Shared Ownership Remortgage – How Does It Work?
If you have a shared ownership mortgage, you may wonder whether it’s possible to remortgage. And if it is, how it works. In this guide, we’ll also run through the process so you know what to expect and how to proceed.
Why remortgage?
With a shared ownership mortgage, shares in a property usually vary from 25-75%. However, remortgaging can increase your shares to 100% until you own the property outright. This is known as shared ownership staircasing.
If your equity and/or income has risen considerably since you first took out the mortgage, getting a review for a remortgage is a good idea. If you want to secure a larger loan and work towards owning your property outright, it can be worth the effort.
Remortgaging for a shared ownership – what’s the process?
The remortgage process for a shared ownership property is similar to other mortgage types.
1. Speak to your current lender
First up, you should speak to your current lender. Remortgaging with the same lender can have its benefits. It’s quicker and involves less administration costs. However, it’s always worth shopping around to see if another lender can offer a more favourable rate.
2. Inform your housing provider
You should let your housing provider know that you’re looking to remortgage.
3. Speak to a mortgage broker
Shared Ownership mortgages are different to normal mortgages, so it can be worth getting help from a specialist mortgage advisor. A broker will be able to search the market and find the right product for you.
4. Switch or stay?
If you are looking to switch lenders, you will need to apply for the remortgage. This will include income assessments and valuations. If you want to stay with your current lender, you should be able to skip a lot of admin processes.
A Whole of Market mortgage broker can review all your options and give you access to more mortgage products.
Can you borrow more money on a shared ownership remortgage?
Yes, you can. By switching to a new provider or contacting your current mortgage provider, it’s possible to borrow more money. Securing a larger loan will depend on your financial circumstances. This extra cash will allow you to repay a current lender with surplus funds to purchase more shares.
Get started with your remortgage today
If you’re looking to take out a new mortgage to get closer to owning your home outright, speak to the expert mortgage brokers at Agentis today.
We’ll explain the process in a way that’s clear and transparent. Our specialist advisors are here to help you navigate the mortgage market with our Whole of Market access and exclusive deals that you won’t find anywhere else.
*You may have to pay an early repayment charge to your existing lender if you remortgage.
