How Do Shared Ownership Mortgages Work

If you’re on the turbulent journey of securing a mortgage to buy a property, you may have encountered more than your fair share of hurdles. For some, particularly first-time buyers, the issue is struggling to afford a house in the first place. This can feel like your property-buying dreams have ended before they’ve even begun.

If you’ve reached this stage, you may be ready to consider shared ownership. In this guide, we’re looking at how this mortgage scheme works to help you decide whether it’s the right option for you.

How do they work?

A shared ownership mortgage allows you to part rent and part buy a property.

With smaller deposits and more manageable repayments, shared ownership mortgages can help make buying a property more affordable. It’s certainly an enticing prospect.

Starting from as little as 25%, you could own as much as 75% of the property depending on what the lender feels you can afford. The rest is paid as rent to a housing association.

As you will only require a mortgage to cover a smaller percentage of the property, deposits tend to be smaller as well as the repayments. This makes them suitable for people who are on lower wages and have been overlooked by lenders for other types of mortgages.

If you ultimately want to own your own home outright, this is still possible. Mortgage brokers can help find you a suitable property that allows you to increase your share of the house, giving you the chance to own 100% of your home.

For some, shared ownership can be the key to finally getting onto the property ladder. For others, you may prefer to look at other options designed for struggling first-time buyers.

This can include New Build schemes.

Get professional advice on Shared Ownership schemes

Speak to the advisors at Agentis. We can talk you through the details of how the Shared Ownership scheme really works and how this would fit with your property buying goals. As Whole of Market mortgage advisors in Peterborough, we have access to exclusive deals that you won’t find anywhere else. Get your free initial consultation today.