Share the Responsibility
Shared Ownership
What is shared ownership?
Shared ownership is a type of mortgage. In contrast to a residential mortgage, you acquire a share rather than the entire property. On your portion, you’ll make a mortgage payment, and on the remainder, rent payment.
Saving up a sizeable down payment can be challenging if you are a first-time buyer. Shared ownership mortgages can be useful in this situation. Housing Associations provide these mortgages, which are also referred to as “Part Buy, Part Rent” mortgages.
With the help of a housing association, you might be able to own 25% to 75% of a property while renting the remaining portion. All you must have to get going is a 5% down payment on the portion of the house you’re buying.
Shared Ownership Mortgages are aimed at people who reside in the UK who are?
- First-time buyers
- Former homeowners who currently cannot afford to purchase
- Those who already reside in Shared Ownership Housing.
- Tenants of council or housing association properties.
- Households with annual incomes under £80,000. If you reside in London, the upper limit increases to £90,000.
How can I obtain a Shared Ownership Mortgage ?
Prior to obtaining a Shared Ownership Mortgage, you must apply for and be accepted into the Shared Ownership Programme.
Typically, you will be asked for information about your income, spending plan, chosen location, and credit history.
Following your acceptance, you can begin the Shared Ownership Mortgage application process. Before applying, be sure your lender offers this type of mortgage because not all do.
You must disclose details about your household’s income and credit history in order to be approved for a mortgage.
Your ability to borrow money typically depends on:
- Your earnings
- Services fees
- Floor rent