Expert Shared Ownership Mortgage broker – Access to Up to 100% of share, all types of client backgrounds considered
Getting a Shared Ownership Mortgage can be tricky as the Mortgage Lenders need to factor in ongoing rent to the housing association and potentially service charges and ground rent into their affordability assessment. At Niche Advice, we will appraise your affordability and guide you through the entire mortgage process. We are so confident in our ability that we do NOT charge for our mortgage service until it is fully agreed upon and the funds are released.
The main advantages of Shared Ownership
- No deposit required – schemes up to 100%.
- Full use of the property.
- You’ll benefit from any capital growth in your property over time.
The main disadvantages of Shared Ownership
- Rent is payable on the share that is not owned.
- You may be restricted on alterations you can make to your property.
- Most schemes allow you to increase your share in the property, but not all of them, so you need to check the details.
- Service charges can be high on leasehold properties.
- You may not qualify for the scheme if you earn over a certain amount.
- Shared Ownership Mortgage products can have harsher income multiples calculations for affordability due to the inclusion of other costs such as rent and service charges.
Where do I find Shared Ownership homes?
You can search for available Shared Ownership properties in the area you wish to buy by visiting:
- Your local estate agent.
- Housing association websites.
- Property developer websites.
- Property portals like Rightmove, Zoopla, and OnTheMarket.
How much will I own of my Shared Ownership home?
- Normally, you will be given the option to own between 25% and 75% at the outset.
- Some schemes allow you to purchase additional shares over time, normally in portions of 10%, 25%, or 50%. This is known as “staircasing”.
For example: Property is worth £200,000. If you decide to purchase a 25% share, this would cost £50,000. If you were to buy a 50% share, it would be £100,000. The part you do not buy will remain with the Seller, and they will benefit from the rise in property value and rent.
How much of a deposit do I need to make?
- Some mortgages do NOT require a deposit, i.e. 100% Shared Ownership Mortgage.
- As a rule of thumb, every 5% extra deposit improves the mortgage product choice and terms until you reach 50% loan-to-value.
For example: Property is worth £200,000. If you decide to purchase a 25% share, which costs £50,000, you could potentially take a mortgage for the entire £50,000 (100% mortgage). If you wanted to put in a 5% deposit (£2,500) and borrow the rest it would £47,500 (95% mortgage).
What are the qualification rules?
- First-time buyers or home movers.
- No deposit is needed.
- New build accepted.
- Minimum age 18 years.
- Employed in your current job for at least 1 whole month.
- Self employed 1 years trading history.
- Paying UK tax on income.
- Gifts of deposit considered, including those from abroad.
- Capital and interest repayment mortgages only.
- Minimum income. Although there are no set rules, it is highly likely that you will need to earn at least £30,000 to cover the rent on the share of the property you do not own.
Reasons to choose Niche Advice Shared Ownership Mortgage brokers
- No upfront Broker fees by us. You only pay once the deal is completed.
- Up to 100% of the share being purchased.
- Exclusive Mortgage products from leading lenders.
- Guidance on gifted deposit/lending criteria is provided / in the buying process.
- We do not require you to take household and life insurance with us.
More information about The Shared Ownership Scheme can be found on the government website. Click here.
