With property prices still currently high, and incomes not stretching as fair as hoped, some mortgage lenders are accepting applications for shared ownership mortgages. It is usually first-time buyers who opt to go down the shared ownership route. Some new build properties are available to buy on a shared ownership basis but the majority of properties being sold on this basis are former housing association or council properties. Shared ownership is where part of the property is bought – with a mortgage – and the other part is rented. Shared ownership is usually between 25-75% of the value of the house or flat with the balance being made up with rent.
When the property is sold, it is on the same basis – so if you bought your house with a 50% mortgage and rented the other 50%, when you decide to sell the property it will be split 50-50. Any increase in the value on the part of the property which you own is then yours, and the company who have rented the other part with you will receive any increase in value on their half of the property.
As this is a little complicated to move forward with, the experts at UKFCS are ideally placed to advise you about shared ownership schemes. We already know the mortgage companies who will be able to lend on a property with a shared ownership basis and as impartial whole of market mortgage brokers have access to the best deals currently available. As such, by contacting us we will be able to to advise you on the best way forward. UKFCS will approach mortgage lenders on your behalf, and then be ideally placed to advise you of the best deals available for your situation and requirements. This is something that our considerable experience and expertise means will ensure your mortgage application process goes as smoothly and efficiently as possible.
Every lender has their own criteria regarding the types of properties they will provide mortgages for – and UKFCS know, from experience whether a particular lender is going to be able to offer you a mortgage. Consult UKFCS and let us provide you with all the information and clearly explain the options available to you. Our experienced team of mortgage advisers will be able to discuss each step of the process with you and then help you to decide whether this is a viable option for you. We won't charge you any fees at all, and we will be delighted to help you to buy your dream property through a shared ownership scheme.