Typically, you can buy a share of between 25% and 75% of the property, although this may vary depending on the property and the lender.
Your mortgage payments will be based on the share of the property you own, plus the rent you pay on the remaining share. For example, if you own a 50% share of a property and the rent on the remaining 50% is £500 per month, your total monthly payments will be your mortgage payments plus £500.
To be eligible for a shared ownership mortgage, you’ll typically need to meet the following requirements:
Income: You will need to have a stable and regular income, and it should be enough to cover the mortgage payments and other related costs.
First-time buyer status: You will typically need to be a first-time buyer, or have previously owned a property but are unable to afford one now.
UK residency: You must be a UK resident, and you will usually need to have lived in the UK for a certain period of time to be eligible.
Age: You must be over the age of 18 to apply for a shared ownership mortgage.
Credit score: You will need to have a good credit score to be approved for a shared ownership mortgage.
It’s important to note that these eligibility criteria can vary depending on the specific shared ownership scheme and the housing association or developer that is offering the property. Therefore, it’s important to check the specific eligibility requirements for the scheme or property you’re interested in.
Shared ownership mortgages can be a good option for people who want to get on the property ladder but can’t afford the full purchase price. They offer lower upfront costs and monthly payments, as well as the potential for equity growth and staircasing.
However, there are also additional costs and fees, as well as restrictions on subletting or making changes to the property. If you’re considering a shared ownership mortgage, it’s important to do your research and compare it with other types of mortgages to find the best option for your situation.
Overall, shared ownership mortgages can be a great way to get on the property ladder and to owning your first home. With the right research and preparation, you can find the perfect shared ownership property and start building equity in your own home. If you would like further guidance on shared ownership mortgages, simply give us a call on 0121 796 6655 or click to send us a message.