Shared Ownership Mortgage
At Eagle Property Solutions we have seen a rapid growth in customers requesting a Shared Ownership Mortgage. With many different packages available on the market we are happy to provide you with the best possible deal and rate.
A Shared Ownership Mortgage is also known as Part Rent Part Buy, and is where you share the ownership of the property with either a counsel or housing association. Only counsels and housing association offer this type of mortgage, so properties applicable for Shared Ownership Mortgage are limited. Depending on the value of the property and your share in it, you will be liable for monthly rent. Usually you are able to increase your share of the property as time passes, hence decreasing the monthly rent you pay. It is important to factor in the extra fees of a Shared Ownership Mortgage, which include those of a solicitor, lender, and mortgage broker.
Although buying a property with Shared Ownership Mortgage is an attractive prospect particularly for first time buyers, it is an increasingly difficult mortgage to secure. Due to the fact that you only own a share of the property, this may mean that you do not reap the benefits if there is a surge in the housing market.
The benefits of a Shared Ownership Mortgage include the low (typically 25-50% LTV) mortgage that is required, smaller deposit, and decreased monthly costs. It is also useful if your earnings are lower than £60K and you are looking to buy a larger more expensive property, bearing in mind that for a standard residential mortgage you are only offered around a loan of twice to three times your salary.