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On the Shared Ownership Scheme
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Shared Ownership Mortgage Advice
You may have heard of the Government’s Shared Ownership Scheme and wondered whether it would be right for you. On this page, you will find out how the scheme works, how you apply and whether you are eligible. At Your Mortgage Expert, we can offer Shared Ownership Mortgage Advice and have a huge amount of experience helping our clients with their applications. Please do get in touch if you would like to discuss this further.
How does the Shared Ownership Scheme work
Before we start, it is important to note that we are focusing on the Government’s shared ownership scheme in England.
The Shared Ownership scheme is a Government backed option to help with affordability. It offers you the chance to buy a share of between 25% and 75% of your home’s value and then pay rent on the remaining share. For this reason, it is often referred to as ‘part-rent, part buy’.
Shared Ownership schemes might be a good option for people who have struggled to raise a large enough mortgage based on their savings and income alone. It also provides long-term security, which may be better than simply renting a property.
Typically, you would raise a mortgage on your share of the purchase price of the property. And pay a deposit of 5% on this amount, rather than the full purchase price. Again, this can make it easier for those people on lower incomes or who are struggling to save a deposit.
To find out more, simply get in touch.
Who is eligible to apply for the Shared Ownership scheme?
Not everyone is eligible to apply for the scheme. You could buy a home through the Help to Buy Shared Ownership in England, if:
- Your household earns £80,000 a year or less outside London
- Your household earns £90,000 a year or less in London
- You’re a first time buyer
- You used to own a home previously but can’t afford to buy one now in the normal way
- You’re an existing shared owner looking to move home
To find out more about Help To Buy Shared Ownership schemes, visit: www.helptobuy.gov.uk/shared-ownership Or contact us and we can talk you through the whole process with experienced Shared Ownership mortgage advice.
How do I exit the Shared Ownership scheme?
Many people who buy a Shared Ownership property worry about how they sell the property or how they will own it solely.
There’s nothing stopping you sticking with the share you initially bought if you’re not in a position to staircase. However, selling your shared ownership home can be complicated if you’ve not increased your shares up to 100% ownership by the time you decide to sell. So it is important to consider your “exit strategy” when you purchase your property.
Over time, as you earn more, you can increase the size of your mortgage until you own the property entirely. This is a process called ‘staircasing.’ There are rules around staircasing and it varies according to your housing association and according to the age of your property.
We are experts in the staircasing process and can advise you on the options available to you. We can also advise you on your remortgage options if you need to raise money in order to staircase.
How can Your Mortgage Expert Help?
You will need to apply for a mortgage for your share of the property. And we can help you with expert Shared Ownership Mortgage Advice.
The application process is similar to that of a normal mortgage. We will ask you a number of questions so that we can understand your personal circumstances and whether you are eligible for a shared ownership mortgage.
We would advise you speak to an impartial mortgage broker before you start your search for a shared ownership property.
This is because we will ask the right questions before recommending whether shared ownership is for you. There are pros and cons to Shared Ownership and other types of mortgages might be more suited to your situation.
At Your Mortgage Expert, we don’t charge for the initial consultation, so by speaking to us, you are under no obligation. So why not get in touch for expert Shared Ownership Mortgage advice and take that first important step. We are based in Salisbury but can help you no matter where in the UK you live. We can carry out face to face meetings for those based locally. Alternatively, we can carry out the whole process remotely via the telephone, email or video call.
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.
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