Shared Ownership Mortgage
- The Basics

Shared Ownership Mortgages - the facts

There are three facts about Shared Ownership Mortgages:

» Number One: Shared Ownership Mortgages make buying a home more affordable because you buy part and part rent your home.

» Number Two: Homebuy refers to the Government's range of Shared Ownership Schemes.

» Number Three: Your local housing association manage shared ownership schemes in your area.

Shared Ownership? Homebuy Mortgage? Key Worker Mortgage? Shared Equity Mortgage? What does it all mean?

Key Worker Mortgages, Homebuy Mortgages and Shared Equity Mortgages are all types of Shared Ownership Mortgages - but different rules apply depending upon the scheme that you get involved in.

Getting a Homebuy Agent

If you are just starting to research shared ownership mortgages/ homebuy schemes, and have not yet been accepted by a housing association, then as your first port of call, you need to get yourself a shared ownership agent.

They will be able to tell you whether you qualify for a shared ownership scheme and take you through how to register for a shared ownership scheme in your area.

Some basic facts of shared ownership schemes

Shared Ownership Schemes are sometimes referred to as 'part buy, part rent', because that is just what the scheme allows you to do. You buy a percentage share in a property and then you pay rent on the remaining share that is owned by your housing association.

It is also possible to buy a small share in the property and then gradually increase your share in the property. This is called 'staircasing'. Not all schemes work on this basis and there are many variations, such as an Open Market Home Buy and a Shared Equity scheme where no rent is payable. Your homebuy agent will be able to guide you accordingly.

What to consider when applying for a Shared Ownership Scheme

There are some things that you will need to have figured out and considered before applying for a Shared Ownership Mortgage.

» What share are you looking to buy in the property? This is in terms of the percentage that you want to buy in the property i.e.: 25%, 50%.

» What is the size of your deposit? You can go for a 100% mortgage and we have a team of people that can advise you on this process as some housing associations require you to have protection clauses in your mortgage.

» How much rent are you going to pay on the remaining property? This is determined by your income and working out how much you can borrow.