Glossary of Shared Ownership Mortgages Terms:

This glossary will help you to understand the different terms that relate to a shared ownership mortgage.

Shared Ownership Mortgage

This is simply explained as a mortgage where you part buy and part rent a property. Shared Ownership Mortgage schemes usually involve your Government run housing association.

Staircase/ Staircasing

Staircasing is when you buy additional percentages of a shared ownership property. You often buy in proportions of 25% until you reach 100%.

Homebuy

Is a Government funded scheme providing affordable and low cost housing, namely all types of Shared Ownership Mortgages.

Homebuy Agent

A homebuy agent will assess your eligibility and provide you with details of schemes in your area that are suitable for you.

New Build HomeBuy

New Build HomeBuy is another term for a traditional shared ownership scheme (or a part buy, part rent scheme) where you can part buy, part rent and can staircase your ownership in the property.

Open Market HomeBuy

A new scheme set up by the Government, where you by 75% of a property and then receive two equity loans of 12.5% from the mortgage lender and the Government or homebuy agent, respectively.

Shared Equity

The difference between this part rent, part buy scheme and others is that you do not pay any rent on the remaining amount, but the percentage of the property that you are expected to buy usually ranges from 60 - 75%. There are usually strict rules that come with this kind of 'new build home buy', and some in fact rule out staircasing.

First Time Buyers' Initiative

This is a Shared Equity scheme that helps first time buyers who are eligible, to buy a share in a new home, but they must buy at least 50% of the property and then a Government run agency called English Partnership will retain the rest.

English Partnership

This is a national regeneration agency, which help the Government to support high quality sustainable growth schemes in England. This involves unlocking and increasing the land available for housing and growth needs, creating and supporting mixed communities where people enjoy living and working and improving and enhancing the quality of life through innovation and raising standards.