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Shared Ownership Mortgages

Our Shared Ownership Mortgage Service - helping you make the right choice

Why choose us?

With the recent November 2015 Autumn statement the Government are keen to extend home ownership by lifting restrictions on shared ownership schemes. Going forward 135,000 homes will be built to be sold on this basis. You will be eligible if your household income is under £80,000 (outside London) and under £90,000 (in London).

Fair Mortgages can provide you with a first class service if you are looking at home ownership using a shared mortgage. 

Special features of what we offer include:

  • Whole of market service - we deal with over 50 UK lenders
  • Access to leading market rates from help to buy lenders
  • Fast turnaround - call us if you need to move fast!
  • We help you with the whole mortgage process - as well as an adviser you will be assigned a case manager to help your mortgage go through smoothly

To investigate your shared ownership equity mortgage options call our specialist team on 0117 313 7780 or fill in our shared equity mortgage enquiry form »

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With a shared ownership or shared equity mortgage, you could achieve home ownership sooner than you might thing by taking part in one of several Government-backed schemes designed to help prospective buyers.

These schemes are designed for people who are unable to purchase a home outright, and are offered by house builders, local authorities, and the Government, in order to help first time buyers get a foothold on the property ladder.

How does a shared ownership mortgage work?

Shared equity ownership schemes vary, but in general what they tend to have in common is that they provide buyers with a loan to cover some of the value of the property, in the form of equity or a mortgage guarantee.

In practice, this means that the buyer can get on the housing ladder with a lower deposit than would normally be accepted by mortgage lenders, because the Government is shouldering some of the risk. There are two main types of shared ownership mortgage currently available:

Help to buy scheme

This is a Government-backed scheme with two parts:

  • Help to Buy: Equity Loan - this an England-only scheme under which the Government lends you up to 20% of the cost of a new build property meaning that you only need a 5% cash deposit and a 75% mortgage to make up the rest. You won’t be charged loan fees on the 20% loan for the first five years of owning your home. The home you want to buy must be a new build with a price of £600,000 or lower, and you must not already own any property at the time you buy a home with an equity loan. Please note the rules for help to buy in Scotland and Wales differ slightly.
  • Help to Buy: Mortgage Guarantee Scheme - this is the second part of the Help to Buy scheme and works in exactly the same way as any other mortgage except that under the scheme the Government offers lenders the option to purchase a guarantee on mortgage loans. To qualify for a mortgage supported by Help to Buy: mortgage guarantee scheme the property you are looking to purchase must be priced at £600,000 or under. As with the equity loan option, there are several conditions – for example, you mustn’t own any other property at the time you use the scheme to buy a property. Your mortgage must be on a repayment basis, and interest only, offset and guarantor mortgages are excluded from the scheme. You can’t let out the property to somebody else.

NewBuy scheme

This is a home purchase scheme that is intended to assist people in buying a newly built home. NewBuy lets you buy a new-build home with a purchase price of up to £500,000 with a deposit of only 5%.

  There are several building firms taking part in the scheme, so new developments near you may be eligible. You don’t have to be a first-time buyer and there’s no limit on your level of income.

Who is eligible for a shared ownership mortgage?

NewBuy mortgages are aimed people who only have funds for a 5-10% deposit on the home they wish to buy. The lenders participating in the scheme will provide a 90-95% loan-to-value (LTV) mortgage for buyers meeting their qualifying criteria. NewBuy is available to both first-time buyers and to people who already own a home but are unable to save up a substantial deposit.

How much will a shared ownership mortgage cost me?

Many shared equity mortgage schemes have a relatively high loan to value (LTV), which means that they will generally be more expensive than mortgages with lower LTVs. This is because the lender is taking on more risk due to the greater amount owed.

To find the latest shared ownership mortgage deals, click on the FREE mortgage calculator above or call us on 0117 313 7780 or complete our shared equity mortgage enquiry form »

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