Shared ownership remortgage
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Find the best shared ownership remortgage deals for you
For those who own a property under shared ownership –perhaps through a housing association scheme or other shared ownership scheme – then remortgaging can be a way of increasing the share of the property that you own. By remortgaging your shared ownership property you could increase the stake that you own of the property.
Shared ownership remortgages – the basics
The process of getting a shared ownership remortgage may vary depending on what type of shared ownership scheme you used to purchase your share of the property. One of the most common shared ownership schemes on the market is the Homebuy scheme, which is a Government backed scheme that allows prospective homeowners to get onto the property ladder.
The scheme works by allowing purchasers to buy a partial share in their chosen property and then pay a small amount of rent on the rest each month.
Depending on the size of the deposit the buyer is able to offer, the share of the property that is owned can range from The share you buy is usually 25-75% of the total house value; your required deposit and the size of your mortgage are calculated against that share.
Shared ownership remortgages to increase your share in the property
Many shared ownership mortgage schemes offer customers the means to buy additional shares in their property over the years, usually in increments of around 10%. This process is known as ‘staircasing’.
Obviously, owning a higher share in the property will mean you need to pay a little more each month on your mortgage repayments and a little less each month on the rental payments for the share that is still Government-owned. The key advantage of the staircasing process is that you could eventually own your house outright, without needing to lay out a large lump sum to do so.
Shared ownership remortgages to get a better deal
Of course, just like any other homeowner, there may be other reasons for remortgaging besides that of increasing your ownership share. For example, if your current mortgage deal has a discounted rate or a fixed rate that is now coming to an end, you may want to consider remortgage options in order to secure a more competitive interest rate or more flexible payment terms.
If you are thinking about remortgaging a shared ownership house – whether it is to lower your monthly repayments, or to increase your stake in the property - it is a good idea to get remortgage advice from a specialist who can help you find the best deal.
Fees and costs of remortgaging
Bear in mind that just as with getting a mortgage deal in the first place, there are likely to be a number of fees and expenses associated with remortgaging with shared ownership. This is especially likely to be the case if you wish to remortgage to a new mortgage lender, rather than staying with your existing lender buy moving onto a different deal. Some of the costs involved could include:
- An arrangement fee from your chosen mortgage lender – this may be the case even if you are remortging with the same provider
- A valuation fee
- An administration charge
- Conveyancing fees
At Fair Mortgages our team of independent, whole of market mortgage experts can discuss your remortgage requirements and help you to find the most suitable remortgage deals – call us today on 0117 403 4474 or to speak to one of our mortgage advisers click here »