Mortgage Advisor For Shared Ownership

Albion Forest Mortgages – Specialist Mortgage Advisor for Shared Ownership.

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Albion Forest Mortgages are a specialist mortgage advisor for shared ownership. Get in touch today to discuss your shared ownership options.

Getting on the Property Ladder with a Mortgage advisor for Shared Ownership

Buying your home will usually largely depend on two things, your deposit and your income. This means that if you have either a low deposit or a low income, you are going to be limited on how much you can borrow. Shared ownership makes it so that you can buy a home with a smaller deposit or income. 

With shared ownership you buy part of the property, usually between 25-75% and you rent the rest. This therefore means you usually need a smaller deposit/income as you are only getting a mortgage for part of the property.

Shared Ownership Mortgages Explained

Shared ownership mortgages are generally different from standard mortgages. So if you could borrow say £100,000 for a normal mortgage, you may only be able to borrow £75,000 with shared ownership. This sounds bad, but as you’re only buying a 25% for example and renting the rest, the total property price could therefore be £300,000 potentially. It’s worth speaking to a specialist mortgage advisor for shared ownership.

First Time Buyer Shared Ownership Mortgage

If you’re a first time buyer shared ownership mortgage may be a good way of getting on the property ladder. There are two main things that hold back first time buyers, low deposit and low income. What makes a First Time Buyer Shared ownership mortgage perfect is that you can get one with a low deposit and low income potentially. This therefore means you can get on the property ladder and start building equity!

Shared Ownership Mortgage – How It Works

  1. You only pay the mortgage on the share you buy.
  2. You pay rent on the rest.

It’s also possible you may also pay a service charge. You should take this into account when you’re working out how much you can afford. If you want more information on a shared ownership mortgage and how it works get in touch with one of our specialist advisors that can talk you through it.

95 Percent Mortgages Shared Ownership

Currently it’s nearly impossible to get a 95% mortgage…unless you use the Shared ownership scheme. You can get a mortgage with just a 5% deposit of the mortgage. So if you are buying a 25% share of a £400,000 property, you would only generally need a £5,000 deposit.

Shared Ownership Mortgage Rates

Shared Ownership Mortgage Rates are generally different from standard rates, as usually they have specific products available for Shared ownership. Therefore its best to speak to a specialist Mortgage broker in Shared ownership mortgage rates to ensure you get the best deal.

Shared Ownership Staircasing Mortgage

A shared ownership staircasing mortgage is where you are able to purchase additional share of the property as time goes by. This therefore allows you to in theory end up owning all of it. When you start looking into shared ownership it’s worth speaking to the Housing association to see how much you are allowed to purchase.

Bad Credit Shared Ownership Mortgage

If you have Bad Credit you may still be able to use the Shared Ownership scheme. It will largely depend on what the bad credit was, when it was and how much it was. Speak to one of our advisors as this could be complex, or read our Bad Credit Shared Ownership Mortgage article here. If you’re considering shared ownership you should first check your credit report. We recommend Checkmyfile for this as they will show you the three largest referencing agencies. These are the agencies lenders tend to use, so knowing what is there is a big step in your journey. Next speak to either your Bank or a Specialist Mortgage Advisor.

Will I Have To Share A House With Other People?

No, this is one of the common misconceptions for Shared Ownership. You share the ownership with a housing association and pay them rent. You do not have to share with other people.

Who Can Apply?

Most people, it’s not just for First Time Buyers. As long as you have sufficient deposit and income and can afford the monthly costs. Your income can’t be over £80,000 though (£90,000 in London)

Am I Restricted To The Type Of House I Can Buy?

Only eligible properties are sold on Shared Ownership. Often New build, but you also get Shared ownership resales.  Your local help to buy scheme website may have some listings for you if you are considering shared ownership. Alternatively contact your local housing associations as they may be planning sites nearby.

Are you a specialist mortgage broker for shared ownership?

Absolutely. If you want to get a shared ownership property it’s worth speaking to a specialist mortgage broker for shared ownership like us. You may be able to get a mortgage with your Bank or Building society. However that might not actually be the best option for you. Get in touch today to see how we can help.

Which Banks Offer Shared Ownership Mortgages?

Lots of lenders offer Shared Ownership Mortgages. Most of the high street lenders will, and lots of specialist lenders as well. If we listed them all it would take a few pages of our website. Before they let you have a property Housing associations will often want you to be financially assessed. This doesn’t mean you have to do the mortgage with them though.

Are Shared Ownership Mortgages Easier To Get?

Not really. In fact you could say they were more difficult to get. You have to fit a lenders criteria and affordability as well as the Shared Ownership scheme. Therefore you’re essentially doubling how much criteria you need to fit. Speak to your Bank or a specialist Mortgage Advisor to discuss your options.

How Much Can I Borrow On A Shared Ownership Mortgage?

We get asked this a lot. We have to take a lot of things into account so a mortgage calculator just wouldn’t work. If you want to know how much you can borrow, give us a call. It will only take around 10 minutes.

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Useful Links for Shared Ownership

Why Albion Forest?

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