Shared Ownership
Shared Ownership Mortgages, DIYSO Mortgage*, Shared Appreciation Mortgage, Low Cost Housing Mortgages call them what you like they are all basically the same deal with or without a few bells and whistles. Put simply they allow you to buy a larger property than you maybe could usually afford by sharing the ownership with another party, normally a Local Authority or Housing Association. Typically you are able to buy between 25% and 75% of the property and the other percentage is leased from the co-owner at a low monthly rent. Some people then buy a larger share in the property as time goes by, eventually aiming to own the entire property. This is known as staircasing.
Obtaining mortgage funding for such purchases isn't quite as straight forward as with standard purchases this is because some lenders just do not lend on such ventures however; with the help of an expert mortgage adviser who has experience in this area of the market, you will be able to see quite clearly what options are available to you.
Not all clients circumstances are the same and some people can really benefit from the helping hand that shared ownership can offer in the early years of home ownership. Contact one of our expert advisers today to discuss shared ownership further and take the first step toward becoming a home owner.
*Do It Yourself Shared Ownership Mortgage. This scheme works in a similar fashion to traditional shared ownership with one major exception. Rather than buying a property directly from the housing association, they set you a budget and you find a property on the open market. They will then buy the property in full then sell you a share in it.