The Shared Ownership Scheme lets you take out a mortgage on a smaller proportion of a property, while the remaining percentage is owned by the local authority or builder. The average amount you will have to purchase is somewhere between 25-75% of the property, but some lenders may allow going as little as 10%.
Since you will own a small percentage of the property, you must pay a monthly rental fee to the proprietor of the remaining shares. Since all Shared Ownership homes are classified as leaseholds, you must pay ground and service charges. Book your free mortgage appointment to get open and honest mortgage advice in Middlesbrough.
Here at Middlesbroughmoneyman, our mortgage advisor in Middlesbrough can check if you are eligible for a Shared Ownership in Middlesbrough. Worry not. If you are unable to meet the criteria for a Shared Ownership, you may be better suited for the Help to Buy Equity Loan Scheme instead.
If you need open and honest mortgage advice in Middlesbrough about the Shared Ownership Scheme. We encourage you to check out our video below or continue down the page to see our Shared Ownership FAQs.Apply Now
When you take out a mortgage using Shared Ownership in Middlesbrough, you are basically only buying a portion of a property and then paying a rental fee on the remaining percentage. This is typically lower than market value rent and will be paid to a third party, normally covering ground rent and service charges. Usually with a Shared Ownership mortgage in Middlesbrough, you will be purchasing somewhere between 25% and 75% of the properties purchase price, though this can vary from mortgage lender to mortgage lender, as some may let you go lower than this.
Whilst there can be specialist mortgage products that are available to customers who have bad credit to their name, the vast majority of these are not accessible to anyone who is looking to purchase a property using Shared Ownership in Middlesbrough. In addition to this, if your credit rating isn't to a high enough standard, you may not even be accepted for the Shared Ownership Scheme.
You do have the ability to pay cash for the share you wish to purchase, if you are able to do so, however, the majority of property purchasers will need to take out a mortgage to spread the costs of their new home over a particular length in time. Home buyers are able to use Shared Ownership in Middlesbrough on either new build properties or existing properties that have been included in the resale programme with a housing association. Any property under a Shared Ownership in Middlesbrough will be leasehold.
For applicants to be able to qualify for a Shared Ownership mortgage in Middlesbrough, they will need to be over the age of 18 and also be earning at the maximum, an annual household income of £80,000. Any higher and you will likely not qualify for the scheme.
As a mortgage broker in Middlesbrough, we have been helping customers to make use of the Shared Ownership Scheme for years now, as a means of them getting onto the property ladder. We know all of the ins and outs of this variation of the government Help to Buy Scheme, and will be able to see whether or not you are eligible for it.
Book a free mortgage appointment with one of our mortgage advisors in Middlesbrough to find out if you qualify for Shared Ownership in Middlesbrough.
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Discuss your current situation and determine your eligibility for a Shared Ownership mortgage in Middlesbrough.
During this appointment, your mortgage advisor will also take a look at your income and expenditure to work out your mortgage affordability.
Our team will take a look through 1000s of mortgage products to find the best one you can access.
We will help you to obtain your mortgage agreement in principle which is very useful for backing up any purchase offers you make.
Once your offer has been accepted, we will move on to submitting your full mortgage application and evidential documents to the mortgage lender.
Whilst this is all happening, your dedicated case manager will always make sure you are up-to-date, through to formal mortgage offer, completion and beyond.
Our service goes further than just this. As well as securing you the best mortgage deal, we will also recommend relevant insurances to keep you protected.
We will also reach out to you when your mortgage is due to be renewed, to make sure that you are always on the best deal.
Using our booking service, you can book a free appointment at a time that is best suited to work around your time frame, depending on availability. Our mortgage advisors in Middlesbrough work 7 days a week, including weekends, from morning to late.
Here at Middlesbroughmoneyman, we have access to a large panel of high street and specialist lenders. This allows us to adapt our service and find you the mortgage deal most suitable for your situation.
As a mortgage broker in Middlesbrough, we have a lot of experience in the mortgage world, having been doing so for more than 20 years. We have encountered a situation like yours before, so we can use our knowledge to assist you as best as we can. Please get in touch and we will see how we can help.
Here at Middlesbroughmoneyman, we are proud of the high level of service we have provided to all new and existing customers, which you can read in our real customer reviews.
Customer satisfaction is always at the forefront of what we are doing here.
Our team works hard to provide our customers with the highest level of customer service. This can be shown in our appointment availability, offering appointments from early to late at night.
Our mortgage advisors in Middlesbrough have a vast knowledge of helping home buyers and homeowners in Middlesbrough get onto the property ladder.
This is no different for those who are looking to get a mortgage with a Shared Ownership in Middlesbrough. During your free mortgage appointment, a team member will explain the scheme and help you determine your eligibility.
We find some customers believe they will not need to put down a deposit for a Shared Ownership in Middlesbrough. This is incorrect, you will need to put down a deposit for this mortgage type. Almost every type of mortgage requires some form of deposit to deposit.
How the shared ownership works are, your mortgage will be taken out on the percentage of the property you own. As such, your deposit will directly reflect this. For example, if your property was valued at £300,000 and you wanted to buy a 50% shared, you need to put down a deposit for the £150,000 you would be paying for.
If you put down only 5% deposit, your £150,000 would be on a 95% loan-to-value. If you can afford to put down more, you’ll have access to a wider range of mortgage deals and also lower your potential mortgage payments.
This type of practice is known as staircasing. This is when a homeowner can raise the share they own, at any time.
If you are only in ownership of 25% of the property initially, you will have the option, to purchase a further 25%, should it be affordable in the future.
Increasing your share will result in lower amounts on your rental costs, although your mortgage payments will remain the same.
When you take out a Shared Ownership in Middlesbrough, make sure to be aware that you pay both a mortgage and rental fees at the same time.
At the same time, you will be paying background rent and service charges because as we said Shared Ownership homes are leasehold.
We strongly recommend that you also conduct a property survey. If there are problems with the property, it is important that you know them in advance. One of our dedicated mortgage advisors in Middlesbrough will inform you of the most suitable survey to take.
The Shared Ownership Scheme can only be used on properties in Middlesbrough owned by housing associations or builders. Some properties in Middlesbrough may have been built specifically for this scheme.
One of our open and honest mortgage advisor in Middlesbrough will be able to explain this in detail regarding the Shared Ownership Scheme to you. Book your free mortgage appointment today and get started on the process of a Shared Ownership in Middlesbrough.