Shared Ownership Mortgages
If outright purchase isn’t an option there are still far better alternatives to renting. Shared ownership allows you to buy an initial share of a property at a rate you can afford. This means that you can get into home ownership in manageable stages. In the future you can simply sell your share for its value at the time. Alternatively you can buy further shares in your home, until you own the property outright. Initial shares can vary between 25% – 75% of the current value of the property.
This type of mortgage is a niche area of the mortgage market, and at Expert Financial we are specialists in shared ownership. We are currently a recommended Mortgage Broker for Domovo (BPHA) and Accent. We can help you understand better understand the purchase of a shared ownership mortgage and find the best shared ownership option for you.
Shared Equity is similar to Shared Ownership in that you are able to purchase a property for a lower amount. However, with shared equity you actually purchase the whole property and the developer or housing associate retain an “equity stake”. For example you may pay £120,000 for a property worth £160,000 and the developer keep a 25% stake. You will then repay the 25% based on the market value when you sell. You can also choose to buy out the equity share at any time based on the market value at that point.
Shared Equity Mortgages are also limited to just a few lenders. Expert Financial has been successfully arranging shared equity and shared ownership mortgages for many years and pride ourselves on being up to date with all the latest affordable housing products and mortgage lender criteria. Call us today to explore your options when it comes to shared equity and shared ownership mortgages and let us find the best mortgage and rate for you.
Purchasing with Shared Ownership?
Expert Financial’s automated Shared Ownership Affordability Calculator allows you to check the maximum potential share of a property you would be eligible to buy without needing to speak to us first.
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