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If you're struggling to get onto the property ladder, utilising a government scheme might be beneficial for you! Various schemes are available to assist with purchasing a property, but some may suit your situation better than others. This particular scheme is distinctive because it allows you to take out a mortgage for a percentage of the property and repay the remaining portion through rent.
It may seem unusual, but taking out a mortgage on part of a property is quite popular! As a mortgage broker in Essex, we often encounter applicants who wish to purchase a property through the Shared Ownership scheme.
The share you can buy is usually between 25% and 75%. You can buy a 10% share on some homes, with the remaining percentage owned by the local authority or developer. Along with your regular monthly mortgage repayments, you'll also have to pay rent on the remaining share of the property. Shared Ownership homes are always leasehold, which means you'll also be responsible for paying ground and service charges.
To avoid any potential rejections, we will ensure that you meet the Shared Ownership scheme's eligibility requirements before submitting your application.
To qualify for the scheme, you must meet the following criteria:
If you're seeking mortgage advice in Essex on Shared Ownership mortgages, check out our YouTube video, where we explain the process in detail. Additionally, we've provided answers to frequently asked questions about Shared Ownership mortgages in Essex for your convenience.
As a mortgage broker in Essex,we have assisted numerous applicants in securing mortgages through the Shared Ownership scheme. It has proven to be a significant aid for individuals struggling to accumulate the necessary funds for a deposit and enter the property market. In addition to Shared Ownership, we can also provide guidance on other Help to Buy mortgage schemes. Our team of mortgage advisors in Essex are equipped to assist you in assessing your options and determining the best course of action for your specific financial and personal circumstances.
One option for homebuyers is Shared Ownership, which involves obtaining a mortgage for a portion of a property and paying rent for the remaining percentage. Typically, Shared Ownership mortgages cover 10% to 75% of the property's value. For instance, if you secure a mortgage for 65% of the property, you'll be responsible for paying off this amount while also paying rent on the remaining 35%. While you'll have two payment obligations, Shared Ownership may be a more affordable alternative to a traditional mortgage or rental in Essex.
When you opt for Shared Ownership, your deposit requirement is based on the percentage of the property you're mortgaging. So, if the minimum deposit is 5%, your deposit will be lower if you're only mortgaging a share of 10% to 75% compared to the deposit needed for 100% of the property's price.
For those with poor credit in Essex, Shared Ownership may not be a feasible option. This is because most lenders are unwilling to accept applications from individuals with bad credit. However, there are specialist lenders that cater to such applicants, and our mortgage advisors in Essex can assist in identifying suitable options and securing an appropriate deal tailored to your specific circumstances.
With Shared Ownership, you'll be required to make monthly payments towards the mortgage while also paying rent for the remaining share of the property to the housing association. To be eligible for Shared Ownership, you must be a first time buyer, as the scheme prohibits ownership of any other property. Additionally, it's important to note that Shared Ownership mortgages are only available for new build properties and any property purchased under the scheme will be leasehold.
To qualify for a Shared Ownership mortgage in Essex, you must be over 18 years of age and have a maximum annual household income of £90,000. If your income exceeds this limit, it's unlikely that you'll be eligible for the scheme.
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Shane
I cannot praise this team enough, they have been amazing. Especially Tom who went above and beyond to sort out my really complex mortgage and get me a deal which meant I could move to my new house. I would thoroughly recommend Essexmoneyman, they...
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Shane
I cannot praise this team enough, they have been amazing. Especially Tom who went above and beyond to sort out my really complex mortgage and get me a deal which meant I could move to my new house. I would thoroughly recommend Essexmoneyman, they...
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Imogen
We shopped around trying to find the best deal, should have come straight to Essexmoneyman, Nathan and Laura found me a perfect mortgage. When we had picked our product, they were speedy in ensuring they processed our applications quickly and taking...
2 years ago
Imogen
We shopped around trying to find the best deal, should have come straight to Essexmoneyman, Nathan and Laura found me a perfect mortgage. When we had picked our product, they were speedy in ensuring they processed our applications quickly and taking...
3 years ago
Jim
Matt and anna made the whole process super easy during the pandemic. as first time buyers we were worried but they made sure we were able to enjoy our first home together. thank you !!
2 years ago
Jim
Matt and anna made the whole process super easy during the pandemic. as first time buyers we were worried but they made sure we were able to enjoy our first home together. thank you !!
3 years ago
As part of your appointment, your mortgage advisor in Essex will evaluate your income and expenses to determine your eligibility and affordability for a Shared Ownership mortgage in Essex.
Our team will conduct a thorough search of 1000 mortgage products to identify the optimal one that suits your requirements.
We will assist you in obtaining a mortgage agreement in principle, a valuable tool for supporting any new build offers you may make.
Upon acceptance of your purchase offer, we will submit your full mortgage application and supporting documents to the lender.
Throughout this process, your designated case manager will ensure that you remain informed through formal communication, including mortgage offer, completion, and beyond.
In addition to securing the best mortgage deal, our services extend beyond. We will recommend insurance coverage that is relevant to your needs to safeguard you and your loved ones.
We will also reach out to you when your mortgage deal expires to ensure that you are on the best deal possible.
With years of experience in assisting home buyers with Shared Ownership mortgages, we're eager to help you as well. During your free mortgage appointment, we can explain the process and determine whether you meet the schemes requirements.
With over two decades in the mortgage industry, we have helped numerous clients realize their homebuying aspirations. Providing exceptional customer service is paramount to our operations.
Our hard work and determination to find you the best deal available is reflected in our brilliant reviews; feel free to check some of them out!
Our online booking system now allows you to schedule your complimentary mortgage appointment at your convenience, with seven-day availability that includes weekends.
We work with a large panel of lenders, including high street and specialist lenders, to locate the perfect mortgage product that suits your unique financial and personal circumstances.
Our mortgage advisors in Essex are professionals who know exactly what they're doing when it comes to finding the ideal mortgage for you. Contact us at Essexmoneyman today, and let's see how we can assist you.
In order to obtain a mortgage, a deposit is typically required, with very few exceptions. Shared Ownership also requires a deposit, and the minimum amount can vary depending on a few factors.
One of these factors is the percentage of the property for which the mortgage is being taken out. For instance, if the mortgage is for 50% of a property valued at £200,000, the minimum deposit required would be 5% of that amount, resulting in an approximate deposit of £20,000.
Credit score is another factor that can affect the required deposit amount, and this is not exclusive to Shared Ownership applicants. A low credit score will usually result in a higher deposit being required when obtaining a mortgage.
"Staircasing" is a term used in the housing industry to describe the process of requesting to increase the share of a property owned by a homeowner from the local authority and building society.
For instance, if a homeowner initially owns only 10% of the property, they should have the option to purchase an additional 25% if it becomes affordable in the future.
During the purchase process, it may be possible to have a conversation regarding the potential opportunity to purchase additional shares in the future.
Shared Ownership homes are leasehold, meaning you will be required to pay ground and service fees in addition to your regular mortgage payments and rent. It's also essential to take into account the various costs associated with obtaining a mortgage, such as property surveys, legal fees, and any broker fees.
When selecting a property survey, it may be worthwhile to pay a little extra for a more comprehensive survey. This will help identify any issues with your potential future home, which could impact its value in the future. A qualified mortgage advisor in Essex can recommend the best survey to take.
Properties eligible for the Shared Ownership Scheme are limited to those owned by housing associations or builders. In some instances, the property you are interested in may have been specifically constructed for Shared Ownership, rendering traditional mortgages unavailable.
We are here to guide you through the entire process, explaining how Shared Ownership works, its potential benefits, and how we can begin. Contact us to schedule a free mortgage appointment today and begin exploring Shared Ownership opportunities in Essex.
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Essexmoneyman.com & Essexmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
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Essexmoneyman.com & Essexmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk
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