Trusted Ipswich Shared Ownership Mortgage Broker

How much you can afford under the shared ownership scheme depends on a combination of factors – namely your income, existing financial commitments, and the size of your deposit.

A reliable mortgage broker with experience in shared ownership deals should be able to offer a tailored guide as to how far your budget will stretch. They’ll take the time to assess your income, outgoings, credit score, and any debts, ensuring that your purchase itself and ongoing subsidised rent and mortgage payments will remain affordable.

Shared ownership was created to assist people who would otherwise struggle to save a deposit get on the property ladder. It’s an especially helpful scheme for first-time buyers, people who’ve had a change in their financial circumstances, young families, and others on a modest income with a lowered capacity to save.

Eligible buyers taking advantage of shared ownership deals can purchase a portion of a home, usually between 25% and 75%, while paying rent on the remaining share at a subsidised rate. Eligibility typically considers income, with a cap to ensure the scheme is accessible to those who need it most.

One of the shared ownership scheme’s biggest draws is its ‘staircasing’ option, through which buyers can increase their ownership share over time until they own their property outright. This can be done completely at your own pace.

Each increase in your share reduces the portion of the property that’s rented, which in turn decreases the amount of rent you pay to the housing association.

It’s essential to be aware that the cost of the additional shares will depend on the current market value of the property at the time of purchase. So, the price could vary each time you decide to staircase.

Shared ownership is an excellent option for all prospective buyers looking to own their home but finding the property ladder a bit too steep. If the deposit demands and mortgage approvals for full ownership feel like a financial stretch, it could be the perfect solution for you.

Our brokers typically recommend shared ownership to first-time buyers, or those who’ve had a change in circumstances and need a more manageable way to own a home. If you qualify for this type of deal, you’ll purchase a share of your property (and proportionately, only need a much smaller deposit), paying subsidised rent on the remaining percentage (owned by a housing association.

Shared ownership mortgages are offered by a diverse range of lenders, from high-street banks to specialised mortgage providers including Halifax, Nationwide, Barclays, Santander, HSBC, and more. These lenders provide mortgage products designed to align with the unique structure of shared ownership, ensuring that buyers can finance their portion of the purchase in a suitable manner.

It’s important to note that the above list isn’t exhaustive, and that each lender will have their own set of criteria, interest rates, and terms.

It’s possible to use shared ownership schemes more than once – especially if you’re looking to move home or adapt to changing lifestyle or financial circumstances.

In order to enter into a new shared ownership agreement, you’ll need to sell your share in your current shared ownership property – you cannot use the scheme to purchase a second property whilst retaining your first. Following this, you’ll be free to apply for a new shared ownership deal.

Under most shared ownership deals, the share of the property not owned by the buyer is typically held by a housing association. Housing associations are not-for-profit organisations dedicated to providing affordable housing. They play a crucial role in the community, offering housing solutions to those who might find the property market otherwise inaccessible – including first time buyers struggling to save for a deposit.

Housing associations are regulated by the government, ensuring that they adhere to strict standards of quality and affordability. When you enter a shared ownership agreement with one, you are essentially becoming a part-owner alongside it. If you own 40% of the property, for example, the housing association owns the remaining 60%.

How much rent you’ll pay on your shared ownership property ultimately comes down to a few key factors, including its total value, how large your share is, and, of course, your housing association’s set rates. With this said, it’s usually less than the market rate.

Under a shared ownership deal, your rent will be charged on the percentage of the property you don’t own. For example, if you own 50% of your property, you’ll pay rent on the remaining 50% owned by your housing association. It’s often subsidised to keep costs down as much as possible, keeping the monthly cost of your mortgage plus rent competitive compared to other options.

How long your shared ownership deal will last depends completely on your individual circumstances, and your chosen housing association’s shared ownership scheme. Most of our clients experience a 4-6 week processing time from initial application to completion – however, this can take longer if your situation is complex.

Working alongside a mortgage broker experienced in shared ownership applications can help speed up the process. They’ll help ensure you meet the criteria for shared ownership, discover the best deal for you, and complete paperwork on your behalf.

A shared ownership mortgage is a unique mortgage package that allows you to purchase a percentage of a property and pay rent on the remaining share (typically owned by a housing association). It’s a particularly popular option for first-time buyers, who often find it challenging to save for a large deposit – especially in today’s market.

Under most shared ownership schemes, you can buy anywhere between 25% and 75% of the property’s value. Your mortgage payments will cover this owned share, whilst you pay subsidised rent on the rest. Should you want to own more of your home, you’ll have the option to increase your share over time in a process known as ‘staircasing’.