If rising interest rates are making you feel anxious about what’s going to happen when you come to remortgage, then don’t worry – you’re not
If rising interest rates are making you feel anxious about what’s going to happen when you come to remortgage, then don’t worry – you’re not
The Shared Ownership Scheme provides a way to get onto the property ladder by buying a share of a property and pay rent on the remaining share.
I want to
What are the benefits?
What are the risks?
On top of making the required mortgage payments, you’ll also have to pay rent to the landlord that owns the remaining share of the property. As a result, there are certain affordability checks you’ll need to pass to ensure you can cover the mortgage payments, rent, and the additional funds required to purchase more of the property over time.
If you’d like to find out more about the pros and cons of the UK Shared Ownership Scheme, arrange a consultation with an experienced team of mortgage advisors at UKMC.
More than just a mortgage advisor, we take the time to understand your specific needs, helping you to secure the best deal for you and your family. To find out more, complete our call back form today!
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First, check that you’re eligible to purchase a property using the Shared Ownership Scheme. You can do this by asking your mortgage advisor or by reading the relevant government guidance.
Next, you’ll have to find a suitable shared ownership home that you like in your desired location. As with any property you’re interested in, you should view the home, make sure you’re eligible, and ensure you can afford the property.
You’ll be asked to pay a reservation fee to the landlord of up to £500. This secures the property for a fixed period and the amount is deducted from the final amount you pay on completion day. If you do not buy the home, you won’t usually get the fee back (check with the landlord before you reserve).
A mortgage advisor will help you to secure the most appropriate mortgage for your current needs and circumstances from a selection of lenders and understand your mortgage offer, while a solicitor or conveyancer will handle the process of ownership transfer.
What Is The Criteria To Apply?
To qualify for a Shared Ownership Scheme, your household income needs to be less than £80,000 per year. If you live in London, this must be less than £90,000.
You must be a first-time buyer, have a history of being unable to buy or are a current shared owner.
Applicants for the Shared Ownership Scheme must be at least 18 years old.
You must be a resident of the UK or if you are a non-UK citizen have indefinite leave to remain. You may be required to have local connections depending on some authorities’ requirements.
A deposit is needed (typically 5%), and you should have a good credit history.
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UK Mortgage Centre Limited is an Appointed Representative of Refresh Mortgage Network Limited. Refresh Mortgage Network Limited is authorised and regulated by the Financial Conduct Authority. We are entered on the Financial Services Register under firm number 1019794.
As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments. The Financial Conduct Authority does not regulate some forms of buy-to-let mortgages.
The Financial Conduct Authority does not regulate will writing and taxation and trust advice.
You may be charged a fee for your advice. A typical fee is £495, which would be payable when you receive your mortgage offer. Your dedicated advisor will discuss this further on your free initial phone call.
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