Buying a house for the first time can seem daunting, especially if you’re unsure what you’re letting yourself in for. After all, there’s a lot
Buying a house for the first time can seem daunting, especially if you’re unsure what you’re letting yourself in for. After all, there’s a lot
With the Shared Ownership Scheme, you could purchase a percentage share of a property while paying rent on the remaining amount. A potentially more affordable route to home ownership, over time, you can work towards owning 100% of the property.
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.
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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 is a trading style of Refresh Mortgage Network Limited. Refresh Mortgage Network Limited is authorised and regulated by the Financial Conduct Authority. FRN – 826982. Registered in England & Wales: 11614569. 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.
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