If you are having difficulty saving for your mortgage deposit, government schemes may be able to assist you. There are various schemes available, each with their own unique benefits and qualifications. One such scheme is Shared Ownership, which allows you to purchase a percentage of a property and pay the rest back through rent.
As a mortgage broker in Bristol, we often see applicants wanting to purchase a property through the Shared Ownership scheme. Under this scheme, you can purchase a 10-75% share of the property, with the remaining percentage owned by the local authority or building society. In addition to your regular mortgage payments, you will also need to pay rent on the remaining share of the property through rent and any associated ground and service charges as the property will always be leasehold.
We will ensure that you meet the qualifications for the Shared Ownership scheme before proceeding with an application to avoid it being declined. You must meet the requirements of the scheme in order to be eligible to take out a mortgage via the Shared Ownership scheme:
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Shared Ownership allows you to purchase a percentage of a property through a mortgage and pay off the remaining portion through rent. Typically, the percentage of the property that can be purchased through a Shared Ownership mortgage ranges from 10%-75%.
For example, if you purchase a 65% share of the property, you will make mortgage payments on that 65% share and rent payments on the remaining 35%. Although you will have two payments, Shared Ownership can be a cost-effective option compared to renting or purchasing a property outright in Bristol.
When taking out a mortgage on a percentage of a property through Shared Ownership, you only need to make a deposit on that percentage. This means that the deposit required will be lower than if you were to put a deposit on the entire property.
For example, if the minimum deposit required is 5%, and you are purchasing a 10%-75% share of the property, the deposit will be cheaper than if you were to put a deposit on 100% of the property price.
If you have a poor credit history, you may need to consider an alternative to Shared Ownership. Most traditional lenders will not approve mortgage applications from individuals with bad credit.
There are specialist lenders that offer products tailored to those with low credit ratings. Our mortgage advisors in Bristol can assist you in exploring these options and finding a suitable mortgage deal for your specific circumstances.
It is important to note that in order to qualify for Shared Ownership, you must be a first time buyer and cannot own any other property. Additionally, Shared Ownership mortgages can only be obtained on new build properties and the property will always be leasehold.
You must be at least 18 years old and have an annual household income under £80,000 to qualify for a Shared Ownership mortgage in Bristol. If your income exceeds this amount, you will not be able to access the scheme.
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Book your free mortgage appointment online and speak with a mortgage advisor in Bristol.
We can discuss your eligibility for the Shared Ownership scheme and see whether it is the right option for you.
Once you have decided whether Shared Ownership is the right thing for you and you meet the scheme requirements, we can begin searching for deals to go with your new property.
If you are happy with the product that we find you, we can continue to prepare your mortgage application.
Once we have gathered all of your evidential documents to back up your income and overall affordability for a mortgage, we can submit your mortgage application.
We will keep you up to date with the progress of your mortgage application, making sure that you're kept in the loop.
After you've received the green light and have been approved, it is time to move into your new property!
We also want to make sure that you are covered and protected in the future, and will therefore give you a chance to take out insurance and protection alongside your mortgage.
Our team will also be back in touch when your fixed mortgage term is over and you are looking to remortgage.
We have extensive experience assisting home buyers in obtaining Shared Ownership mortgages and we would like to help you as well. During your free mortgage appointment, we can walk you through the process and determine if you qualify for the scheme.
With over two decades of experience in the mortgage industry, we have helped numerous customers fulfil their home buying aspirations.
We take pride in providing exceptional service and customer satisfaction is a top priority for us. Our dedication to finding the best deal for you is reflected in our positive customer reviews, which you are welcome to have a look at.
Our new online booking system allows you to schedule your free mortgage appointment at your convenience. With slots available seven days a week, including weekends, you can choose a time that works best for you.
We have access to a broad range of lenders, including both high street and specialist options. We will search through these options and find a mortgage product that aligns with your individual and financial circumstances.
Our mortgage advisors in Bristol are highly skilled and proficient in identifying the right mortgage for you. Contact our team at Bristolmoneyman today to learn about how we can assist you.
When obtaining a mortgage, there are few situations where a deposit is not required. With Shared Ownership, a deposit is necessary and the minimum amount can vary depending on certain factors.
One factor is the percentage of the property you are taking out a mortgage on. For example, if you are taking out a mortgage on 50% of a £300,000 property, you would typically be required to put down a deposit of 5% of that amount (£150,000), which would be £7,500.
Another factor that can impact all mortgage applicants, not just those applying for Shared Ownership, is credit score. Generally, if you have a low credit score, you will likely be required to put down a larger deposit on the property.
The process of increasing the share of a property one owns is referred to as "staircasing." A homeowner can approach the local authority and building society to inquire about the possibility of increasing their ownership share.
For example, if an individual initially owns only 10% of a property, they may have the option to purchase an additional 25% in the future if it is financially feasible.
Shared Ownership can only be used on properties that are owned by housing associations or builders. In some cases, the property that you are looking at may have been built for a Shared Ownership mortgage and you would not be able to take a regular mortgage out on it.
One of our mortgage advisors in Bristol will be able to check whether you are able to access the shared ownership scheme and run through whether it is the right direction for you to take. Book a free mortgage appointment today and get started on the process of Shared Ownership in Bristol.