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Specialist Mortgages

For People Unable To Meet The Lending Criteria

Not everyone ticks the regular lending criteria boxes. At Agentis, we believe that shouldn’t mean you can’t get a mortgage. We have access to a range of more flexible lenders. To find out more about how specialist mortgages, including your options and how they could help you, read our guides.

Posted On: July 14, 2022

What Are the Benefits Of Shared Ownership Mortgages?

If you’re considering securing a Shared Ownership Mortgage, you’ll want to know what the benefits are and whether it’s worth your while. We’ve got you covered in this helpful guide.

  • More affordable

    They help house hunters get on the property ladder. An alternative mortgage solution for those that have been struggling.

    A smaller deposit makes this type of mortgage an attractive one. But with first-time buyer mortgages also offering lower deposits (5%), you may wonder how the shared ownership is different. With shared ownership schemes, deposits tend to be lower than what you can get on the open market. This is because you only pay a deposit on the share that you’re buying.

    For example: Let’s say you want to buy a house that’s £250,000. The traditional 5% deposit would cost you £12,500 – that’s quite the sum to save for. In comparison, with a Shared Ownership, you can choose to purchase 10% of the property. This would mean you only need to secure a 5% deposit on £25,000. This works out at a much more manageable £1,250.

    You will of course need to calculate and budget for the overall costs and consider the monthly rent payments. But, a smaller deposit makes getting a mortgage so much more affordable.

  • More accessible

    More affordable = more accessible. Speak to a Whole of Market mortgage broker to find out more.

  • Security

    This type of mortgage acts as a halfway house between renting and buying. However, you have the security that you are entitled to live in the property for the entire duration of the lease – which can be over 100 years. This is assuming you keep up on your repayments.

  • Potential to buy outright

    Known as ‘staircasing’, you are able to increase your shares over time. Some developers allow you to purchase all the way up to 100%.

Shared Ownership does have its limitations though. For starters, there are restrictions on the type of property you can buy. You can only purchase new-build homes or homes that have already been part of a shared ownership scheme.

You will also find that some schemes come with a cap on how much of the property you can own outright.

Speak to our Peterborough Mortgage Brokers about Shared Ownership Mortgages today. Book your free initial consultation.