Selling a home with a shared ownership mortgages
It is crucial to understand that if you have a shared ownership mortgage, you do not own the entirety of the property. This means that if you wish to move and sell the property, your housing association has the first right of refusal for 21 years after you have made the purchase. They can, therefore, choose to find their own buyer, rather than your being able to sell your home on the open market. Over time, there is the potential to purchase a larger proportion, or all of, your home from the association. The timing of this process will depend on your circumstances and at which stage you are financially able to commit to purchasing a larger share of the property.
Key factors in shared ownership mortgages
As with any property, the value of your home will change with the property market. This means that the price you will have to pay to buy a larger percentage of your property may increase or decrease depending on the current market value at the time. The system is not the same as owning a property with friends or family members, so you need to understand your rights and obligations as a co-owner before deciding to proceed with a shared ownership mortgage.
Interest rates on shared ownership mortgages
Eligible applicants will find that different lenders offer different rates. These are usually somewhat different to standard mortgage rates, so obtaining a specific quote or offer for a shared ownership mortgage is important, as this will not be priced at any standard published rates. Factors that impact the interest rate you will be offered include the deposit you have available, what proportion of the property you wish to buy, and how affordable the mortgage is for you alongside the rental payments for the balance of the property.
Finding a shared ownership mortgage
Shared ownership is a scheme which has helped thousands of applicants get onto the property ladder, and secure affordable lending to help them purchase their own home. Not all lenders offer shared ownership mortgages, so it is important to make sure you have selected a lender who offers this type of mortgage product before proceeding with any applications. The first step of applying is to ensure you meet the criteria, and loan broker are specialists in the field. Give us a call and we will be happy to help you understand the process, identify whether you are eligible, and find the right lenders for you.
2023-05-09 
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