If you're having trouble getting on the property ladder, a government scheme might be the solution. There are many options available to help you buy a property, and some may suit your situation better than others. The Shared Ownership scheme is unique in that it allows you to take out a mortgage on a portion of a property and pay the rest through rent.
As a mortgage broker in Cambridge, we frequently see people looking to buy a property through the Shared Ownership program. It works by allowing you to purchase a share of the propert. The share you can buy is usually between 25% and 75%. You can buy a 10% share on some homes. The rest is owned by the local government or builder, and you'll have to pay rent on the remaining portion, in addition to your regular mortgage payments. It's important to note that Shared Ownership homes are leasehold and you'll also have to pay ground and service charges.
"Before submitting your Shared Ownership application, we'll make sure you meet the eligibility criteria to avoid decline. To qualify for the scheme, you must:
If you need additional Shared Ownership mortgage advice in Cambridge, check out our YouTube explanation. We also answer common Shared Ownership questions below for more information on Shared Ownership mortgages in Cambridge.Apply Now
With Shared Ownership, you have the option of buying a portion of a property through a mortgage and paying for the rest through rent. Commonly, you can take out a mortgage on 10% to 75% of the property's value. For instance, if you opt to buy 65% of a property through a mortgage, you would make mortgage payments for that portion and pay rent for the remaining 35%. Despite having two payments, Shared Ownership in Cambridge may still be more cost-effective compared to getting a full mortgage or renting a property.
By choosing Shared Ownership, you only need to put down a deposit on the percentage of the property that you are taking out a mortgage on. This means that if the minimum deposit requirement is 5%, your deposit will be less expensive compared to putting down a deposit on the full value of the property.
If you have a poor credit history in Cambridge, Shared Ownership may not be an option for you. Most conventional lenders may not accept applicants with bad credit. However, don't worry, our mortgage advisors in Cambridge are equipped to assist you in finding alternative solutions. We have access to specialist lenders that offer mortgage options for those with bad credit or low credit ratings. Get in touch with us today to discuss how we can help.
Shared Ownership requires you to make regular mortgage payments to pay off your portion of the property and rental payments for the portion owned by the housing association. Eligibility for the program requires you to be a first time buyer and not currently owning any other property. Additionally, the Shared Ownership program only applies to new build properties, which will be leasehold.
To be eligible for a Shared Ownership mortgage in Cambridge, you must be 18 years old or older and have a household income under £80,000 per year. Higher incomes may disqualify you from the program.
As a mortgage broker in Cambridge, we have assisted many individuals in obtaining a Shared Ownership mortgage. This scheme provides a valuable opportunity for those seeking to enter the housing market but face difficulty saving for a down payment. In addition to Shared Ownership, we can also assist with other Help to Buy mortgage options. Our mortgage advisors in Cambridge are available to discuss and evaluate these options with you, ensuring that you make the best decision for your unique circumstances.
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During your appointment, your mortgage advisor in Cambridge will assess your income and expenses to determine your mortgage affordability and eligibility for a Shared Ownership mortgage in Cambridge.
Our team will scour over 1000 mortgage options to find the best one for you. We will assist you in obtaining a mortgage agreement in principle, which serves as a strong support for any new build offers you make.
Once your purchase offer is approved, we will complete the submission of your mortgage application and all required supporting documents to the lender.
During the entire process, your assigned case manager will keep you informed and updated, from the receipt of the mortgage offer to the final completion and beyond.
Our service is comprehensive and goes beyond securing the best mortgage deal for you. We'll also suggest appropriate insurance to safeguard you and your loved ones, and keep in touch with you when your mortgage term expires to ensure you always have the best deal in place.
For years, we have been assisting home buyers with Shared Ownership mortgages and we are eager to help you as well. Your free mortgage appointment is an opportunity for us to go over the process and determine if you meet the eligibility criteria for the scheme.
With over 20 years of experience in the mortgage industry, we have helped numerous customers fulfill their homebuying aspirations. Providing excellent customer service is a top priority for us, and we take pride in our work. Our dedication to finding you the best mortgage deal is evident in our positive reviews. Please feel free to peruse some of them.
You can now easily schedule your free mortgage appointment using our online booking system. We offer appointments 7 days a week, including weekend slots if that's more convenient for you.
We have access to a vast network of lenders, including both mainstream and specialist options. Our role is to search this pool of lenders to find you the ideal mortgage product that fits your personal and financial circumstances.
Our highly skilled mortgage advisors in Cambridge are experts in finding the right mortgage for you. Contact Cambridgemoneyman today to see how our team can assist you.
To obtain a mortgage, a deposit is usually required unless there are exceptional circumstances. With Shared Ownership, a deposit must be made, and the minimum amount depends on various factors.
The amount of the property you're mortgaging influences the deposit, for example, if you mortgage 50% of a £200,000 property, a deposit of approximately £20,000 (5% of the value) would be expected.
Your credit score is another factor affecting the deposit, with a low score leading to a higher deposit requirement for all mortgage applicants, including Shared Ownership.
The process of increasing one's ownership share in a property is referred to as "staircasing." A homeowner can request to escalate their ownership by contacting the local authority or building society.
For instance, if the homeowner initially only owns 10% of the property, they have the possibility of purchasing an additional 25% if it becomes affordable in the future.
Whether or not the option to purchase in the future is discussed during the initial purchase is at the discretion of the parties involved.
As all Shared Ownership homes are leasehold, you need to factor in ground and service fees, in addition to your mortgage payments and rent.
Obtaining a mortgage also incurs costs such as property surveys, legal fees, and broker fees. To avoid potential problems with your future home, it's recommended to choose an in-depth property survey, even if it's more expensive. An overlooked issue could negatively impact the property's value in the long run. A mortgage advisor in Cambridge can advise you on the best survey option.
The Shared Ownership Scheme only applies to properties owned by housing associations or builders. Some properties are constructed solely for Shared Ownership mortgages and may not be eligible for traditional mortgage options.
Our goal is to educate you on the entire Shared Ownership process, including its benefits and how to get started to finding you the most suitable mortgage deal. Schedule a free mortgage appointment today and take the first step towards Shared Ownership in Cambridge.