What is a Shared Ownership Mortgage in Cambridge?

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How Does Shared Ownership Work?

Shared Ownership Eligibility

Applying for a Shared Ownership Mortgage

Pros and Cons

As a trusted mortgage broker in Cambridge, we specialise in helping customers get a mortgage in Cambridge through the Shared Ownership scheme. Established under the Housing Act 1980, this government initiative aims to assist UK residents in purchasing their dream homes.

How Does Shared Ownership Work?

The Shared Ownership Scheme allows you to acquire a portion of a property, sharing ownership with a housing association. Typically, you can purchase between 10% and 75% of the property, while the housing association retains ownership of the remainder. By taking out a mortgage on your share, you pay a reduced rent on the remaining portion, making homeownership more affordable.

Shared Ownership Eligibility

To qualify for the Shared Ownership scheme, you must be a permanent UK resident, either a first-time buyer or a home mover in Hull. Additionally, your total household income should be less than £80,000 (£90,000 in London). Most properties available through Shared Ownership are leasehold, meaning they are owned for a specific period.

In recent years, the scheme has become more accessible. The minimum share requirement has been lowered from 25% to 10%, enabling more individuals to take advantage of this opportunity. Moreover, landlords now cover maintenance and repair costs during the first decade of ownership.

Applying for a Shared Ownership Mortgage in Cambridge

To determine your eligibility for the Shared Ownership Scheme, we recommend consulting with our expert mortgage advisors in Cambridge. They will assess your affordability, financial situation, and personal circumstances to guide you in making an informed decision. If Shared Ownership is not the ideal route for you, we will provide alternative options.

Our dedicated team will outline the costs associated with Shared Ownership and help you determine if it aligns with your specific needs and circumstances. Transparency and honesty are central to our service.

Pros and Cons of Shared Ownership Mortgages in Cambridge

As with any mortgage, Shared Ownership has its pros and cons. On the positive side, the deposit amount is based on the percentage of the property you are purchasing. Future opportunities to buy additional shares may also be available, subject to specific conditions. However, paying higher rent on a lower share and seeking permission for structural changes are potential drawbacks.

Selling a Shared Ownership Property in Cambridge

Selling a Shared Ownership property differs from selling a traditional home. In most cases, you must own 100% of the property to sell it, as the housing association retains partial ownership.

Is Shared Ownership Right for You?

Shared Ownership is an excellent option for first time buyers in Cambridge struggling to save for a deposit and meet conventional mortgage requirements. The lower deposit requirement makes homeownership more accessible. However, the availability of properties eligible for Shared Ownership can sometimes complicate the process. We will ensure you have a comprehensive understanding of Shared Ownership in Cambridge before making a commitment.

To explore the possibilities of a Shared Ownership mortgage, book a free appointment with our mortgage advisors in Cambridge. We offer flexible scheduling, including weekends, to accommodate your needs. Our team is committed to guiding you through the process and helping you achieve your homeownership goals.

For more information on the Shared Ownership Mortgage Scheme, visit the government’s OwnYourHome website.

Date Last Edited: February 19, 2024