With shared ownership, you buy between 25% and 75% of a property and pay a subsidised rent on the remaining share. There might be the option to buy a bigger share in the property at a later date, potentially owning your home outright in the future. This is known as staircasing. Shared Ownership is an excellent way for you to become home owners, even if you don’t have the savings or income required to buy a property outright at this time.
These schemes do change quite often, especially between England and Wales so we can discuss whats available at the time. All Breakthrough Mortgages Advisers are professionally qualified. In addition to this, our Mortgage Advisers receive ongoing specialist Mortgage training to enable us to offer advice on these type of purchases. All of our advisers are locally based and are happy to meet you at your home, at a location that suits you, or via Zoom or phone appointments.
A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
How do shared ownership mortgages work?
You will be taking out a mortgage on the portion of the total value of the home you want to buy. This can be between 25-75% of the total home value.
For example:
- If you buy a 30% share in a £300,000 home, your share would be £90,000 and you would pay rent on the rest.
- The rent you pay will usually be 3% of the part of the value of your home you don’t own. To calculate the rent, you simply divide the housing association’s share of the equity by 100 and then multiply by three. This works out as £6,300 a year, or £525 a month, for the above example.
- You will need to put a deposit down, too. How much this is will vary, but it’s usually between 5% and 10% of the share you’re buying. So a 10% deposit on your £90,000 share would be £9,000