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Mortgage360 are here to help you make the right choice.

Here at Mortgage360 we pride ourselves on offering tailored advice, coupled with great service. We are mortgage experts, so you can rest assured that you are in safe hands when searching for your new mortgage, whatever your situation may be.

Key Benefits

We are committed to guiding you through one of life's most significant financial decisions.

When it comes to securing the right mortgage, our expert team is here to ensure that you make informed choices tailored to your unique needs.

We understand the market – we’ll advise on how to secure a shared ownership mortgage to get you on the property ladder.
We’ll advise on specialist schemes and lenders to match your requirements.
We’re here if you want to increase your ownership stake in the future.

For many people, particularly those on a low income, the dream of being a homeowner can seem out of reach in terms of saving a deposit then securing the right mortgage deal.

Shared ownership mortgages and shared ownership properties were first introduced back in 1980 with the Housing Act 1980, to help people who could not afford to buy a home outright. This government scheme was originally designed to help low income families onto the housing ladder.

House prices have continued to rise. Today, shared ownership mortgages provide a real opportunity for first time buyers, and not necessarily from low income households.

A shared ownership mortgage enables you to buy a share of a property, typically anything from 25-75%. This means a lower deposit, a smaller mortgage and smaller mortgage repayments, which can make taking the first step onto the property ladder easier, quicker and more affordable.

There is usually the opportunity to buy a larger share of the property as time passes, meaning at some stage in the future you may own the entire home.

Here’s an example

A shared ownership mortgage provides an opportunity to make that all-important step towards buying your own home. It’s a hybrid option between buying and selling – the home remains the property of a housing association, and you will pay rent on the percentage that you don’t own, which isn’t covered by your mortgage repayments.

Over time, you have the opportunity to ‘staircase’. As you save or as your income increases, you can increase your percentage ownership of the shared ownership property. This means your mortgage payments will increase, but your rent will decrease proportionately.

Here’s how it works in principle.

  • If you want to buy a 25% share in a £200,000 home under a shared ownership arrangement, your share of the property will be £50,000.
  • You will typically need a deposit of 10% of the value of your share, at £5,000.
  • The housing association owns the remaining share at £150,000.
  • You will need a mortgage of £45,000
  • The rent on the remaining 75% of the property will be subsidised as housing associations charge less than the private rental market. The monthly cost you will pay for the mortgage and the rent will typically be less than renting, and you are also buying a share of the property at the same time.

There are also schemes available which means some buyers don’t need to find a deposit.

Benefits of a shared ownership mortgage

Shared ownership is a valuable option for those on a low income, first time buyers and people struggling to put together a sizeable deposit whilst already paying significant amounts on rent

  • There are zero deposit options available
  • As the property increases in value, you benefit as the value of your share increases too
  • Although you will pay rent, a shared ownership mortgage is usually cheaper than private property rentals, and you’re paying off your share too with your monthly mortgage payments
  • You usually don’t have to pay stamp duty on your house purchase until your share exceeds 80%
  • You may be able to afford a larger property and also in a sought-after area, as some housing developments are required by planning permission to include shared ownership properties under their affordable housing commitments

Drawbacks of a shared ownership mortgage

  • You don’t own the whole property with a shared ownership scheme
  • You have to live in the property – you can’t rent it out
  • Shared ownership mortgages can be difficult to secure
  • You can’t just decide to sell shared ownership properties, you have to offer it first to the housing association owning the remaining share
  • These properties are usually leasehold so may attract monthly service charges and ground rent which will need to be factored into your overall affordability

As with any property, if you default on your shared ownership mortgage/rent payments, your home may be repossessed.

What are the considerations before applying?

Deciding whether a shared ownership mortgage is the right route for you is dependent upon your personal circumstances. It’s a partnership providing an affordable housing opportunity for people who probably wouldn’t qualify for the mortgage on the entire property otherwise.

  • There will be fewer choices of property available in most areas, but these will not be in undesirable areas, as some people think
  • The price you pay to ‘staircase’, or increase your share, will rise and fall with the market value of the property

It’s a big financial decision. Here at Mortgage360, we can help you to look at the options, and your choices and help you on the road to securing a shared ownership mortgage and your first step on the property ladder.

Affordability Calculator

Stamp Duty Calculator

Repayment Calculator

What are the eligibility criteria for a shared ownership mortgage?

Let’s take a closer look at the criteria for shared ownership and shared ownership mortgages. You can qualify to buy a home through shared ownership if both of the following are true:

  • You must be at least 18 years old
  • Your household income must be £80,000 a year or less (£90,000 a year or less in London)
  • You cannot afford all of the deposit and mortgage payments for a home that meets your needs

At least one of the following must also apply:

  • You’re a first-time buyer
  • You once owned a property but can’t afford to buy again
  • You’re forming a new household, maybe after a relationship breakdown
  • You’re already benefiting from shared ownership and you want to, or need to move
  • You own a home and want to move but cannot afford a new home that meets your needs

Remember it’s not possible to get a shared ownership mortgage on any home on the market, only on certain properties, which are usually purpose-built for shared ownership sale.

Before you can apply for a shared ownership mortgage and acquire a shared ownership property, you’ll need to chat with your local Housing Association to see what schemes are available where you live and if you’re eligible for them. You’ll also need to register on an official Shared Ownership scheme.

Can you remortgage a shared ownership property

A shared ownership mortgage is a conventional mortgage product so yes, you can remortgage a shared ownership property. However, as you only own a percentage of the property, you can only remortgage against that percentage.

Your options will be limited because only a few lenders offer shared ownership mortgages, and often only through intermediaries. Obviously, you need the agreement of the Housing Association which owns the remaining share of the property.

Talk to our advisers at Mortgage360 if you want to remortgage a shared ownership property. We’ll talk through your personal circumstances and provide you with advice and recommendations.

As with any mortgage deal, the most suitable one for you will depend entirely on your individual circumstances. Our expert mortgage advisers can help you find the right shared ownership remortgage deal.

What happens if I want to sell?

First, you need to talk to the Housing Association about first refusal on the shared ownership property. The price will be set by the Housing Association’s own valuer, and when the house is sold, you’ll receive a share based on your percentage share of the property value.

The Housing Association will agree to a period of time to market the property. If they don’t sell it within that time, you will be allowed to put it on the open market.

How do I get a shared ownership mortgage?

Start by registering with your local shared ownership scheme, which means you have access to the properties being marketed under the scheme.

This will involve a financial assessment meeting with the Housing Association, which will establish what share you can afford based on your individual circumstances, and also how much rent you may need to pay.

Then it’s time to contact us at Mortgage360. There are a limited number of shared ownership mortgage lenders offering shared ownership mortgages, so we can provide advice on specialist mortgage providers and help you get on the property ladder to secure your own home!

FAQ’s

How does loan to value work with shared ownership mortgages?

With shared ownership mortgages, the loan to value (LTV) works differently than on standard mortgages. The LTV isn’t calculated on the whole value of the property, just the portion you are buying.
 
For example, if you were buying a 50% share of a flat worth £200,000 you would need to stump up £100,000 from a combination of mortgage and deposit. So, if you have a deposit of £10,000 then you’ll need £90,000 in mortgage – making the loan to value 90%.
 
With shared ownership mortgages you’ll usually need at least a 5% deposit of your share of the property.

How do I increase my share in my shared ownership home?

Once you have bought your initial share, you can choose to buy a bigger stake in future. This process is known as “staircasing”. You could even staircase up to 100% ownership if you can afford it, and if the housing association allows 100% ownership. To explore your options, simply contact Mortgage360 and our experts will be on hand to help.

Can I sell my shared ownership home?

Yes. However, if you own less than 100% of your home, you’ll need to contact your provider to tell them and you’ll also need to organise a RICS valuation of your property (and pay for it) to determine its value. Your provider will have a period of time (usually 4 to 12 weeks) when they can exclusively market your property. If your provider doesn’t find a buyer, you can sell the property through an estate agent.
 
Once you own 100% you should be able to sell your property on the open market. However, if your property is still leasehold check your lease first, some require you to offer the property back to the housing association first.

Shared Ownership Mortgage Broker

Here at Mortgage360, we can provide expert advice on all your mortgage and insurance needs.

Whether you’re ready to get started on your journey now, or you’d just like a no obligation consultation, we’d love to hear from you…

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Pippa Lister
April 11, 2024

Gavin at Mortgage 360 was superb throughout. He responded quickly to any questions or queries we had, worked round our busy work life with evening zoom meetings and kept us regularly updated. He made the whole process straightforward and clear. Thank you Gavin

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M Wick
April 10, 2024

Matt at Mortgage360 is an amazing broker. He was always on hand to lend support and offer calm and well explained help. As a first time buyer, his help was always appreciated and the service which they offer is top notch. I could not recommend mortgage360 highly enough

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Stormin' F
March 13, 2024

I cannot recommend Gavin more highly for his invaluable and trustworthy expert support in navigating through the mortgage process. I have used Gavin’s services several times over the years and he had always gone above and beyond the call - thanks Gavin.

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Ash Gibbs
March 9, 2024

Gavin has helped us to no end. Brilliant service and he was willing to go the extra mile to ensure we got the very best deal.

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Ross McWilliams
February 22, 2024

Our experience using Mortgage360 has been absolutely brilliant. Matt has been there for us and supported with our mortgage application every step of the way, with an excellent outcome. Thank you for everything - you’re a star!

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Jonathan Bush
February 16, 2024

Gavin arranged my Mortgage for my first home and i couldn't have been happier with the service received, explained things in great detail and communicated efficiently. I would recommend Mortgage360 to anyone in need of mortgage advice and I will be definitely using them in the future.

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Nigel Porritt
February 15, 2024

I contacted Mortgage360 I was looking for help with the purchase of my first home. They were great at explaining all of my options, taking time to ensure I understood everything fully and constantly provided updates throughout the whole process. I couldn’t have asked for a better service and would highly recommend them. Thanks Gavin and Matt!

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Richard Espin-Bradley
February 9, 2024

Matt Illingworth was superb! Readily available on the phone, or always called back within a short space of time. Made plenty of time to discuss our needs and never tried to hurry us into making decisions. His advice was clear and helpful.

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James Hall
February 9, 2024

Gavin at mortgage360 has been outstanding, gives incredibly in depth information about all things mortgage related. Has helped us secure a mortgage at a better rate than we could have got ourselves, saving us lots of money. He made the whole process as stress free as possible and provided all templates for files we needed to send and always got back to our queries within a couple of hours at maximum. If I could give more than 5 stars I would. Keep it up Gavin!

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
MOST BUY-TO-LET MORTGAGES ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.

There may be a fee for arranging a mortgage. The precise amount will depend upon your circumstances, however we estimate this to be between £200 and £600.