Shared Ownership Programmes: A Pathway to Homeownership

As property prices rise, shared ownership scheme offers a solution for those unable to buy a home outright. The programme enables buyers to purchase a portion of a property, typically between 10% and 75%, and pay rent on the remaining share. Over time, they can buy additional shares, eventually owning the home fully.

How It Works?

• Aimed at first-time buyers or those with a household income below £80,000 (£90,000 in London).

• Buyers secure a mortgage for their share and pay a smaller deposit calculated on the price of the share bought.

• Reduced rent is paid on the unsold share, lowering monthly costs.

•  Buyers can purchase more shares as their finances improve in future. This is called Staircasing.

Benefits

• Lower Costs: Smaller deposit and mortgage reduce the initial financial burden.

• Path to Full Ownership: Provides a structured way to own a home outright.

• Security: More stability compared to private renting.

• Flexibility: Buyers can increase their ownership stake over time.

Considerations

• Charges: Buyers may need to pay 100% of service charges and ground rent.

• Valuation Costs: Staircasing and resale involve valuation fees.

• Restrictions: Criteria for buying more shares or selling can limit flexibility.

Shared ownership programmes can help turn the dream of homeownership into reality by making it more accessible and affordable.

If you would like to ask us about a Shared Onwership Mortgage - give us a call or email us.

GRN Financial Services Limited is an Appointed Representative of PRIMIS Mortgage Network, a trading name of Personal Touch Financial Services Ltd. Personal Touch Financial Services Ltd is authorised and regulated by the Financial Conduct Authority.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Buy Now Pay Later can affect your mortgage application!

Did you know that a Buy Now Pay Later (BNPL) activity could affect your mortgage decision. Why?

• This is a financial committment that gets reported on your credit file. Make sure it is set up as a direct debit and do not miss any repayments.

• Relying on BNPL may be seen by mortgage lenders as not managing your finances too well, especially if there are multiple BNPL activities on your account.

• Only use it when you are absolutely sure you can pay it off

• Every now and then, monitor your credit report to check that no errors have been marked against your account.

If you have used BNPL and would like to check your mortgage readiness, do get in touch with us.

No deposit mortgage available now!

YES, IT IS POSSIBLE. TODAY A NEW PRODUCT HAS BEEN INTRODUCED FOR A 100% MORTGAGE FOR FIRST TIME BUYERS

This, however, is not a product for everyone…

Main criteria:

• each applicant must be a first time buyer

• each applicant must be 21 years old or older

• the same people who are and have been renting in the last 12 months must go on the mortgage application

• applicants must have proof of paying rent for at least 12 months out of the last 18 months

• applicants must also have been paying the household bills in the 12 months out of the last 18 months

• each applicant must have good credit history with no missed payments/direct debit commitments in the last 6 months

• the monthly cost of mortgage must be equal or less than average of the last 6 months rental cost

• deposit must be less than 5% - can be £0!

• maximum loan size must be £600000

• not available on new build flats

• applicants must pass lender's affordability test and credit score check

This product may be a great help for many first time buyers but any buyers who want to check if they qualify, should first speak to a mortgage adviser before making offers on properties Buying a house requires planning ahead and strategy and a good mortgage adviser will help you prepare for this step Contact us if you are planning to buy your first home.