Shared ownership offers people the chance to own a smaller percentage of their home, usually meaning their mortgage costs are a lot lower coupled with a rental payment. Many people have heard about shared ownership and some few confuse this with joint ownership or the thought of having to share your home with others. Do not fear this isn’t the case and we wouldn’t expect you to share your home with Jeff from down the road.
Simply put Shared ownership means you pay back your mortgage each month on a smaller percentage of the property along side paying an amount of rent to the Scheme Provider/Housing Association for the rest.
In principle for lower earning income households this may be a great option to get your foot on the ladder. We tend to find that this serves as a great backup if income doesn’t allow a client to achieve a standard mortgage.
Most providers will also allow you to purchase more of the property as time goes on. This means over time you can end up owning the whole of the property as income and affordability allows.
If you wish to know more about Self Ownership, please get in contact today.