When it comes to buying a house, everybody’s story is different. Nowadays there are many options for those who want to buy their dream home, but struggle to save the thousands for a deposit. A shared ownership mortgage was introduced to relieve this stress and provide people with the opportunity to still purchase their dream home. To find out if you’re eligible for a shared ownership mortgage or to know more about it, we thought we would provide you with the basics.
What is a shared ownership mortgage?
A shared ownership mortgage is a government scheme which is primarily focused on helping people to get onto the property ladder, whereby the `homeowner` part owns and part rents the property. This enables people to have lower mortgage repayments to make each month and over time allows you the option to buy off the `rented` part of the property if desired.
With shared ownership, also known as part buy/part rent mortgage, you will own between a quarter and three-quarters of the property, that you can increase/completely buy out at a later date.
A shared ownership mortgage is only applicable to some properties, with many new build options or re-sold properties from a housing association. The mortgage can cover anything from 25% up to 75%, all down to what you can afford.
Am I eligible for shared ownership mortgage?
In order to be eligible for a shared ownership mortgage in Northern Ireland the criteria will vary within each financial association. However, there are a few essentials to meet overall.
As this scheme is to help people get onto the property ladder, it makes sense that you must be a first-time buyer or a current homeowner who cannot afford to purchase a new property. You must also currently live in and have the right to reside in Northern Ireland.
To determine the loan amount, lenders will most likely multiply your income by three to see what you can afford. Requirements commonly require that you have had no home credit within the last 12 months or Payday Loans.
Are shared ownership mortgages easier to get?
Like other mortgage schemes, allowance can depend on several factors. Credit score will most likely be considered and can determine the result of your application process. Mortgage acceptance will depend on the lenders terms and conditions, with some lenders providing the option of paying a higher deposit or payments at a higher interest rate, depending on your credit score.
How can Mortgage Solutions Belfast help you apply for shared ownership mortgage?
We know that it can be an overwhelming experience applying for a mortgage loan and something that requires expert guidance. At Mortgage Solutions Belfast we are here to take you every step of the way. Our team will provide you with your own dedicated mortgage advisor who will be with you from start to finish, ensuring you have all the assistance required to make your new home purchase as easy as possible.
Understanding your needs and circumstances, your advisor will search a panel of lenders for all shared-ownership mortgage products available and therefore determine your best option.
Your advisor will represent you, dealing directly with your lender, estate agent and solicitor throughout the process. Paperwork will also be completed and covered by your advisor, who will be at hand for any questions or support.
Get in touch with us now and get your application started.
Your home may be repossessed if you do not keep up your repayments on your mortgage.
Some buy to let and let to buy mortgages are not regulated by the Financial Conduct Authority.