Shared Ownership Mortgages UK

Shared ownership mortgages UK

In the United Kingdom (UK) shared ownership is alive and well and a unique way of "part-owning or part-renting" a property specifically designed for folks who simply cannot afford to buy a home of their own. Housing associations in the UK are the initial contact point and there are two ways to do that. Government backed and privately-operated schemes.

Here Is How Shared Ownership Works!

The applicant can purchase a share between 25 percent and 75 percent of the market value of the property with a mortgage. Then you pay rent on the remaining portion of the property which is owned by the local housing association. Keep in mind that the applicant will have to pay what's called a "service charge" (in America it's called a "homeowner association fee) on a monthly basis. You should also be advised that some schemes specifically target social tenants as well as those who wish to first save for the initial deposit. Other properties only target "key workers" aka known as nurses and teachers.

How You Can Get A Shared Ownership Mortgage!

Not all UK lenders provide mortgages for shared ownership but many of the major lenders will be able to accommodate your request. Also, the housing association may be able to recommend mortgage advisors with the knowledge of dealing with this unique type of home ownership.

Note: Just like in America there are problems in dealing with any type of loan. Ergo, the UK has their share as well. That said, the key in avoiding any risk is to understand all the paperwork. For more tips click on shared ownership mortgages uk.