Are you finding it difficult to get on the property ladder?

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Are you finding it difficult to get on the property ladder? It could be that your earnings are not high enough to enable you to obtain a mortgage which is sufficient to buy a property or the high cost of renting means that you just don’t have any spare money to put away for the huge deposit needed. The answer could be a shared ownership mortgage.

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The shared ownership mortgage scheme works by property buyers ‘sharing’ the ownership of the property. On the initial purchase you will typically buy 25/50/75% of the total property value. The remaining 75/50/25% of the property is owned jointly, usually with a housing association. They charge you a ‘rent’ for the section you do not own.

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The main benefit of getting a shared ownership mortgage is that you get a foothold on the housing ladder and benefit ftrom the increase to the value of your ‘share’.

Also these schemes are unique in that you can ‘staircase’ up your ownership of the property; meaning you have the ability to buy additional sections of the property at a later date. Therefore you can start off by buying 50% of the property initially, then in 2 years buy another 25% and finally the last 25% so you own the entire property. This saves you the cost of having to ‘size up’ during your working life. As you increase your ownership of the property your rent decreases to reflect the increased ownership.

Conditions vary from scheme to scheme so make sure you are happy with the terms you sign up to at the start. We can help you with this.

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As shared-ownership is a niche mortgage sector not all mortgage lenders are willing to lend on these developments. So, rather than trawling the high street only to find a particular lender doesn’t lend on this type of scheme, you could save time and potentially a large amount of money, by contacting us and getting the right mortgage for your situation. Let us help you get the keys to your new home.