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For many people, getting a large deposit can be difficult. A shared-ownership mortgage offers an alternative, as it typically requires only 5% of the share you’re buying.
Shared ownership is a great way to get onto the property ladder. It allows you to buy a share in a property and rent the rest, whether the property is a new build or one being sold by a housing association. You can normally buy between 25% and 75% of the property.
You’ll need to take out a mortgage from a lender who specialises in this type of loan. You’ll pay for your share of the property’s purchase price but, in time, you may be able to buy a greater share to get you to full ownership.
This depends on where you live in the UK. For England, you’ll usually need to be a first-time buyer with a combined household income below £80,000 outside London. Military personnel may also take priority.
When you can afford it, you’ll be able to buy more of the property and increase your investment. This is called ‘staircasing.’
If you’re interested in finding out more about shared-ownership mortgages, Melton Mortgage Solutions advisers can help you. Simply call 01664 494100 or click get started.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount will depend upon your circumstances.
The fee is up to 1% but a typical fee is 0.3% of the amount borrowed