Shared Ownership Mortgage
Unlock Affordable Homeownership
Shared ownership mortgages offer an affordable way to step onto the property ladder, especially for first-time buyers. At Possible Mortgages, we specialise in making the shared ownership process simple and hassle-free, guiding you every step of the way.
What is Shared Ownership?
Shared ownership is a government-backed scheme that allows you to buy a share of a property (typically between 25% and 75%) and pay rent on the remaining portion. Over time, you can "staircase" to increase your ownership share, eventually owning the property outright.
Benefits of Shared Ownership:
Lower Initial Costs: Buy a share of the property instead of the entire home.
Easier Mortgage Approval: Smaller loans are easier to qualify for.
Flexible Ownership Options: Increase your share over time.
Access to New Build Homes: Many shared ownership schemes are available for modern, energy-efficient properties.
How Much Deposit Do I Need for a Shared Ownership Property?
The deposit required for a shared ownership property is calculated based on the share you are purchasing, not the full property value.
For example:
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If the full property value is £200,000 and you are purchasing a 25% share, your share would be £50,000.
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A 5% deposit on £50,000 would amount to £2,500.
This significantly lowers the upfront cost compared to buying the full property outright, making shared ownership an accessible option for many buyers.
Why Use a Mortgage Broker for Your Shared Ownership Mortgage?
6 Benefits of Using a Mortgage Broker
Expert Guidance
Mortgage brokers specialize in navigating the mortgage process, helping buyers understand options, terms, and requirements without jargon. Their expertise makes the journey smoother and less stressful.
Help with Complex Applications
If you have unique circumstances, such as being self-employed or having a low credit score, a broker can identify lenders with flexible criteria and advocate on your behalf.
Access to More Lenders
Unlike banks, brokers have access to a wide range of lenders and exclusive deals. This increases the likelihood of finding a mortgage tailored to your specific needs and circumstances.
Personalized Advice
Brokers offer tailored recommendations based on your financial situation, long-term goals, and preferences, ensuring you choose the best mortgage for your needs.
Save Time and Effort
A broker does the heavy lifting for you, comparing mortgage products, handling paperwork, and managing lender communication, saving you time and reducing hassle.
Better Mortgage Rates
Mortgage brokers often have access to exclusive rates and deals that aren’t available directly to the public, helping you secure a more affordable mortgage.
Document Checklist for Shared Ownership Mortgage
1. Proof of Identity
Lenders need to verify your identity. Provide one of the following:
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Valid passport
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Driving license (with your current address)
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National ID card (if applicable)
2. Proof of Address
Confirm your current address by submitting at least one of the following:
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Utility bill (dated within the last 3 months)
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Recent bank or credit card statement
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Council tax statement
3. Proof of Income
Your income will determine your affordability for a shared ownership mortgage. Gather the following based on your employment type:
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Employed Applicants:
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Last 3 months’ payslips
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Latest P60
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Employment contract (if recently started a new job)
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Self-Employed Applicants:
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Last 2-3 years’ tax returns (SA302 forms)
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Accountant-prepared financial statements
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Recent bank statements showing income deposits
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4. Bank Statements
Provide 3-6 months of bank statements to demonstrate:
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Regular income deposits
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Monthly expenses and financial commitments
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Financial stability
5. Proof of Deposit
Show evidence of your deposit, whether from savings, a gift, or a bonus. Acceptable documents include:
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Savings account statements
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Gift letter (if applicable)
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Documentation of any bonuses or other funds
6. Shared Ownership Scheme Documents
For shared ownership applications, you’ll need to provide:
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Shared ownership scheme application or agreement
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Eligibility certificate or reference from the housing association
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Details of the property share percentage you intend to purchase
7. Rent Information
Since you’ll be paying rent on the remaining share of the property, provide:
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Estimated monthly rent (provided by the housing association)
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Any additional service charges (if applicable)
8. Additional Documents
Depending on your circumstances, lenders may also request:
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Proof of additional income (e.g., rental income, dividends)
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Details of loans, debts, or financial commitments
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Information on other properties owned (if applicable)
9. Credit History
Lenders will check your credit score and history to assess your financial responsibility.
10. Conveyancer Details
You will need to provide your conveyancer's details when applyin forg a mortgage. Find your conveyancer here.
