Affordable Housing Scheme Mortgage
Secure your Shared Ownership or shared equity mortgage
Buying a house in the UK is a financial challenge. Many house prices are unaffordable for the average earner, and saving up for a large deposit may be unachievable. If you’re in this position, you may be using an affordable housing scheme, such as Shared Ownership or shared equity, to help fund your house purchase.
When you buy under an affordable housing scheme, you’ll need a specialist mortgage. That might sound challenging, but as experts in affordable housing scheme mortgages, we’re here to help.
Your affordable housing scheme mortgage
Getting a mortgage to buy your home under a Shared Ownership or shared equity scheme is relatively straightforward. However, these types of mortgages are only available via selected lenders, so you could waste time going to the wrong ones. Our mortgage advisers know which lenders to approach. They’ll also be able to help you prepare your application so it meets the lender’s criteria and manage the process through to completion.
With our help, the mortgage process will be simple, successful and stress-free.
For help securing your affordable housing scheme mortgage, get in touch for a free, no-obligation chat with a mortgage adviser.
Affordable Housing Scheme Mortgage FAQs
What is shared equity?
Shared equity schemes enable you to receive a loan from the government or a property developer to contribute towards your house deposit of a property. You then take out a shared equity mortgage to pay for the remainder of the property.
Shared equity enables you to buy a home with a small deposit with a lower-than-average mortgage. The scheme is ideal if you’re a first-time buyer struggling to save for a deposit.
How do shared equity mortgages work?
When you take out a shared equity mortgage, a provider gives you an ‘equity loan’ to boost your deposit. You’ll only need to save a 5% deposit, but overall, you’ll have a larger deposit that could qualify you for cheaper mortgage deals. You either pay back the equity loan in instalments or when you sell your property.
What are the drawbacks of a shared equity mortgage?
As the equity loan is tied to the property, the amount you don’t own will increase if the value of your property rises. This factor means shared equity schemes can become more expensive than a standard mortgage with the usual deposit. Also, if you have an unpaid shared equity loan, it can cause complications when you want to remortgage.
