Shared Ownership Mortgages
Shared ownership mortgages allow you buy a share of the property and pay rent on the remaining portion, usually to a housing association, when property is not affordable to purchase outright. Should affordability allow, individuals can gradually increase towards full ownership over time, a process known as staircasing.
|Mortgage Product||Term||Initial Rate1||Overall Cost for Comparison2||Max LTV3||ERC4||Product Fees|
Shared Ownership 2 Year Discounted Rate House Purchase Only - SO-011
|2 years||Currently 4.49%||5.7% APR||75% property value, 95% of share being purchased||2%||£199 application fee|
Shared Ownership 2 Year Fixed Rate House Purchase Only - SX-007
|2 years||4.99%||5.7% APR||75% property value, 95% of the share being purchased||2%||£199 application fee|
1 The Initial Rate is the rate available during the initial term of the mortgage. Once the initial rate term has expired, the mortgage will revert to our Standard Variable Rate (SVR).
Our SVR is set by us and is currently 5.59%, as a variable rate it may go up or down.
2 The Overall Cost for Comparison is given as the Annual Percentage Rate (APR) and includes all charges incurred relating to the mortgage. It is an interest rate that all lenders must quote on mortgage related financial promotions when an interest rate is mentioned. The APR is intended to help you as a borrower compare the interest rates on different products.
3 Like all other mortgage lenders, we will allow you to borrow against a proportion of the overall property value. This is known as Loan to Value (LTV) and is expressed as a percentage. For example, if you want to purchase a property at £100,000 and you would like to borrow £85,000, then you will need a mortgage available at 85% Loan to Value (LTV). The available LTV can vary depending upon the type of mortgage.
Shared Ownership mortgages will offer two percentages under LTV - the proportion of the property value and the proportion of the share being purchased.
4 ERC stands for Early Repayment Charge and refers to a charge that is sometimes applied if all or part of a mortgage is paid, over and above the usual monthly payments, during the initial term.
Unless otherwise stated, products are available for house purchase or remortgage.