How Do Shared Ownership Mortgage Brokers Work?

Understanding Shared Ownership Mortgages

Shared ownership is a highly useful tool for home buyers looking to enter the property market with limited funds. Shared ownership allows home-buyers to purchase a share in a property while paying rent on the remaining unowned share. The share purchased will usually range between 25% and 75%. Shared ownership mortgages differ from traditional mortgages in a number of ways and it is important for borrowers to understand how they work prior to embarking on their shared ownership journey. In this way, the services of an independent mortgage broker can prove useful. Independent mortgage brokers can help their clients understand the intricacies of the share ownership scheme and how to navigate them.

The Role of a Shared Ownership Mortgage Broker

A commercial mortgage broker specializing in shared ownership plays a vital role in assisting buyers with securing finance. This includes:

• Assessing Eligibility: Brokers help determine if buyers meet the criteria set by housing associations and lenders.
• Sourcing the Best Lenders: Not all mortgage lenders offer shared ownership products, but a broker has access to a broad range of options.
• Guiding Through the Application Process: Ensuring all financial documentation is prepared correctly to improve approval chances.
• Advising on Staircasing: Helping buyers understand how they can increase their ownership percentage over time.

Benefits of Using a Mortgage Broker for Shared Ownership

• Access to Exclusive Deals: Independent brokers can find competitive rates and lender-specific deals that may not be available to the public.
• Simplifying the Process: Shared ownership can be complex, and a broker helps streamline the process from start to finish.
• Expert Financial Advice: Brokers assess affordability, explain terms, and ensure buyers make informed decisions.

Common Challenges in Shared Ownership Mortgages

• Limited Lender Availability: Not all banks and lenders provide shared ownership mortgages.
• Strict Eligibility Criteria: Income limits, employment status, and residency requirements must be met.
• Future Planning Considerations: Buyers must factor in potential staircasing costs and the impact of future mortgage payments.

A shared ownership mortgage broker is essential for navigating the complexities of this scheme. Whether you’re a first-time buyer or looking for a structured path to full homeownership, working with an independent mortgage broker ensures you secure the best deal tailored to your needs. Get in touch today to explore your shared ownership mortgage options.