Shared Ownership

Shared Ownership

Are you dreaming of owning a slice of the property pie, but finding it hard to take that first step onto the property ladder? Shared Ownership could be your ticket to making that dream a reality! Welcome to Thomas Honour Mortgage Services, your trusted partner in navigating the world of Shared Ownership mortgages.

What is Shared Ownership? 

Shared Ownership is a government-backed initiative designed to help first-time buyers and those with limited budgets to own a share of a property. It’s an ingenious solution that combines the benefits of renting and buying, making homeownership accessible to a wider audience. With Shared Ownership, you purchase a portion (typically 25-75%) of a property from a housing association, and you pay rent on the remaining share. As your circumstances evolve, you have the opportunity to increase your ownership stake, a process known as ‘staircasing’.

Why Choose Shared Ownership? 

Shared Ownership offers numerous advantages, especially for those struggling to get on the housing ladder. Here’s why it might be the perfect choice for you:

  1. Affordability: Get your foot on the property ladder with a smaller upfront deposit and mortgage. Shared Ownership homes are usually more affordable than buying outright.
  2. Stability: Enjoy the security of affordable homeownership as an alternative to the uncertainty of private renting.
  3. Flexibility: As your financial situation improves, you can gradually increase your ownership share. This empowers you to work towards full ownership at a pace that suits you.
  4. Capital Growth: As property values increase, so does the value of your share. This can be beneficial when it comes to selling or staircasing.

Navigating the world of mortgages, especially Shared Ownership, can be overwhelming. That’s where we come in! Our team of expert mortgage advisors specialises in Shared Ownership, and we’re dedicated to making your homeownership dreams come true.

Owning a property may be closer than you think. With Thomas Honour Mortgage Services, you’re not just getting a mortgage advisor – you’re gaining a partner committed to your homeownership success. Contact us today for a no-obligation consultation, and let’s unlock the door to your Shared Ownership dreams together!

Shared Ownership F.A.Q

The amount of deposit required for a shared ownership property can vary depending on several factors, including the specific property, the housing association, and the lender you choose. Generally, the minimum deposit for a shared ownership property is usually around 5% of the share you are purchasing.

For example, if you are buying a 50% share of a property valued at £300,000, your deposit could be £7,500 (5% of £150,000).

It’s important to note that the deposit amount can also be influenced by your personal financial circumstances, credit history, and the policies of the specific housing association and lender. Some lenders might require a higher deposit, especially if your credit score is lower or if you’re deemed a higher lending risk.

It’s recommended to consult with a mortgage broker who specialises in shared ownership to get a clearer understanding of the deposit requirements based on your unique situation. 

The initial percentage share you can buy in a shared ownership scheme is often influenced by both your affordability and the amount of deposit you have available. Typically, these factors play a significant role in determining the percentage of the property you can initially purchase. Your affordability assessment takes into account your income, expenses, and other financial commitments to ensure that the chosen share is manageable for you.

Additionally, the size of your deposit also impacts the initial percentage share. A higher deposit can potentially allow you to secure a larger share of the property, which may lead to lower monthly payments and/or a larger percentage share.

It’s important to note that the specific percentage share available to you may vary depending on the housing provider and the shared ownership scheme you are considering. To determine the most suitable initial percentage share for your individual circumstances, it’s advisable to consult with a qualified mortgage broker.