Shared equity mortgages are different to shared ownership
because there is no actual sharing of the property itself and some of the
purchase price, the deposit, is provided by government funded loans or in some
cases house builders.
You must find at least 10% of the main share though.The Home Buy Scheme will allow first time buyers to purchase a new
or open market home but purchasers will only have to have a 50% mortgage. The
remaining 50% owned by a Housing Association. A fee of 1.75% is added to the
Housing Association part every year to be paid back when you sell or acquire
the whole ownership.
Shared Equity is similar via housing associations where they provide
the 25% deposit or sometimes 50%, funded via government scheme. These deposit loans do
not require repayment until the property is sold.
Neither scheme charges rent, unlike shared ownership.
Private shared equity schemes such as a house builder offering a 75 - 25%
equity sharing can be mortgaged.
Once you have spoken to a housing association about Home Buy or Shared
Equity please complete our enquiry form to find out if we can arrange a
mortgage for you. Your home may be repossessed if you do not keep
up repayments on your mortgage.
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