Shared Ownership
As part of our commitment to support those looking to get onto or move up the property ladder, we have developed our own standalone mortgage products and proposition to support the Shared Ownership scheme.
The scheme enables those on joint incomes up to £80,000 (£90,000 in London) to purchase an initial share of a property and pay rent on the remaining share. Buyers only need a small deposit and can increase their share in the property over time.
Our Shared Ownership mortgage proposition:
- The minimum initial share of the property to be purchased is 25% and the maximum is 75%
- The borrower must contribute at least 5% deposit from own funds or via family gift
- Maximum household income level is up to £80,000 outside of London and up to £90,000 in London
- Up to 95% LTV on the borrower's share (based on affordability)
- The scheme is only available in England
Remortgage Criteria:
- No additional borrowing unless this is to staircase.
- Staircasing must be for a minimum of 5% of the property's value.
- A physical valuation will be required on all applications.
- If this is a like for like remortgage, a letter from the Housing Association will be required to confirm up to date rent and ground rent/service charge.
- If staircasing, the Memorandum of Sale will be required from the Housing Association confirming the new share, rent and ground rent/service charge.
Further Advance Criteria:
- A Further Advance can only be agreed where funds are to be used to staircase.
- Staircasing must be for a minimum of 5% of the property's value.
- A new re-inspection report will be required in all instances to ascertain the current value of the property. This will be at the cost of the borrower.
- A Solicitor will be required to act.
- Memorandum of Sale will be required from the Housing Association confirming the new share, rent and ground rent/service charge.
Shared Ownership Infographic
For more information on how we can support, contact your local Business Development Manager.