Shared Ownership Mortgages Explained

Tailored home has partnered with independent IFA’s that operate Shared Ownership Mortgage schemes. They are commonly used for Part rent, part buy schemes that are then commonly known as Shared Ownership Schemes

These type of mortgages are popular with first-time buyers because they only need to find a fraction of the deposit and mortgage amount needed to buy a similar property on the open market.

When you buy a shared ownership property, you only buy a percentage stake in the property, from a housing association. Although this can be affordable, as you only own a percentage of the property you will miss out on some of the equity growth if the housing market rises.

You can, however, “staircase” which means buying another portion of the property at a later date.

Many of these shared ownership schemes, which often offer properties at a discount, are open to all comers through housing associations. Shared ownership mortgage schemes do vary from lender to lender.