Could 2018 be the year of the shared-ownership mortgage?
The private rental market is under much scrutiny at the moment, so could 2018 be a popular year for the shared-ownership mortgage?
The shared-ownership mortgage, where a proportion of the property is bought, and rent is paid on the remainder, first appeared in 1979. As a viable alternative to private renting while attempting to save a deposit, it has remained much in the shadows, until now.
A growing number of borrowers are seeking out this step-by-step method of becoming a home-owner and, the good news is, the government is also on-board, and is planning to provide nearly £5billion in grant funding.
How does shared-ownership work?
- buy between 25 – 75% of property
- pay deposit only on percentage amount purchased
- pay rent on remainder
- can be stepped up over time to become 100% owner
- not just for low-income earners but also for high property value areas
- cheaper alternative to private rental
Around 2000 new providers are coming on board with shared-ownership. This means an increased level of competition, which can only benefit you, the borrower.
Deal Direct is an independent mortgage broker and, as such, can advise you on any type of mortgage from any provider across the UK.
Even if you suspect you may not qualify, you have nothing to lose and everything to gain by consulting with us and allowing us to fully review your circumstances with you. You could be very surprised with the result and find yourself well on the way to owning your first property in 2018.