Popular Shared Ownership Scenarios in Birmingham
As open and honest Mortgage Advisors in Birmingham, we regularly have customers who get in touch with questions and enquiries about Shared Ownership in Birmingham. It’s not the easiest scheme to understand!
Our job is to explain is simply and efficiently, so that you are better prepared for a Shared Ownership Mortgage. Here are the most popular FAQs that we receive when customers contact us about Shared Ownership.
Do I need a deposit?
Some applicants may believe that they don’t require a deposit for a Shared Ownership mortgage, however, this is not true. In almost all mortgage situations, you will be required to put down a deposit for a property, with the amount of deposit varying on the rates you are looking to gain access to, as well as what the lender is willing to work with.
Typically, the required deposit amount is between 5-10% of the purchase price. By taking out a Shared Ownership mortgage, you are purchasing only a portion of the property initially, therefore, you will have to put down a deposit based on the amount you are looking to buy.
For example, if your property is worth £30,000 and you looked to purchase half of that share, you would need to put down a deposit in line with the £15,000 you will be paying for. If you put down 5% deposit on this amount, you will be on a 95% loan-to-value. The more deposit you can afford to put down, the more deals you’ll have access to and the lower your monthly payments could be.
Can I increase my share of the property?
Known as “staircasing”, applicants who own a percentage of the property may purchase additional shares at any time.
If you initially only wish to own 25% of the property, you could purchase a further 25%, should you come into the funds to do so.
This will reduce your monthly rental payments to the other party (however, your mortgage payments will remain the same).
Are there any other fees that come with Shared Ownership?
When you take out a Shared Ownership mortgage, you will need to bear in mind that you will be paying back both your mortgage, as well as rent to the provider or landlord. On top of this you will be paying back ground rent and service charges, as all Shared Ownership homes will be leasehold.
It may be worth having a property survey taken out on the property too. If there are any problems with the property that you are looking to buy, it is important that you are made aware of these ahead of time. Anything left unfixed could damage the properties value down the line. A dedicated mortgage advisor will help you decide on the appropriate survey to take.
Can you take out a Shared Ownership mortgage on any property?
Shared Ownership mortgages are available on specific types of property. This includes new build properties, a property that was previously under shared ownership and is being resold as such, and homes that meet specialist needs, such as a ground floor flat for someone with a long-term disability.
Your dedicated and trusted Mortgage Advisor will be able to go over the details of a Shared Ownership in Birmingham with you. Book online to make your free mortgage appointment with one of our team at a time that best suits you.
Why Choose us for Shared Ownership Mortgage Advice in Birmingham?
Mortgage Experts – Shared Ownership in Birmingham
We have helped lots of applicants over the years with their Shared Ownership in Birmingham. We could be able to help you too!
During your initial free mortgage appointment, your dedicated mortgage advisor in Birmingham will explain the ins and outs of the Shared Ownership Scheme and will find out whether you qualify for it or not.
The wonderful customer reviews that we get on a regular basis say it all. Customer service is the basis of everything we do here at Birminghammoneyman.
We always work hard, supporting our customers throughout their process, to ensure they receive the absolute best mortgage advice service we can provide.
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Follow our ‘Get Started’ process and get yourself booked in for your free mortgage appointment with one of our amazing mortgage advisors in Birmingham today.
1000’s of Deals
We have access to a wide variety of different lenders, all with unique products tailored to different circumstances. Because we have access to both high street and specialist lenders, we are able to search through 1000’s of mortgage products, working hard to find the right one for you and your situation.
As a hard working Mortgage Broker in Birmingham, we have been around the world of mortgages for over 20 years and have experience in an array of unique mortgage situations. Whilst no two cases are the same, it is very likely that we will have encountered something similar in the past!