Shared Ownership is a government scheme that helps First Time Buyers in Doncaster and home movers in Doncaster purchase a percentage of your home (usually from 10% to 75% of the home’s value), and pay rent on the remaining share. Later on, you can buy more significant shares when you can afford to do so.
If eligible for this scheme, partial homeownership is an excellent way for first time buyers in Doncaster to get onto the property ladder and a way of owning your home without the need for a heavy deposit upfront.
Firstly, a deposit needs to be put down on the property. The minimum deposit that you need to put down can vary. For example, the percentage can change for better or worse depending on how good your credit score and financial situation is.
This scheme will still require you to take out a mortgage, but only on the percentage that you’re buying. For example, if you plan to buy 40% on a property worth £170,000, you’ll only need to take out a £68,000 mortgage.
Furthermore, rather than providing a deposit based on the full house price, you only have to put down a deposit based on the mortgage you have taken out. So, in this example, a 5% deposit would be £8,500.
You will start paying off your mortgage once the offer you put down gets accepted and you have moved in the property. As mentioned before, you will also have to pay rent on the remaining share of the property.
Despite having two sets of payments, your overall monthly costs should not be as expensive as taking out a ‘regular’ mortgage.
When taking out a mortgage, you will need to consider lots of different costs. Shared Ownership mortgages will likely come with set-up/arrangement charges, booking and solicitor fees. Make sure to double-check that you are aware of these additional costs.
Of course, the costs can vary depending on the property that you are buying. As well as the deposit size, monthly payments, arrangement fees can differ from property to property.
To make sure you are eligible to qualify for the Shared Ownership Scheme, here are the requirements:
Although this may appear like a lot, it’s the same as most schemes. Each schemes’ differ from the other, as they are targeting applicants in different situations.
If you have credit problems, you may need to look at other ways to get a mortgage. There are lots of different government mortgage schemes out there that could help you get a mortgage.
For more information on these schemes, feel free to navigate to our website’s mortgage advice service page.
Our mortgage advisors in Doncaster have helped many buyers secure a mortgage through the Shared Ownership scheme. We have been helping First Time Buyers for over 20 years now!
If you are looking for mortgage advice in Doncaster, we can check whether you match any schemes’ requirements.
Please take advantage of our free mortgage consultation by booking yourself in for a mortgage appointment today.
Date Last Edited: February 20, 2024