Mortgages & Solicitors

It’s common to purchase a Shared Ownership home using a mortgage - a process that is similar to the traditional methods of purchasing a property.

The only difference is the type of mortgage product you apply for and how you work alongside mortgage advisors, lenders and solicitors.

Below is a breakdown of what to consider if you’re looking for a Shared Ownership mortgage or a solicitor.

What is a Shared Ownership mortgage?

A Shared Ownership Mortgage is a specific mortgage product designed for those in the Shared Ownership scheme. It’s different to a traditional residential mortgage as it allows you to buy a share of the property rather than the entire thing.

Once you successfully apply for a Shared Ownership mortgage, you pay mortgage repayments on your share and below-market-value rent on the remaining amount.

Sometimes referred to as a ‘part buy, part rent mortgage’, they’re incredibly useful for first-time buyers that struggle to save for a larger deposit.

Shared Ownership mortgages are available to anyone permanently living in the UK that are:

  • First-time buyers
  • Homeowners that now can’t afford to buy
  • Individuals that are already living in a shared ownership property
  • People that are renting a housing association property
  • Households that earn under £80,000 (£90,000 in London)

You can apply for a Shared Ownership mortgage through a housing association and you’ll generally be asked questions about the following topics:

  • Your income
  • Your savings
  • Your credit history
  • Your preferred buying location

The amount you can borrow takes into account the following:

  • Your income
  • The mortgage cost
  • The rental payments
  • The service charges and ground rent charges

If you want to know about how to buy a Shared Ownership home, click here.

What to consider with a Shared Ownership mortgage?

When you’re looking for a Shared Ownership mortgage, it’s important to work with a specialist. There are now more than 25 banks and building societies that offer shared ownership mortgage products.

There are other multiple things to consider when finding a Shared Ownership mortgage:

1. How much deposit is required

A key issue to consider in choosing a lender is how much of a deposit they require. The smallest deposit is 5%, although some lenders may require 10% or even 15%. At Platform, our Shared Ownership requirements require a minimum deposit of 5%.

2. Consider other costings

Alongside your mortgage deposit, think about the reservation fee and legal fees that also apply to the transaction.

3. Think about affordability

Your income and expenditure have to meet the criteria of a mortgage lender or a housing association. You also have to make sure that you can afford to keep making the payments each month.

As part of our application process, we always refer you to an independent financial advisor (IFA) to perform your affordability assessment. This gives you the option of choosing whether to proceed with them for the mortgage or find your own advice somewhere else.

Views From Station Approach Development Views From Station Approach Development

Shared Ownership Mortgages

If you are looking for a mortgage on a shared ownership property, it is usually best to speak to a specialist.

There are now more than 25 banks and building societies offering shared ownership mortgages.

Find out more

Shared Ownership Solicitors

Working with the right solicitor when buying a Shared Ownership home is an important consideration. Your solicitor acts on your behalf during the process, keeping you informed and advised.

It’s always a good idea to find a solicitor that has experience in the Shared Ownership process, especially in terms of purchases and leases. The other things to consider include:

1. Get Multiple Quotes

Speak with multiple solicitors before instructing. You may ask them to advise you in writing if they expect any additional costs, allowing you to plan well in advance. Most solicitors will ask you to pay the fees to cover various local authority searches in advance, which is usually around £250.

2. Check for Lender Approval

If you know the lender you’re using for your mortgage, they will have a panel of approved solicitors. It’s a good idea to instruct a solicitor on the panel, as if a lender has to instruct an alternative solicitor, you’re charged additional fees.

3. Provide Information

If you’re receiving money from a parent or family member to pay for a house, tell your solicitor or mortgage advisor as soon as possible. This is key information that the lender or solicitor requires to prevent any delays further down the line.

4. Keep your Documents

The Shared Ownership process always requires a variety of identification documents, such as a passport, driving licence or utility bill before starting. Having these on hand can make the process much smoother.

If you need any help finding a solicitor, you can take a look at our solicitor panel below:

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Instructing a solicitor

Finding a solicitor to help you buy a shared ownership home is an important decision. They will be acting on your behalf throughout the purchase, keeping you informed of progress and advising on any concerns.

Shared Ownership Solicitors