Shared Ownership Mortgages may be a great option for you if you can’t quite afford to buy a home but are interested in entering the property ladder. With shared ownership mortgages you buy a stake in a property and pay your lender rent for the remaining share. There are a number of investors and lenders who offer shared ownership mortgages. However, we recommend you use a government sponsored agent to finance your purchase. Government agencies are non-profit institutions and offer better terms and protection to buyers. The British government provides access to shared ownership mortgages through its HomeBuy scheme. Click here for contact details of a HomeBuy agent near you.

Shared ownership mortgages are a popular product for first-time buyers and homeowners who are struggling to pay their mortgages. They offer buyers the opportunity of enjoying some of the benefits of home ownership at a reduced cost. Are they a good way to take your first step on the property ladder? What are the risks associated with them? And what shared ownership mortgages are now available?

This series of articles on shared ownership mortgages will provide you with the answers to these and other questions on part-buy/part-rent schemes.

Definition:

Homeowners who are claiming certain benefits from the government may also be able to claim for help on the interest payments of their mortgage. The name for these benefits varies depending on your area or local council. Programs called “help with housing costs” or “Income Support Mortgage Interest” or similar names refer to the same programs. It is important to note that ISMI benefits will not help you pay the mortgage or loans you have, just the interest on them. The rate used to calculate the benefits for ISMI is based on the Bank of England’s average mortgage rate.