Fifty percent ownership mortgages allow you to buy a property that is affordable to you in your area. It is a part rent, part buy scheme, where you pay a mortgage on 50 percent of the mortgage and rent on the share you do not own. The overall cost of 50 ownership mortgages is typically much lower than a conventional mortgage.

This article will look at the options available to 50 Ownership Mortgages buyers and the requirements you need to meet to qualify. There are many shared ownership schemes available to buyers. We recommend you opt for a government sponsored scheme, because they usually offer better terms and more protection for buyers than for-profit companies in the shared ownership mortgage industry.

Eligibility:

To qualify for a 50 Ownership Mortgage you must live or work in the area under the city council you apply with. For example, if you apply for the Cambridge City Council Shared Ownership Program, you must live or work in Cambridge to qualify. You must be a first-time-buyer (never owned a home before) or no longer afford a property in your area.

You may also have to join a register in the City Council you apply with. For example, the City Council of Cambridge requires applicants to register with Home-Link, a choice-based lettings scheme operated by Cambridge and six other neighboring government authorities.

Options

New Build Properties.

New Build Properties are properties built specifically for the shared ownership and low cost housing schemes in the UK. To apply you will have to contact the zone agent in your area.

Homebuy Schemes

HomeBuy schemes provides a rage of low cost home ownership products for low-income buyers who may not afford a full mortgage but can afford to buy a share in their home and take their first step on the property ladder. To apply you will have to contact your local agent. Read this article for a list of agents by region.

The Cost.

The cost of a 50 percent ownership mortgage will depend on the value of your house and the terms your lender provides. However, government sponsored shared ownership agents follow similar guidelines so general price guidelines can be provided to give you an idea of the cost of buying a shared ownership mortgage. Remember the cost of rent must be paid on top of your regular mortgage payments.

A house valued at 138,000 pounds will cost you around 27 pounds a week in rent, while a 200,000 pound house will typically cost 38 pounds a month. Add to this the cost of maintenance and repairs you will be responsible for as owner.

Remember you can staircase your 50 percent ownership mortgages to increase your stake in your home by purchasing shares in the property. The more shares you own the lower will be your rent, but your mortgage payments will increase if you use a loan to finance the purchase.

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