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Shared ownership remortgage

Want to know how to refinance a Shared Ownership mortgage? Get the right advice here.

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By Pete Mugleston   Mortgage Advisor

Last updated: 8th February 2019 *

How to remortgage a Shared Ownership mortgage

We’ve been approached by lots of people who want to know whether they can remortgage a Shared Ownership property and how to go about it

If you have previously looked into remortgaging your Shared Ownership mortgage, you may have found that there are less lenders to choose from and that the rates aren’t always the best on the market.

The good news is that the advisors we work with have access to specialist lenders across the UK who may still be able to offer you a competitive rate, even if you’ve been turned down by a lender in the past.

To help make the process of remortgaging as smooth as possible, we have created this guide to tell you everything you need to know about remortgaging on Shared Ownership.

This includes:

  • How to remortgage on Shared Ownership
  • Getting a mortgage to buy out Shared Ownership
  • Remortgaging with a standard mortgage
  • How much can you borrow when you remortgage?
  • Can you remortgage on Shared Ownership with debt consolidation?
  • Where can you find the best Shared Ownership remortgage deals?
  • Which lenders can you remortgage your Shared Ownership property with?
  • Why you should speak to a Shared Ownership remortgage broker
  • Contact an expert to switch your Shared Ownership mortgage

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How to remortgage on Shared Ownership

So, can you remortgage if you have a Shared Ownership property and how does it work?

Yes, in the right circumstances it is completely possible to remortgage.You’ll need to go through a similar process as a standard remortgage but the big difference is that you’ll be limited to lenders that offer Shared Ownership mortgages.

Getting a mortgage to buy out Shared Ownership

If you own shares in a property, you may want to increase your mortgage amount to pay off your Shared Ownership. One way to do this is to remortgage the property with either the same lender on a better rate, or or with a different lender.

Most Shared Ownership developers allow buyers to do this, with the exception of the Help to Buy: Shared Ownership scheme, which allows people to buy between 25-75% of the total property value.

How do you buy more shares?

To purchase more shares in your property, take the following steps...

  • Contact the housing association or the organisation you have bought the property from
  • Inform them about how many shares you would like to buy
  • Have the property revalued (the value of the property may have increased or decreased and this could affect the price of each share)
  • Purchase more shares (By remortgaging, increasing your current Shared Ownership mortgage or using savings.)

Remortgaging with a standard mortgage

You may not realise it, but if you are in a position to  to buy the rest of the shares in your property, then you might be eligible for a standard remortgage product. This could open up the market to you and give you access to better rates of interest.

Switching from a Shared Ownership mortgage to a standard remortgaging product isn’t always simple but if you have an experienced mortgage advisor to take you through the process, then it can be made a lot easier and could save you money. Get in touch and  one of the  Shared Ownership mortgage brokers we work with will  help you.

How much can you borrow when you remortgage?

The amount you can borrow when you remortgage your Shared Ownership property will largely depend on your income, although every lender is different.Your income may be assessed against your your outgoings (this is sometimes called stress testing.)

As well as looking at how much you earn, they may also look at the type of income you have because some deem less stable forms of income such as maternity pay or income from self employed applicants, as more of a risk.  

If you pass affordability checks, the majority of lenders will provide loans at 3-4x your income. That being said, there are some lenders that may consider loaning 5x your earnings , and in the right circumstances, a handful may even offer 6x your salary.

Annual income of £25,000 (For example purposes only)

Income Multiples Loan Amount
x3 £75,000
x4 £100,000
x5 £125,000
x6 £150,000

Can you remortgage on Shared Ownership with debt consolidation?

Over the years, we’ve helped lots of homeowners with debt to remortgage their Shared Ownership property. As well as helping buyers with debt, we have also helped those with:

  • Low credit score
  • Late payments
  • Mortgage arrears
  • Defaults
  • CCJs
  • Debt management plans
  • IVA
  • Bankruptcy
  • Repossession

Many people are unaware that there are mortgage lenders who specialise in customers  with “bad credit.” Of course, with there being a limited amount of lenders that offer Shared Ownership mortgages, it can be difficult to find a one that offers mortgages for borrowers with “bad credit” on top of this.

However, it isn’t impossible. In fact, the brokers we work with have helped over 45,000 people find a mortgage, usually with circumstances that other brokers would decline because of their lack of experience or knowledge.

Contact a “bad credit” mortgage specialist here to find a mortgage that’s right for you or for more information, see our bad credit information section.

Where can you find the best Shared Ownership remortgage deals?

Remortgaging your property can potentially save you a lot of money, so if you are interested in switching your Shared Ownership mortgage, you’ll want to find the best rates possible.

Without in-depth knowledge about the current market, rates and which lenders offer Shared Ownership mortgages, this can be overwhelming and time consuming.

That’s why going to a mortgage advisor who can do this for you is so beneficial. Not only can the advisors we work with find you the best rates on the market, they can also compare Shared Ownership mortgages and calculate which one is best for you based on what you want and your affordability.

To find the best Shared Ownership remortgage rate, contact an advisor here.

What about using a Shared Ownership remortgage calculator?

There are many online Shared Ownership mortgage calculators that provide an “estimation” on how much you can expect to pay on your new mortgage but the problem with some of these, is that they don’t take personal factors into consideration.

We’ve helped a lot of borrowers who have used a calculator and been confused with the quote they have received. For example, an online tool won’t adjust your estimation based on the type of property you have.

This is a really important factor for most lenders because some property types such a high rise flats or homes with non-standard construction are deemed as a higher risk. Therefore with some lenders you might be asked either for a larger deposit or to pay a higher rate of interest.

For a tailored and clear quote based on your unique situation,  talk to an advisor who knows the market and understands how each lender will assess your application.

Which lenders can you remortgage your Shared Ownership property with?

Despite the fact that there are fewer lenders on the market who currently offer staircasing and Shared Ownership remortgaging products, there are still some high street and specialist lenders that offer rates that are competitive.

Even if you have been turned away for a Shared Ownership remortgage with a high street lenders such as Halifax or Nationwide, there may well be other options for you.

The advisors we work have access to hundreds of lenders and can find you the best ones for you based on your situation.

Why you should speak to a Shared Ownership remortgage broker

We only work with trusted experts that are:

  • Whole of market
  • Knowledgeable about which lenders to go to as they successfully arrange these already
  • OMA Accredited advisors
  • LIBF Training course certified

Contact an expert to switch your Shared Ownership mortgage

If you have questions about changing your Shared Ownership mortgage and want to speak to an expert for the right advice call Online Mortgage Advisor today on 0800 304 7880 or make an enquiry here.

Then sit back and let us do all the hard work in finding the broker with the right expertise for your circumstances.  – We don’t charge a fee and there’s absolutely no obligation or marks on your credit rating.

Updated: 8th February 2019
OnlineMortgageAdvisor 2019 ©

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The info on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

Find out more about how we help the people remortgage.