Pete Mugleston | Mortgage AdvisorPete has been a mortgage advisor for over 10 years, and is regularly cited in both trade and national press.
Updated: 27th August 2019 *
Many customers contact us to ask about the mortgage rates for Shared Ownership deals. Whether you want to know what they are or how to qualify for the best ones around, you’ve come to the right place because the advisors we work with have access to the whole of the market and can find you the best deal, even if you’ve been declined or have bad credit.
Carrying out a Shared Ownership mortgage comparison is vital to ensure you’re getting the right deal - but what’s the best way to go about this? Checking every single lender’s website can be exhausting and comparison tables aren’t always that useful, since they often give the most prominent placement to sponsored deals and aren’t always whole of market.
The best way to carry out a comparison of Shared Ownership mortgage rates in the UK is through a whole-of-market broker, like the ones we work with. They can give you bespoke advice on your Shared Ownership application and will search out the lender best position to offer you a favourable deal based on your needs and circumstances.
How do I get the best interest rates on a Shared Ownership mortgage?
Shared Ownership mortgages are part of a government scheme to help low income households and first time buyers get on the property ladder by purchasing a share of a property (usually 25-75%) and renting the remaining portion of its value from a council or housing association.
Getting the best rates on Shared Ownership mortgages involves the same factors as any other residential mortgage - you’ll need access to the whole market to find the lender offering the best Shared Ownership mortgage deals for a borrower with your needs and circumstances.
This is where we come in as the advisors we work with have access to every mortgage provider on the market and can pair you with the lender best positioned to help you out.
But will I qualify for a Shared Ownership mortgage?
To qualify for a Shared Ownership mortgage, the following criteria must be met…
Your household income must be less than £80,000 (£90,000 in London)
You need to be either a first-time buyer or a previous homeowner who can no longer afford a mortgage
Alternately, you may qualify if you are renting a council or housing association property
Those with a long-term disability can also qualify under the terms of the government’s Home Ownership for People with Long-Term Disabilities legislation
Military personnel are given priority for this scheme
Read on to find out what criteria you will need to meet to land the best mortgages for Shared Ownership customers.
Can I get a Shared Ownership mortgage quote online?
Yes, whether you’re looking for first time buyer Shared Ownership deals or you’re a former homeowner who can no longer afford a mortgage, it may be possible to find a broker and a lender that will carry out most of your application online and offer you a quote via this channel.
Get in touch and the advisors we work with will help you find the lender offering the best deals for Shared Ownership mortgages for a borrower in your shoes.
Which banks provide Shared Ownership mortgages?
Customers often ask us things like “which banks do Shared Ownership mortgages?” and “what are the best Shared Ownership mortgage banks?”
In truth, you should avoid going directly to a bank for a Shared Ownership mortgage because you will only have access to their deals, and there may be a better one elsewhere. Also the bank’s advisor is working for the lender, not you and quite often they will carry out a hard search at the beginning, which will leave a mark on your credit rating.
It’s important to seek advice from one of the whole-of-market brokers we work with before proceeding, so you can rest assured that you’re paired with the lender who is best for you.
Not all lenders offer Shared Ownership mortgages, but some of the high street ones do. However, the cheapest Shared Ownership mortgages that you’re eligible for might be limited to specialist lenders outside of the mainstream.
What affects mortgage rates for Shared Ownership deals?
You will only qualify for a lender’s best mortgages for Shared Ownership properties if you meet all, or at least most, of their eligibility and affordability requirements.
A mortgage provider will decide which deals you qualify for based on the following factors…
Income: You will need to find a mortgage to cover between 25% and 75% of the property’s value, and the amount the mortgage lender is likely to lend you will be capped at x4 (most lenders), x5 (some) or x6 (a few) your annual salary. Your household must not be earning more than £80,000 (or £90,000 in London) - but the more you earn up to this cap, the more likely the lender is to offer you their best Shared Ownership mortgages.
Employment type: If you’re self-employed or earn a significant amount through things like benefits, bonuses and commission, a specialist lender might be needed. Read more on self-employed mortgages here.
Credit rating:Some lenders will turn you away outright if you have any bad credit on your file, but it might still be possible to find the best mortgage deals for Shared Ownership customers if you approach a specialist provider. Read more about bad credit mortgages .
Your age:The best Shared Ownership mortgages might be harder to come by if you’re an older borrower. However, those over 55 can apply for a similar government scheme called Older People’s Shared Ownership, which only lets your purchase up to 75% of your home, although you will not pay rent on the remaining percentage if you hold a stake of that amount.
The property type:If the property you’re buying has any elements of non-standard construction (e.g. a thatched roof or a timber frame) a specialist lender might be needed. The best mortgage rates for Shared Ownership buyers might be harder to come by, due to a slimmer choice of lenders. You can read more about non-standard construction mortgages here.
Your deposit:It is possible to get a Shared Ownership mortgage with just 5% deposit but putting down more than this (if you’re able to) will make some lenders more likely to offer you their best Shared Ownership mortgages rates. You can read more about mortgage deposits here.
Your outgoings: The lender might look at your outgoings when deciding how much they’re willing to let you borrow. They will likely factor in that you’ll have rent commitments to cover the share of the property you don’t own, but factors such as outstanding loans and dependent children may also be accounted for..
Speak to a Shared Ownership mortgages expert
If you have questions and want to speak to a Shared Ownership mortgages expert for the right advice, call Online Mortgage Advisor today on 0808 189 2301 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.
*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.
Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes.
The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.
Pete's presence in the industry as the 'go-to' for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!
Read more about Pete here...