Shared Ownership Mortgage Lenders

Shared Ownership is a government scheme to help first-time buyers get on the property ladder by part owning and part renting a home. Many people have used it to buy a share in their first home. However, not all lenders offer Shared Ownership mortgages.

In this article, we’ll go through some of the major banks that offer this type of lending, how specialist mortgage providers can sometimes offer better deals, and why speaking to a Shared Ownership mortgage broker will help you determine which lender is right for you.

Which lenders offer Shared Ownership mortgages?

Almost half of all mortgage providers offer this type of borrowing, including some major high street names, such as Lloyds Bank. But each has its own eligibility criteria on top of the standard criteria to be eligible for the scheme, so it’s not possible to provide a blanket answer to the question of which lender is best for Shared Ownership mortgages.

Most lenders will lend to borrowers all over the UK, but some have restrictions. For example, Principality only offers Shared Ownership mortgages in Wales, the Progressive Building Society is limited to Northern Ireland, and Virgin Money offers loans only in England and Wales.

Other lenders have different criteria.

What rates do these mortgage providers offer?

Viewing our rates table below will give you an idea of what deals Shared Ownership mortgage lenders are currently offering. Please note that these interest rates are subject to change.

Please note that the above rates were accurate at the time of writing but are always subject to change at the lender’s discretion. The best way to find the most up-to-date deals is to speak to a mortgage broker.

What lenders offer a 100% Shared Ownership mortgage?

As explained earlier, most providers cap the LTV. However, some lenders, such as Kent Reliance, will consider 100% shared ownership mortgages.

Other specialist lenders without a high street presence also consider this type of loan. However, some don’t advertise that they offer 100% Shared Ownership mortgages, preferring to reserve this product for borrowers who already have a broker onside.

With only a handful of lenders willing to approve this type of loan, rates can be quite high, but it can still be a way of getting onto the property ladder. Your broker will review all the calculations and options to ensure you make a fully informed decision.

How a broker can help you find the right lender

As you can see, there are so many variables that trying to secure the best deal on a Shared Ownership mortgage with no prior knowledge of the market is a difficult task. You also need to consider the pros and cons of the scheme.

It’s also unwise to just start applying, and I hope you eventually find the right deal. Each application you make will leave a mark on your credit files, and if you get too many in a short period of time, it can lower your credit score.

So, the best thing to do is speak to a whole-of-market broker specialising in Shared Ownership. They will know the best deals out there, including any special rates only available via an intermediary, and they have connections in the industry which can be leveraged to get a deal over the line.

To speak to an expert, contact us today.

What if you live in Scotland?

Shared Ownership mortgages are available right across the UK, including in Scotland. While some lenders don’t lend for properties in Scotland, there is still plenty of choice. Most high-street banks, including Leeds Building Society and TSB, will consider Shared Ownership mortgage applications in Scotland.

There are also other mortgage schemes available to borrowers in Scotland, which are backed by the Scottish Government.

Do you need a specialist lender if you have bad credit?

Not necessarily. Bad credit is a general term that can refer to anything from a missed credit card payment to bankruptcy or repossession. The severity of any bad credit, how long ago it occurred, and whether the situation has been resolved will go a long way toward determining your options.

More severe bad credit can limit your borrowing options, which is likely to result in paying higher rates. However, some lenders specialise in bad credit mortgages and focus far more on your current circumstances than your credit history.

These include:

Borrowers with minor bad credit issues may still be able to apply to mainstream lenders depending on the strength of the rest of their application.

Get matched with a broker who specialises in Shared Ownership mortgages

Whatever your circumstances, if you think Shared Ownership is the right decision for you, your best bet is to speak to a broker to understand your borrowing options and how much a mortgage will likely cost.

The brokers we work with can compare your application against most mortgage products in the UK to determine which lenders are most likely to approve it.

With our broker matching service, we’ll assess your circumstances and match you with a broker who has a comprehensive understanding of this market and which lender is right for you. To get matched with your ideal broker, call 0330 818 7026 or enquire online.