The concept of shared equity is that you buy a portion of a property and rent the rest. Local authorities and house builders can offer shared equity homes. You still need a deposit to put down for your purchase, but it is less than normal because it is only for your share of the property.
You will need a mortgage for your share of the property too. For this you’ll be searching for shared equity mortgages. At a later stage, when you are able to afford it, you will be able to buy the remaining equity in the house, but it will be at market prices at that time.
The main advantage of a shared equity purchase is that it can get you on the property ladder earlier than you might otherwise be able to afford. In fact, the overall cost of buying in full through such a scheme is no cheaper than a regular purchase. However, it does help those people without sufficient income to satisfy the requirements of a mortgage lender and get themselves a home.
Innovative mortgage solutions are always needed to help first-time buyers get on the property ladder, and lenders have to look at ways to make the market more affordable as schemes from the Government cannot always be relied on to assist buyers in the difficult housing market.
The latest schemes for shared equity are being innovated by House builders, where they are desperately trying to help the first time buyer from going into extinction.
Shared Equity Mortgages are complex to say the least, if you are in this market please contact UK Mortgage Advice Ltd, and use their full expertise and knowledge to help you