With shared ownership, lenders add your rent and service charge to your outgoings before they decide how much you can borrow. Two buyers on the same household income can be offered very different amounts depending on the share they buy and the rent they pay.
We run the numbers with lenders that offer shared ownership mortgages and show you the share you can realistically afford, so you apply with confidence.
In England you can usually apply if your household income is £80,000 or less (£90,000 or less in London) and you cannot afford to buy a suitable home on the open market. You do not have to be a first time buyer in every case, but you cannot own another property when you complete.
Housing associations run their own affordability checks too, and some give priority to local people, key workers or members of the armed forces.
Staircasing means buying more shares in your home. Each time you staircase, the price is based on the current market value, so a rise in value makes each new share more expensive. You will need a valuation from a RICS surveyor and you may pay legal fees.
Most people remortgage or borrow more from their existing lender to fund staircasing. We arrange shared ownership remortgages for this, including the final step to owning the home outright.
Lenders that offer shared ownership mortgages look at the same core things as any other mortgage, plus the details of your lease.
Income and Affordability: your income, the rent, the service charge and your other commitments.
Credit History: a clean record gives you the widest choice. Credit issues do not always rule you out, but the options are narrower. If you have adverse credit, you could be referred to our sister company, Alexander Southwell Mortgages, as this may fall under the specialist category.
The Lease: lenders check the lease length, the rent review terms and that the housing association is on their approved list.
Your Share: some lenders have a minimum share, so a very small share can limit your choice.
