Shared Equity Mortgages

Joint ownership of real estate by both lenders and property dwellers.

Shared equity mortgages. With shared equity schemes the builder or housing association provides an equity loan often interest free for the first 5 years of between 10 25 of the property s value meaning you only need to obtain a mortgage for between 90 and 75. Shared ownership equity mortgages. Shared equity schemes have been a feature of the mortgage market for several years and have primarily been offered by. This is the shared equity mortgage stream for the funding of shared equity mortgages that will be provided by the proponent directly to first time homebuyers stream 2.

The shared equity mortgage has a 0 monthly payment but the lender will take 35 of the property s appreciation when the buyer sells. Shared equity works by providing you the buyer with a loan which will form part of the deposit for the property you want to buy. An example of shared equity mortgage may look like this. House builders local authorities and as part of government initiatives to help first time buyers onto the property ladder.

Shared ownership and shared equity mortgages are increasingly popular for first time buyers looking to get on the property ladder. In the meantime the. Typically they allow you to combine a small deposit. When the property is eventually sold the owners share in the proceeds or equity.

Traditional mortgages typically require a significant deposit which can be difficult for some to manage. The homebuyer also puts down 20 000.