To help buyers get onto the property ladder, many New Home Builders and Housing Associations now offer shared equity schemes, allowing more people to purchase their own home with only a 5% deposit.
With shared equity schemes the Builder or Housing Association provides an equity loan (often interest free for the first 5 years) between 10% -25%, meaning you only need to raise a mortgage of between 90% and 75%, while getting 100% ownership of your home; and, because you’ll have a smaller mortgage than you would have needed otherwise, your mortgage repayments will be lower too.
An example of how Shared Equity works:
We will provide you with your own dedicated mortgage advisor who will be with you from start to finish, ensuring you have all the assistance required to make your new home purchase as easy as possible. Your advisor will search the market for all shared equity mortgage products available and complete all of the paperwork with you. They’ll also deal with the lender, solicitor and surveyor throughout the process, to ensure your home purchase is completed as smoothly as possible.
In addition to shared equity, we can also advise you on other available schemes, such as the New Buy, Mi New Home and the Help to Buy scheme, all which only require a 5% deposit to purchase a home.
If you are interested in finding out more, then contact your local branch today for impartial advice on how all of this works and to obtain full details of all the Shared Equity schemes on offer in your local area.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. FIRST MORTGAGE IS A TRADING NAME OF FIRST MORTGAGE DIRECT LIMITED WHICH IS AUTHORISED AND REGULATED BY THE FINANCIAL CONDUCT AUTHORITY. IN ENGLAND AND WALES YOU MAY BE REFERRED TO AN ADVISOR FROM FIRST MORTGAGE (NE). FIRST MORTGAGE (NE) IS A SEPARATE ENTITY AND IS A TRADING STYLE OF M&R FM LTD, WHO ARE AUTHORISED AND REGULATED BY THE FINANCIAL CONDUCT AUTHORITY