Free Shared Equity Mortgage Advice
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:
- You purchase a new build home where the builder is offering Shared Equity on an 85/15 split
- The full price of the home is £150,000
- You require a 5% deposit (£7,500) to qualify for the scheme
- The builder provides an “equity loan” of 15% (£22,500)
- You then need a mortgage for 80% of the full purchase price (£120,000)
- Often you will pay no interest on the equity 15% equity loan for between 5 and 10 years
- You will own 100% of the property and can pay back the builder when you sell the home
- You can pay back the equity loan at any time without penalty
Due to high loan to value mortgage restraints, shared equity mortgages have become increasingly popular, which is why we have worked hard to become one of the UK’s leading experts on all the shared equity schemes available. If you decide that a shared equity mortgage is right for you then we have access to exclusive mortgage products designed specifically for this type of purchase.
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.