SimplyFinance - Shared Ownership Mortgage

Applying for UK Remortgages Online

2007-07-25T23:00:00Z

The purchase of financial services online has increased dramatically in the past few years. With many advances in online banking security, more and more people are looking into the benefits of shopping and applying for loans online. More and more UK remortgage lenders are looking to capitalise on this new online lending market by making their rates and product range more accessible to online consumers.

One reason to shop for UK home remortgage loans online is that it is much more efficient than traditional remortgage shopping. In the past, the only way to shop for the best UK remortgage rates was to physically go to the banks and lending companies and speak with a UK remortgage broker. Now, by answering just a few questions and with a few clicks of your mouse, you can get a list of UK remortgage lenders and their best UK remortgage rates. Instead of taking days to find the best UK remortgage offer, an expedient shopper can do the same thing in just a few hours.

In addition to saving you time, shopping online for the best UK remortgage rates can save you money. Occasionally, in order to compete in this newly competitive online remortgage market, UK remortgage lenders will offer special remortgage rates to online customers only. Not only will they offer special online only remortgage rates, but lenders may offer waived valuation fees or other incentives in order to attract new consumers in this highly competitive space.

While all of these deals are out there, it is important to be smart when choosing a remortgage lender. Do research into their company to be sure it?s a reputable organisation. All lenders and advisors should be regulated by the Financial Services Authority (FSA). Click here to check if your broker is FSA-authorised. Also, remember to keep in mind that what you?re looking for is the remortgage rate that will benefit you most in the long run. Don?t be sidetracked by flashy, short-term offers. Instead, try to find what will save you the most money for the entire term of your remortage loan. Using the APR as a basis for comparison rather than the interest rates will make this a lot easier - see 'What is the difference between the mortgage interest rate and the APR?' for more information about this.

If you'd like help finding the best UK remortgage loan for you, take a minute to fill out our short remortgage form, and we will connect you with a qualified remortgage broker from the SimplyFinance network. Your broker will search to find the best remortgage deal for you, taking your financial circumstances into consideration.

Shopping for a Shared Ownership Mortgage

2009-06-28T23:00:00Z

What is a shared ownership mortgage? If you are still in the process of saving up to buy a home, why not take advantage of a shared ownership mortgage? With a shared ownership mortgage, you do not need to have the entire amount of money needed to purchase a particular house that you have your heart set on, and you do have the full rights of an owner-occupier while you are part of this scheme. Thus, if you have a home that is under a shared ownership mortgage, you just need to buy a certain percentage of the share for the property. The remaining portion of the share will be owned by a housing association from where you have purchased the property, and so you pay the housing association rent for the remaining portion of the property.

Can I eventually own the property that is under a shared ownership mortgage? Yes, you can definitely own any property that is under a shared ownership mortgage. This is actually the advantage of a shared ownership mortgage. There is a 99-year window in which you can purchase the property, which means that you literally have a lifetime to buy the shares for the rest of the property that you do not yet own.

Are there any disadvantages to a shared ownership mortgage? Because of the numerous benefits working to a borrower's advantage, the one downside to a shared ownership mortgage is that this type of home ownership scheme is quite difficult to come by. The demand for this type of mortgage is high and not all home mortgage loan providers will offer shared ownership mortgages.

How can you shop for the best shared ownership mortgage plan? Housing associations, housing trusts, cooperatives and other similar associations are the ones who are offering shared ownership mortgages. Because of the great amount of leeway given to those who are benefiting from a shared ownership mortgage, investors and lenders do not easily or commonly give out this type of loan. However, you just need to be resourceful enough to be able to shop for the best shared ownership mortgage.

The best resource for finding out more about eligibility for a shared ownership mortgage is the Home and Communities Agency. This governmental agency runs the 'National Affordable Housing Programme', and is responsible for funding new and affordable homes in UK. They also regulate the housing associations in the country. If you want to obtain a list of the housing associations from which you can get a shared ownership mortgage, this is the agency that you need to go to. Just specify the area where you wish to buy a property and they can give you a name of the housing associations in that area, as well as the names of the developers of such home ownership schemes. However, you may need to wait for some time because priority is given to existing tenants or those who are on the waiting list.

All About Shared Ownership Mortgages

2009-06-28T23:00:00Z

Shared ownership mortgages were introduced in the early 1980s, and were originally designed to help low-income first-time buyers onto the property ladder when they didn't have a large enough deposit to buy a property with a standard mortgage. As the property prices rose in comparison to the average wage however, these mortgage products became an increasingly popular way for new home buyers to afford a place of their own. According to recent figures published by the Council of Mortgage Lenders, there are currently 111,000 shared ownership properties in the UK, making this the largest form of low cost home ownership after the Right to Buy scheme.

Shared ownership mortgages are often referred to as 'part buy, part rent' schemes, and they are run by housing associations, co-operatives and other public organisations. The way they work is that you would buy a percentage of the property, typically 25 or 50 percent of the total, and you would rent the remainder from the housing association, paying a monthly rent amount as you would if you were a tenant. If you plan to take out this type of home mortgage loan, you would first need to have the property valued to determine the amount you would need to buy, and the interest you would be charged.

The idea of a shared ownership mortgage is that you would eventually be able to buy the property outright, once you were financially secure enough. You can buy shares in the property to this effect throughout the scheme, and this is known as 'staircasing'. Even when you do not own the property in full, you would still have all the usual rights of an owner-occupier. Until you have bought the full allowance of shares, your status is that of a leaseholder with a 99 year lease on the property, although this period may vary from one housing association to another.

There are a number of variations on the shared ownership mortgage theme. Shared ownership home mortgage loans for the elderly will often come with the caveat that the maximum share of the property that can be bought is 75 per cent, and for this type of scheme the participant must be over 55 years of age. Usually though, a shared ownership home loan should enable you to eventually become a full homeowner. Over the recession, property developers have found that demand for new build properties has fallen, because people are not able to afford standard mortgages. Therefore, there is currently an upsurge in number and variety of shared ownership mortgages available, as property companies are offering shared ownership options to potential new buyers as a way of encouraging first-time buyers back onto the property ladder.