Shared Ownership Mortgage Brokers

Purchasing a property through the Shared Ownership government scheme is a way to get onto the property ladder quicker than you might otherwise be able to, but with a few different parties involved, the process has its nuances. That’s something that an experienced broker specialising in this field can help you navigate.

By reading this guide, you’ll have all the information needed about the benefits of using a Shared Ownership mortgage broker, what they can offer and how to begin the broker-buyer relationship.

Using a Shared Ownership mortgage broker

A quick Google search for ‘mortgage brokers’ will soon draw up a long list of advisors but the expertise of each differs. If you’re looking to buy a home under the Shared Ownership scheme – especially if you’re a first-time buyer, which Shared Ownership applicants often are – ideally you want an advisor who has been through the process many times before.

The scheme allows you to purchase a portion of a property while you pay rent on the remaining amount to either the developer or a housing association but how do you find these properties? How much will the rent be? What will the mortgage repayments look like? How and when can you buy more of the property?

A specialist broker can answer all these questions and do so based on your specific financial situation. With fewer lenders offering this option and some only accessible via a broker, having a broker also strengthens your chances of getting a better mortgage loan.

We work with brokers who specialise in Shared Ownership mortgages and arrange them every day – make an enquiry and we’ll set up a free, no-obligation chat between you and an advisor we’ve handpicked for you today.

Services they will provide

There are many things a broker specialising in this area will be able to assist you with. These include:

• Advising on where to find homes available to purchase through the scheme.
• If not done by the housing association once you’ve selected a home, they can assist in advising on the government scheme
• Comparing the whole mortgage market to source the best Shared Ownership loan for your circumstances. That means looking at rates, repayments and ways of increasing your ownership over time.
• Helping you prepare your mortgage loan application. They know what you need to meet the criteria.
• Helping you change your arrangement in the future. Should you choose to, a broker will be able to help you refinance onto a conventional mortgage, purchase more of the home or make any necessary changes to your Shared Ownership agreement.

What your broker will require

In order for a broker to give you the best advice, they’ll need to become familiar with your financial circumstances. Only by knowing how much you earn, any debt you have and your monthly spending pattern can they determine how much you should be asking to borrow and what percentage of a home you should be purchasing. A consultation with a broker will help with this but afterwards they’ll need to see:

• Details of your income: This might be payslips, HMRC tax records if you’re self-employed or bank statements. The broker will be checking that your income lies below £80,000 (£90,000 if in London) as that’s a requirement in order to qualify for this type of finance.
• Information of any savings: This, alongside income, helps demonstrate what you can afford to borrow and the deposit you could put down. The minimum should be 5% of the share you’re wanting to own. You can choose to own anything between 25-75% of the property’s total value.
• Credit report: Good or bad, a broker needs to know your credit history. They can offer advice on how to improve it or identify lenders less likely to say no to applications with bad credit.

They’ll also be looking to confirm you’re a first time buyer – or, if not, that you can’t afford a mortgage anymore – that you’re over 18 and that you plan to live in the property – other stipulations of the scheme.

Benefits of using a broker

Any buyer, especially those purchasing for the first-time and through a process that differs to the conventional mortgage, should take advantage of any resources available to them. Working with a specialist broker who deals with the Shared Ownership market every day will give you access to instant and accurate advice and information. Other benefits include:

• A saving of time: A Shared Ownership broker will already know which high street lenders and specialist ones offer such loans.
• A saving of money: They’ll know what constitutes a good loan agreement and ensure you don’t settle for anything less.
• Access to exclusive deals: Through their existing relationships with lenders, brokers can get you a loan with rates and terms you wouldn’t be able to find alone.
• Access to a wider range of lenders: Some lenders are only accessible through a broker. Having access to a wider pool of lenders also means access to a wider range of deals, and therefore a better chance of landing low rates.
• Assistance in improving your mortgage application: Brokers know what Shared Ownership lenders are looking for and will be able to help you submit an application more likely to get a green light.
• Advice tailored to your circumstances: All of the brokers we work with undergo rigorous training and are annually tested to ensure their knowledge is up to the latest standard.
• Knowledge on which developers and housing associations offer Shared Ownership properties: The brokers we work with are based throughout the UK so you can get matched to one who knows the rules and regulations in your area.

How much do Shared Ownership mortgage brokers charge?

An initial consultation with the brokers we work with is free. After that, the broker

will detail the price of moving forward. Some will charge you a percentage of the loan amount, usually less than 1% of the mortgage amount, while others charge a fixed fee.

All of the Shared Ownership mortgage brokers we work with must agree to our fair fee policy, which means they will only get paid on success. They will refund any upfront charges if they fail to get you approved for a mortgage.

Fee-free brokers

There are also brokers who don’t charge a fee, but the old ‘you get what you pay for’ adage applies here. Fee-free brokers are less likely to have access to exclusive deals and cannot guarantee the same level of service as ones who charge a fee.

If a fee-free broker is your preference, we can take that on board and match you with one who doesn’t charge. But bear in mind that any broker fees are usually recouped in the long run because of the amount you can save in interest over the course of the mortgage.

Get matched with a Shared Ownership mortgage broker

Buying a portion of a home from a housing authority or developer and applying to the government scheme as well as to a lender for a loan means more organisation and

preparation as well as an increased potential for things to go awry.

Working with a mortgage broker for Shared Ownership will speed up your application process as well as the search for a lender while mitigating any risk of rejection. The brokers we work with know what Shared Ownership can guide you from application to completion and even beyond.

Call 0808 189 0463 or make an enquiry today to get matched to a broker and schedule a free, no-obligation consultation.