The Shared Ownership scheme was introduced following the credit crunch in 2012, the scheme gives first time buyers and home movers the chance to buy a share of a property and then rent the remaining part of it.
Shared Ownership will let you take out a mortgage/purchase a share of a property. This is a percentage-based share; usually, you will have to own a share of at least 25%-75%. However, in recent times, some properties are letting you have a share as low as 10%.
You will also have to pay rent back on the remaining share of the property. Your mortgage bills should be lower as you’ve taken out a mortgage on a lower share, so you should be able to compensate for the rent payments.
Furthermore, since you’re taking out a lower share in the property, your initial mortgage deposit should be lower. Maybe partial homeownership is the route that will help you get onto the property ladder.
Although it can differ based on your credit history, since it’s likely that you’re only purchasing between 10%-75% of the property, the minimum deposit required should be lower.
Here’s an example of how Shared Ownership would work. If you take out a 50% share of a property that’s valued at £250,000, you’ll only need to borrow £125,000 for your mortgage. In addition to this, say that you’re required to put down a 5% deposit, you’ll only have to supply £6,250 rather than the whole £12,500 if you were to take out a 100% mortgage on the same property.
Once your Shared Ownership papers have gone through and you’ve put down your deposit, just like any other mortgage type, you’ll start paying back your mortgage each month. You’ll also be paying rent to the housing association that is linked to the property.
In theory, your combined mortgage and rent payments shouldn’t be as much as if you were to have taken out a 100% mortgage. Your mortgage advisor in Coventry can go through the costs with you.
With any type of mortgage, you’ll be faced with a few different costs and fees; the same costs should apply to Shared Ownership.
You’ll have to consider obvious set-up/mortgage arrangement fees and possibly booking fees. There may also be a stamp duty charge on your property, it depends on the property price and how much you’re buying it for. You can speak to your mortgage advisor in Coventry about stamp duty to find out which threshold your property is in. Don’t forget about solicitor and legal fees too.
Costs may vary depending on the property that you’re buying. Deposit size, monthly payments, arrangement fees will differ from property to property.
You’ll have to match the Shared Ownership criteria before you can move forward with your application:
Although this may seem like a long list of requirements, you must remember that most of the other home buying schemes are the same or have an even longer list! At the end of the day, the scheme was made for a specific target audience, so if you don’t match it, it probably isn’t for you.
Our team has been working as a mortgage broker in Coventry for over 20 years now. Along the way, we have helped many applicants secure Shared Ownership mortgage products – it’s one of our many specialities.
Shared Ownership fits within the government-led ‘Own Your Home‘ project. There are many different schemes available through this project; you can find out more information here. We offer a free Shared Ownership mortgage appointment to every customer. Book online today and speak with a mortgage advisor in Coventry at a time that suits you.
Buying a home can be a stressful experience, which is why home movers and first time buyers in Coventry use a mortgage broker to help make sure their home buying process go as smoothly as possible. It’s comforting for our customers to know they have someone on their side, on hand to answer any enquiries they have.
A mortgage advisor in Coventry will ensure you obtain the cheapest mortgage to suit your needs. We take full responsibility for recommending the most suitable mortgage for you and package your application to the Lender in such a way to give it the best chance of success.
The same applies when you come to remortgage too, we like to know our customers are on the cheapest deal for the entire mortgage term.
If you’re looking at taking out mortgage advice when buying a home, we recommend talking to a mortgage advisor in Coventry. Your committed member of the Moneyman team will be able to help you work out how much your payments will be, as well as how much you may be able to borrow.
That said, different lenders have their own strict lending criteria, so it does help to speak to an expert. If you know what you can afford well in advance of making an application, it may help you avoid any potential future disappointment.
We aim to ensure all customers are informed about their mortgage application progress so you are fully aware of what is going on. If you have any questions, we are available seven days a week, ready to help you out in any way we can.
Mortgage Brokers work for the customer, not the Lender. This is something that is important to remember throughout your process. Our team are firmly in your corner, sometimes having to argue how strong an application may be, in order to ensure it goes through.
Our company process of requesting and checking your proof of income and bank statements ahead of time allows us to try and avoid any hurdles that may arise, hopefully before they can become a factor.
We also can help you choose the right type of survey for your property, as well as instruct a Solicitor on your behalf to carry out the legal aspects of your transaction.
We love to build up customer relationships and assist with future mortgage enquiries, whether as a buy to let landlord in Coventry with your portfolio or remortgage when your term ends. This often starts with an affordability assessment and agreement in principle prior to even finding a house.
Once your purchase is complete, a member of our team will keep in regular contact, and we will get in touch once more to discuss your remortgage options. We can then compare the market on your behalf as we did before to help you obtain the best remortgage deal available for your circumstances.
We tend to find nowadays that more parents are gifting a deposit than ever before. Realistically, the “Bank of Mum & Dad” is now within the UK’s top 10 biggest lenders.
It’s no surprise how many younger people struggle to save enough for a deposit and lean on their parents or friends to help gift part of the entire housing deposit. Some parents or other family members, such as grandparents, are now gifting amounts upwards of £24,000.
Hundreds have become reliant on a family member every year, hoping to help them onto the property ladder. When speaking to some customers, we found that they felt a sense of personal responsibility.
It’s no surprise why many need that extra support, an increase of property prices, that has gone way over the average wage, leaving many unable to save for the deposit on their first home while coving the expenses of rent and utility bills. That said, it’s become more apparent if there is only one income supporting the household or being a sole applicant.
While renting may seem helpful in the short term, it can harm any chance people have to save for a mortgage deposit in the long run. Some decide to move back in with their parents to help save up the necessary costs for a larger deposit. Surveying 1600 parents who had helped their children out, many went on record as saying they had used their savings to do so.
Another concern is that some said they had withdrawn from their pension schemes or equity to gift a deposit. Essentially, this is them putting forward any inheritance their child would receive.
To read about what could be available to you, read our help to buy mortgage in Coventry service page, or check out our first time buyer in Coventry service page. If you like to arrange to speak with a mortgage advisor in Coventry, please feel free to get in touch with us today.
If you are taking on the mortgage process, you may be wondering whether or not you should take out mortgage advice in Coventry. At the end of the day, it’s all down to personal preference, as well as your finances. In many cases, however, it can be beneficial to get a second opinion.
It should be the job of a mortgage broker in Coventry to save you both time and money, making your process as stress-less as they can. This is something we pride ourselves on as a company. Whether you’re buying a new home or remortgaging an existing one, a lot of the time, we are able to help.
We have been working within the mortgage industry for a long time, with over two decades of experience. This means we know a variety of mortgage situations inside and out, with knowledge on exactly where to find the best mortgage deals for you.
There are all kinds of different reasons as to why people may get in touch with an expert mortgage broker in Coventry for mortgage advice in Coventry.
We sometimes see customers getting in touch with us after they have already spoken to their banks mortgage advisors in Coventry and been declined. As such, they may find themselves in need of an expert, unbiased opinion regarding their mortgage situation.
Another area we regularly help with, is first time buyers mortgages in Coventry. We love being able to help people find their footing on the property ladder with their first ever home purchase! It can be a stressful process and we try to make it as simple as possible.
No matter the mortgage situation you are in, whether self employed and struggling to evidence income, moving home and stuck in a property chain, looking to increase your portfolio of buy to let mortgages in Coventry or even something else, a mortgage broker in Coventry is here to help.
When you get in touch with us, you reap the benefits of a free mortgage appointment with an expert mortgage advisor in Coventry. They will sit and chat with you about your plans for your property owning future and gather initial information from you, to help with your process.
It’s the job of a dedicated mortgage advisor in Coventry to help you through every single step of your mortgage process. This includes obtaining an agreement in principle for you, if you need us too, which can typically be done within 24 hours of your initial mortgage appointment.
From there it’s on to the next stage of your journey, whether that be making offers on a property you would like to buy or looking at better deals with a mortgage advisor, if you are instead looking to remortgage in Coventry on your home.
Once you have progressed through this next step of your process, your trusted mortgage advisor in Coventry will be able to compare mortgage deals for you, on your behalf. They will look at both your financial and personal situation, finding the deal that is likely to benefit you the most.
No matter what, your mortgage broker in Coventry is here to help, staying by your side throughout every leg of the journey. No question is a silly question and we will answer all of your queries and concerns as promptly and clearly as we can, to keep you at ease during your experience.
As an open & honest mortgage broker in Coventry, it is always the aim of our employees to deliver a high level of customer service. Through providing a fast and friendly service and being extremely responsive, we go the extra mile for our customers, no matter their circumstances.
When a customer gets in touch with us for mortgage advice in Coventry, we always consider every situation that is presented to us. Whilst we may not be able to help everyone, we will do everything in our power to ensure it can go in your favour.
Please feel free to take a look at our amazing customer reviews, as a way to see the levels of customer service we are able to provide. How we deliver our customer service is something that is at the heart of what we do, it motivates us everyday.
Your trusted and dedicated mortgage broker in Coventry is available 7 days a week, from morning until late, including weekends and some bank holidays, subject to appointment availability.
Do not ever hesitate to get in touch, give us a call or use our online booking form and we will see how we can help!
The Lifetime ISA scheme provides a great opportunity for First Time Buyers to get onto the property ladder and many people don’t even know what it is. The scheme is often confused with the Help to Buy ISA; they have similarities but they also have their differences.
Since first time buyers in Coventry massively benefit from this scheme, as your Mortgage Broker in Coventry, we thought that it would be a great idea to share with you what the Lifetime ISA is and how it can help you start your mortgage journey.
To make it nice and simple, a Lifetime ISA is a savings account where your money grows tax-free. As a bonus, on top of whatever you save, the government will gift you an extra 25% of your savings.
Unfortunately, there is a catch though. There is a maximum amount that you can save each year and it’s only £4,000. On the other hand, if you include the extra 25% bonus, you will get an extra £1000, making your overall savings £5,000.
The proceeds of your savings account can be used for two different things. Firstly, the Lifetime ISA can be used to purchase your first property. So, if you are a first time buyer in Coventry and are looking to hold off your First Time Buyer mortgage journey for just a little bit longer, the Lifetime ISA could be for you.
The second use for the Lifetime ISA is for savings for later in life. Although, as we are a Mortgage Broker in Coventry, we only see clients who are using the ISA to purchase their first home. So if this is what you want to use the Lifetime ISA for, you should check out the official governments Lifetime ISA page here: https://www.gov.uk/lifetime-isa.
In order to qualify for the Lifetime ISA, you need to meet a few different requirements:
First Time Buyer making a purchase…
For more useful information on the Lifetime ISA, you can check out the official government’s page here: https://www.gov.uk/lifetime-isa.
If you already feel like this is for you, feel free to get in touch with your Mortgage Broker in Coventry and we will help you get the ball rolling.
Does the Lifetime ISA scheme appeal to you? Do you feel like it could benefit your First Time Buyer mortgage journey? If so, now is the perfect time to speak to your Mortgage Advisor in Coventry.
We don’t just specialise in giving Lifetime ISA Mortgage Advice in Coventry, we cover a wide variety of mortgage situations. We have got you covered and are here to help!
We have been in this game for over 20 years now and we can’t wait to share our knowledge with you.
We constantly get asked “How much can I borrow”, it is by far the most popular question we receive as a Mortgage Broker in Coventry, particularly from first time buyers in Coventry. Let’s look at the background of affordability assessments and how they apply post-2014.
Before the days of credit scoring, mortgages were manually assessed by your local Building Society Manager. Lenders moved towards more uniform income assessments to provide a consistent approach in the 1990s.
Maximum lending “caps” were introduced so that customers couldn’t borrow more than three to four times their annual income.
Near the time of the credit crunch in the 2000’s, these income multipliers kept becoming more and more generous. Of course, some lenders allowed their customers to “self-certify” their incomes with no background checks such as payslips.
This all went very wrong and it was a struggle to get onto the property ladder from 2008-2010. This is because lenders battened down the hatches and created an extremely cautious (over-corrected) lending environment.
In 2014, following the recovery of the market, the regulator launched the Mortgage Market Review (MMR). This was a new set of guidelines for lenders to adhere to which said goodbye to the old-style income multipliers which were being replaced with new, more sophisticated affordability calculators.
These new calculators provided a closer look into an applicant’s spending habits and net disposable income. This meant that the lender could have an in-depth look into your bank statements to ensure unaffordable mortgages were not granted as they were before the Mortgage Market Review.
There is still a “lending cap” in place at about 4.75 times your annual income but your expenditures are also analysed. For example, Lenders seem to penalise low-earners and even things like gambling can sometimes affect your chances of being lent the money. Some take pension contributions as a fixed outgoing so would often lend, say a public sector worker with a big pension deduction less than a private sector and so on.
If you are looking to maximise your borrowing capacity to make sure that you get the home you want to buy then we recommend speaking to a Mortgage Broker in Coventry, like us. A specialist mortgage advisor in Coventry will research the market on your behalf and try to find a lender that will lend you the right amount that you need.
Before you take out a mortgage you should talk to a Mortgage Advisor in Coventry and work out your finances together to ensure that the repayments feel comfortable to you. Which is how it should be.