Shared ownership and help to buy mortgages

Getting your foot on the housing ladder can be tricky, but help to buy schemes can make it easier. Here’s what you need to know.

Help to buy: equity loan

With a help to buy equity loan the Government will lend you up to 20% of the cost of a newly built home, leaving you to make up the rest with just a 5% deposit and a 75% mortgage.

There are no fees on your Government loan for the first five years.

Things to consider

  • Equity loans are available to first time buyers and people looking to move.
  • They are only available for new build homes.
  • You must not own any other property

Help to buy: shared ownership

With a shared ownership scheme you buy a share of your home – between 25% and 75% of your home’s value – and pay rent on the rest.

Things to consider

  • You can buy a bigger share of your property when you can afford to.
  • You can buy a new home or an older one through resale programmes from housing associations.
  • You need to take out a mortgage for your share of the home’s purchase price (or pay for it with savings).

How DW Financial Services can help

We can help you decide which scheme is best for you, and help you apply for a mortgage that best suits you need.

But we don’t leave it there. With shared ownership schemes it can be difficult to work out when it is best to buy a bigger share of your home. Your income, the affordability of the property and the amount of rent you pay all need to be taken into account. It is sometimes worth paying rent – which is typically low – until you can buy out the entire amount and own 100% of your home.

We will review your situation regularly to make sure you have the best and most cost-effective shared ownership for your needs. When it comes to remortgaging, we can help you make the best decision for you.

Most importantly, at DW Financial Services we will be with you for the lifetime of the mortgage, and always available to talk through your options.

Contact us for more information on help to buy schemes and what we can do for you.