Different Types of Mortgages

Shared ownership is a type of mortgage that is slightly different to a residential mortgage, as instead of buying the whole property, you buy a share. You’ll pay a mortgage on your share, then pay rent on the rest.

If you’re a first-time buyer, saving a big deposit can be tricky. That’s where shared ownership mortgages can help. They’re also known as ‘part buy, part rent’ mortgages and are offered by housing associations.

Shared ownership mortgages could allow you to buy between 25% and 75% of a property with a housing association, paying rent on the rest. To get started, all you need is a 5% deposit towards the part of the home you’re buying.

Who can get a shared ownership mortgage?

Shared ownership mortgages are available to people living permanently in the UK who are:

• First time buyers.
• Previous homeowners that now can’t afford to buy.
• People who already live in a shared ownership home.
• People who are renting a council or housing association property.
  Households that earn less than £80,000. (The limit goes up to £90,000 if you live in London.)