Shared Ownership
Yes! It is possible to arrange a shared ownership mortgage for you, even with bad creditYour home/property may be repossessed if you do not keep up repayments on a mortgage or other debts secured on it.
What is shared ownership?
Shared ownership allows buyers to purchase a share in a property, this can be either a new build or resale property.
The purchaser pays a mortgage on the share they own and pays rent to a housing association on the remaining share. Because the purchaser only needs a mortgage for the share they are purchasing, the amount of money required for a deposit is usually a lot lower when compared to the amount that would be required when purchasing outright. in some cases no deposit is even required.
In addition, you can normally buy additional shares in the future allowing you to eventually own 100% of the property if you so choose. This is called staircasing.
Typically, you would purchase a share between 10% and 75% of the property and pay rent to the housing association for the remaining share.
If you decide to sell in the future, you will just sell your share like you would any standard property. If you have any questions, contact Henry James Mortgages Ltd! we will be delighted to answer all your questions.
Why buy a shared ownership home?
Shared ownership can be very helpful for people who would like to own their own home but can’t afford to buy the property outright. Shared ownership costs are usually lower than an outright purchase, especially if you have a bad or poor credit history:
- The rent charged on the remaining share is usually less than would be charged on the open market
- You can buy a share as small as 10% in many cases
- Your deposit can be as little as 5% of the share price (or even NO DEPOSIT in some cases)
- Stamp duty can be lower depending on the purchase value and option chosen
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