The Shared Ownership Scheme, a UK government initiative, aims to help individuals in taking their first steps onto the property ladder. Open to permanent UK residents, it caters to both first time buyers in Durham and previous homeowners struggling to acquire a new property.

Your household income must not exceed £80,000, and the property you intend to purchase will be primarily on a leasehold basis, meaning you’ll possess it for a predetermined duration.

Through Shared Ownership in Durham, you can secure your home through a combination of a mortgage and rental payments, often lower than standalone mortgage payments.

What percentage of the property in Durham can I borrow?

Originally, Shared Ownership required a minimum ownership share of 25%, but now, for some properties, this has been reduced to 10%. Homeowners have the option to increase their percentage through staircasing, often done at remortgage or when the mortgage on the owned share is paid off.

Now, shares can be increased in 1% instalments, and charges for increasing shares have been lowered. Additionally, landlords cover maintenance and repair expenses for the first decade.

Rules may vary based on when you took out the mortgage, so it’s advisable to check with our mortgage advisors in Durham for clarity.

How do I apply for a Shared Ownership mortgage in Durham?

Qualifying for the Shared Ownership scheme in Durham involves checking eligibility with an agent. They consider factors like income, budget, location preference, and credit history.

Once eligible, preparation for the mortgage application begins. A mortgage broker in Durham, like us, with access to various lenders, is important for navigating Shared Ownership mortgage options.

Pros & Cons of Shared Ownership in Durham

Shared Ownership in Durham, like other schemes, has its pros and cons.

Pros of Shared Ownership

For first time buyers concerned about a mortgage deposit, Shared Ownership typically requires a deposit for the percentage owned. This can significantly reduce the upfront cost, making homeownership more accessible.

Shared Ownership Mortgages in Durham, available through various lenders, provide stability, and the option to purchase the property in the future may be part of the contract.

Cons of Shared Ownership

While Shared Ownership has advantages, be aware of responsibilities. You are responsible for 100% of ground rent and service charges. Approval is needed for structural alterations, limiting complete ownership freedom.

Can I sell my home if I have a Shared Ownership Mortgage in Durham?

Selling your Shared Ownership property in Durham requires owning 100% shares, usually after the initial 21 years, with the housing association having ‘first refusal’ rights.

Sole applicants and those struggling to save for a deposit often benefit most from Shared Ownership. To determine eligibility, consult our mortgage advisors in Durham.

Is a Shared Ownership Mortgage in Durham right for me?

Shared Ownership is a tailored solution, not for everyone. Qualifying criteria apply, and our team is ready to provide guidance. Reach out to our mortgage advisors in Durham for a stress-free Shared Ownership process through a call or a free online mortgage appointment.

Date Last Edited: February 20, 2024