Shared Equity Mortgage Quotes & Advice

Shared equity mortgages are only offered by a limited number of banks and buildings societies, so we do not recommend using our online quotes system to search for shared equity mortgages.

Simply fill in the form below to get free quotes from one of our qualified mortgage advisors. We will contact you to discuss your needs and circumstances and provide you with whole of market advice and illustrations for any suitable products.

Shared Equity Mortgages Explained

Shared equity mortgages are only available to purchase property on certain government schemes and through various new build developers. An example of such a scheme is the homebuy direct initiative.

In essence they are quite similar to shared ownership mortgages. The property developer or vendor sells you a percentage of the property and retains a share of the ownership themselves often with seventy percent owned by the applicant and thirty percent owned by the developer.

The remaining share is let to you for a very nominal rent, which may be in the form of a very low interest loan made by the developer. It is the expectation that at a later date you will buy out the remaining share from the developer.

Shared equity mortgages will be considered as relatively high risk loans and so the interest rates are unlikely to be as competitive as those for normal mortgages.

In order to arrange a shared equity mortgage you will first need to find a property offered on such a scheme. Your local council may be able to provide you with information on suitable developments in your area; it may also be worth speaking to local housing associations to see if there are shared ownership properties which could be available.

Pros and Cons of Shared Equity Mortgages

Pros:

• very affordable housing opportunities
• a lower initial deposit requirement than a normal purchase
• new build properties are typically very energy efficient and with construction guarantee's

Cons:

• requirement to purchase further equity at a later date
• limited options in terms of lenders and interest rates
• there may be application restrictions as to who can buy under these schemes