Shared Ownership Mortgages lenders are not easily available because some lenders feel that a share home ownership mortgage is more risky than a regular home mortgage. A shared ownership mortgage means that you own part of the property and the other part is shared with a Housing association. In this kind of arrangement you would be paying rent to the Housing association for the part of the property they own even though they do not physically live in the home, but you do.

Percentage of Shared Ownership

Eventually your share of the ownership mortgage will increase until it is owned totally by you. This process happens gradually and will depend on the agreement you made with the Housing association. This agreement is called staircasing. Due to the rising costs of homes more people are looking for shared ownership mortgages. These types of mortgages allow more people to actually own a home which is every Americans dream. Some leaders because of this are now offering one hundred per cent mortgages on shared ownership mortgages.

A big advantage of a shared ownership mortgage is that the property will often be brand new and this type of mortgage lets new home buyers into the market that otherwise would have been left out.

Using a Mortgage Specialist

When looking for a shared ownership mortgage lenders be sure to talk to a mortgage specialist before you enter into any agreement. A home mortgage specialist will be able to give you the best advice on mortgage interest rates and any risks that may be involved in taking out a mortgage. This advice can often be invaluable because mortgage lenders know all about the market conditions, as well as how to get the best possible mortgage rate.

Here are some basics you should know about mortgage lenders. First since you are only buying part of the property your deposit will be much lower than if you were purchasing the entire property by yourself. Normally a ten percent deposit is required for your share. You can start with as little as twenty-five per cent of the property value. Only part of this property will be yours and you are allowed to live on the property and you have to pay mortgage repayments. This type of mortgage is excellent for anyone looking to buy a new home and doesn’t have a lot of money.