Shared ownership, is there rent to pay on top of the mortgage?
What is shared ownership?
Can a student get a mortgage if a parent stands as guarantor?
Asked on Dec 2 2013,
General in Prudhoe |
The shared ownership scheme is one that is designed to help people who cannot afford to get onto the housing ladder a chance to get on it with a little boost.
It means that they will typically get a mortgage for a share of the property (usually 50 per cent) and from there they will have to pay rent on the remainder. Over the years, they can build up the proportion of the home that they own to eventually own 100 per cent of it.
It is for people who can prove they would not be able to buy a home otherwise, earn £60,000 or less per year and need to get themselves onto the ladder.
I'm not sure where this process stands with regards to students though. However, mortgage criteria are generally the same with this scheme as they are for a normal mortgage, and you would need to be able to prove that you could afford to pay for your part of the home as well as being able to afford the rent.
To get a mortgage under shared ownership, you must have a contract of permanent employment with an income sufficient to pay back the loan as well, which may be where you fall short as a student.
Answered on Jan 2 2014,
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