Taking out a Mortgage on a house is a big commitment. There are some people, especially first-time homeowners, who are not ready for this kind of commitment. In this situation-shared ownership Mortgages is something to look into. Basically, this is a system that allows you to rent and own a home at the same time. This kind of Mortgage is ideal for anyone who is not up to the commitment.
This kind of Mortgage is ideal for people who want to own a home, but do not have the proper funds to actually own a home. With shared ownership Mortgages you only pay 25%-50% to a housing association, basically, you only purchase a part ownership the property, as opposed to owning the property. One of the down sides to this is if the houses price goes up you will not have the ability to benefit. For those who just would like to own a home, this is a great method though.
How can you tell if you qualify for a shared ownership Mortgage though? There are some factors that determine whether you qualify for this kind of Mortgage. Things like income and employment are often looked at before you qualify. Another thing that may be required is proof that the buyer wouldn’t otherwise be able to buy 100% of the property. The housing association you buy from wants to know shared ownership is something you need to do, while at the same time you are reliable enough to keep up with payments.
Shared ownership is a good thing, it helps first-time buyers get a property they wouldn’t normally be able to get. This is a good opportunity for first-time buyers to also save up for ownership of a full property. This is a long process; the proper research will help put it into perspective.