Shared Ownership mortgages have become increasingly popular as housing costs continue to pressure buyers.
- Originally launched in 1980, Shared Ownership aims to help buyers who struggle with deposits.
- Recent competition in the Shared Ownership market has introduced diverse options for first-time buyers.
- The end of Help to Buy in March 2023 leaves Shared Ownership as the sole government-backed scheme.
- Mansfield Building Society’s enhanced criteria addresses affordability for borrowers with credit issues.
Shared Ownership mortgages, gaining traction since their inception in 1980, provide a feasible avenue for individuals struggling to save substantial deposits. This scheme allows buyers to purchase a portion of a home, paying rent on the remainder, thus easing the financial burden endured by first-time buyers.
Competition in the Shared Ownership sector has intensified, opening doors to a broader spectrum of mortgage products. As new lenders enter the arena, prospective buyers benefit from a healthy competitive market, offering numerous options tailored to individual circumstances and increasing accessibility to housing.
The cessation of the Help to Buy initiative in early 2023 leaves Shared Ownership as the last standing government-backed scheme designed to assist home buyers. This shift amplifies the significance and rising demand for Shared Ownership products as the UK housing market witnesses escalated living costs and inflation.
The Office for National Statistics has revealed daunting figures, indicating that London homes cost an average of 13.9 times the household income as of 2023, with a slightly lesser but still substantial 8.3 times outside the capital. This staggering data underscores the challenge faced by many in securing traditional mortgages amid rising property prices and interest rates.
To address affordability, the Mansfield Building Society has adapted its Shared Ownership product criteria to cater to a wider demographic. Their offerings include options for borrowers with minor credit hiccups, such as past missed payments. The products offered are structured to support various client needs, including purchases, remortgages, and staircasing to increase property share over time.
Borrowers can access up to 95% of the home’s share with a modest 5% deposit through these plans. Mansfield’s approach includes both 5-year fixed rate mortgages, which focus on affordability, and flexible 2-year fixed rate deals with post-term discounts. This flexibility allows for a tailored fit to the financial situation of numerous clients.
In today’s challenging financial climate, Shared Ownership mortgages facilitated by Mansfield’s individualised underwriting offer a plausible pathway for securing home ownership. With no product fees and enhanced credit criteria, these products extend accessibility to those hindered by traditional mortgage structures.
Exploring the Shared Ownership market may provide a viable solution for many aspiring homeowners amidst evolving economic conditions.
