Shared Ownership offers a solution for buyers struggling with high house prices.
- Competition is increasing as new lenders enter the Shared Ownership market.
- Affordability issues are exacerbated by rising living costs and the end of Help to Buy.
- Mansfield Building Society adapts its criteria to meet growing demand.
- Shared Ownership mortgages provide flexible options for first-time buyers.
Since its inception in 1980, Shared Ownership has grown in popularity, providing a viable option for homebuyers who face challenges in raising a deposit. This government-backed initiative is seen as a successful way to assist potential homeowners, especially as house prices continue to rise. The entrance of new lenders into this market indicates a broadening in the range of available products, fostering healthy competition and offering more choices to consumers.
In recent years, the demand for Shared Ownership products has witnessed a substantial rise. This can be attributed to the ongoing cost-of-living crisis and the termination of the Help to Buy scheme in 2023. Data from the Office for National Statistics highlights the stark reality that housing remains largely unaffordable for many, with London homes costing 13.9 times the average household income in 2023.
Addressing these affordability challenges remains a pressing concern. Mansfield Building Society is playing a proactive role by enhancing its product criteria for Shared Ownership mortgages, aligning them with the needs of brokers whose clients cannot meet the criteria of standard lenders. These borrowers may have unique circumstances or minor credit issues that have previously limited their access to mortgage solutions.
Shared Ownership mortgages at Mansfield Building Society extend up to a 95% share (75% LTV) with just a 5% deposit needed, covering houses and purpose-built flats of recent construction. These mortgages are available for purchase, remortgage, and staircasing. Moreover, they cater to individuals with minor historic credit blips, including those who have resolved debt management plans over three years ago or missed a couple of credit card payments within two years.
Mansfield offers products that stress affordability with fixed rates and no product fees, ideal for those looking to reduce cost pressures. There are flexible options with 5-year and 2-year fixed rate products, with the latter transitioning into a discounted follow-on rate, thereby enhancing affordability. For potential home buyers grappling with securing a mortgage, these Shared Ownership options present accessible and viable solutions, aided by Mansfield’s personalised underwriting approach.
Shared Ownership continues to provide a crucial pathway for aspiring homeowners amidst financial challenges.
