With homeownership at its lowest level in over thirty years, many mortgage brokers are highlighting just how important shared ownership is in getting first-time buyers onto the property ladder. Chris Schutrups, the managing director and founder of The Mortgage Hut, is typical of many who say, that with homeownership down to 64% in the UK, shared ownership is now a lifeline for countless first-time buyers.
Chris explains: “The biggest obstacle in buying a home for most first-time buyers is finding the deposit which can be up to 20% of the property purchase price. However, using the shared ownership scheme, in some cases, you only need a deposit of £2,500. For those who can’t afford a full deposit, it’s a real lifeline.
“A lot of people tend to think that with shared ownership mortgages it’s not possible to completely own a new house yet although you only buy a percentage of the new home to begin with you can own 100% after time.”
As shared ownership continues to grow in popularity, mortgage lenders such as Mansfield Building Society and Dudley Building Society have extended the availability of the government initiative first introduced back in the early 1980’s.
With interest rates also at a record low and savings yielding no significant interest payments as a result, The Mortgage Hut believes shared ownership, available for new homes, will continue to be “one of the best ways to get on the property ladder.”