With property prices rising over the past decade, it’s not been easy for prospective first-time buyers. Don’t take our word for it – the numbers speak for themselves.
- £228,000 Average house price – eight times the average wage in the UK[1]
- 38% Number of 25- to 34-year-olds owning their own home, down from 55% 10 years ago[2]
Why shared ownership?
With this fall in homeownership, the industry has taken steps to provide innovative solutions to support deposit-constrained buyers and many may consider shared ownership as a sure-fire way of stepping onto the property ladder.
But why?
- This type of lending offers first-time buyers the chance of finding their own place.
- It can secure a first-time buyer’s desired property at a more affordable price.
- With lower deposits in place, these properties are generally more accessible than standard mortgages and more secure than private renting.
However, they aren’t necessarily straightforward which is where a specialist lender can help.
Did you know?
Kent Reliance for Intermediaries are one of around 20 other lenders now supporting shared ownership schemes.
- Two and five year fixed products available
- Manual underwriting to assess each case
- Up to 100% maximum share value (MSV)
- Up to 75% LTV
- Minimum client share 25% of property value
- Max client share 75% of property value
- Repayment options only
- Loans up to £1m
- Options for those with Debt Management Plans, CCJs, bankruptcy and credit defaults
- Product fee can be added to loan (except when taking 100% MSV)
See how we’ve helped others
Take a look at the following case studies and see how we’ve helped on previous shared ownership cases. Maybe you’ll find the answers that you’re looking for.
Shared ownership case with adverse credit
£70k loan | Shared ownership | Joint application | Leicestershire
Scenario
- A joint application for a £70k loan to fund the purchase of a small mid-terraced house in Leicestershire. Applicants were looking to fund a 50% share.
- Evidence was sought of the current financial situation of the applicants. We found that a default of around £400 had been registered over three years ago by one of the applicants, and was satisfied prior to the application.
Outcome
- As this fits our CCJ/default policy check of having registered the default over three years ago and satisfied prior to the application, we were able to accept the application.
- Both applicants’ bank statements had also been well maintained over time, so we were happy to proceed.
Client with no deposit
£70k loan | 40% share | Shared ownership | Kent
Scenario
- Sole applicant applied for a shared ownership mortgage on a leasehold studio flat in Kent of £70,000 on a capital repayment basis.
- The property was valued at £175,000 and managed by a local housing authority with a good reputation for managing its portfolio.
Outcome
- Applicant had no adverse credit history, so we were happy to accept the application.
Interested to know more?
Speak to your senior business development manager or call our broker liaison team on 01634 888260 and they’ll be happy to help you.
Get in touch with us today to see if you can help someone find their independence and become a homeowner.
[1] ONS House Price Index (January 2019); ONS Average Weekly Earnings (January 2019)
[2] ONS English Housing Survey 2017-18
