| Shared Ownership Mortgage Loans are frequently | | | | according to the mortgage company. |
| common with new homebuyers. These are mostly | | | | Self Certified Mortgage Deals Are an Option - For |
| preferred because they only require a small | | | | those who may have lost their employment or are |
| percentage of the cost for the deposit. Here are 5 | | | | self-employed, there are self certified mortgage loans |
| things to note about shared ownership mortgage deals. | | | | available. These mortgage deals are also good for |
| Home Owners Only Receive a Percentage of | | | | those who have income through commissions or |
| Ownership - With Shared Ownership Mortgages, the | | | | multiple resources. Other means can be used to attain |
| home owners/investor only has a certain percentage | | | | income verification such as an accountant's certificate |
| and is sharing the property ownership. The amount | | | | or employers letter (often called letter of intent). These |
| usually invested is about 25 to 50 percent. The other | | | | mortgage deals do have their restrictions such as the |
| portion coming from a housing association. This is an | | | | mortgage lender may only allow potential owners to |
| affordable approach, however, home owners often | | | | borrow less than 85% (ltv) or loan-to-value. Because |
| lose out on some of the equity in the house because | | | | of this, it is feasible a greater deposit will need to be |
| they do not own it 100%. | | | | put down. Those who offer a higher loan value often |
| 'Stair Case Method' - There is a method called | | | | charges higher rates of interest. |
| 'staircase'. This is where the owners who pay a | | | | Share-To-Buy Ownership Is Available - Along with |
| particular portion for ownership in the house can pay a | | | | Shared Ownership Mortgages, it is a possible to invest |
| share of the property in the coming years. This is a | | | | in share to buy mortgage deals which allows people to |
| reasonable option for those who want to achieve | | | | share property ownership with friends and/or family |
| more out of their property. owners can also borrow | | | | instead of a housing association. These are also |
| funds against the equity of the building in the event of | | | | known as joint mortgage deals and neither party can |
| a financial crisis. | | | | sell without the other's agreement. That is why it is |
| Shared Ownership Mortgage Deals are Limited - | | | | vitalof the utmost importance to carefully select joint |
| These type of mortgages are very limited due to the | | | | partners before advancing. |
| poor conditions of the current property market. To get | | | | Tenants in Common - Either party of a joint ownership |
| eligible for this type of mortgage, the individual must be | | | | mortgage deal can dispose their percentage either |
| able to show their livelihood. A few mortgage lenders | | | | through a will or while still alive. This is a great idea for |
| will offer this type of mortgage loan with various | | | | friends or family who share property ownership but do |
| interest rates. The most common interest rate is 7.3 | | | | not live together. |
| percent APR. Again, these rates are different | | | | |