With shared ownership people buy a share of their home between 25% and 75% and paying rent and service charge on the remaining share.
Online mortgage brokerTrussle will now start advising on shared ownership.
Shared ownership offers people a more affordable route to home ownership by buying a share of their home between 25% and 75% and paying rent and service charge on the remaining share.
Homeowners are then able to gradually build up the amount of their share in the home, known as ‘staircasing’, with the option to buy up to 100% of their home.
Ishaan Malhi, chief executive and founder of online mortgage broker,Trussle, said:“Our research shows that more than half (58%) of people aged between 18 and 34 are still living with their parents, highlighting the financial struggles they face as they attempt to step a foot on the property ladder.
“AtTrussle, we’re fighting for fairer mortgages to make home ownership accessible across the board.
“That’s why we’ve taken the decision to open our door to shared ownership applicants, to help more young people buy their first home, as well as help growing families, downsizers, divorcees and people moving regions for work, into affordable homes.”
The demand for this scheme has grown, with over 13,400 shared ownership completions in 2018, a 69% increase than those in 2010. More than 200,000 households are now living in shared ownership homes.
Working with 90 lenders,Trussle’s customer operations team of over 60 has access to over 150 shared ownership mortgage products.
Dilpreet Bhagrath, mortgage expert atTrussle, added:“The reality in today’s housing market is that many renters are unable to save enough for a deposit to buy their own home due to steep rental payments and living costs.
“With average house prices nearly eight times the average UK wage, it's clear to see how many people struggle to get onto the property ladder.
“Shared ownership could offer a route into home ownership more quickly than buying a home outright. While there are still rental payments due on the share of the property that you don’t own, it’s possible to build equity in the property right up until you own one hundred per cent of the home.
“The scheme could also allow borrowers to purchase a home closer to work or family - something they might not have been able to afford otherwise.
“While more choice on the market will help more people to reach home ownership, it’s always worth speaking to a broker first to consider the options available to you for your personal circumstances.”
