Edge of Bankruptcy

Submit Enquiry

Name

Email

Phone:

Enquiry Type

Comments

Enter Code:
Captcha

Shared Ownership Mortgages

Introduction:

Shared ownership mortgages were formed to help people buy the property of their own, when they cannot afford to buy full property at a time. The share of property is usually 50%, but may also be 25% or 75%, and is purchased from housing associations. Thus you own a certain shares of property and pay rent on the remaining part of the property. You will not be asked to share the property with someone else and may mortgages and rent for the property.

Demands for shared properties are growing continuously and there are limited vacant properties and even if you meet the criteria for shared ownership, you may be asked to wait for some time. Once you have become a shared owner, you are bound to pay all utility bills and taxes and your responsibilities include that of a full owner. Most of the housing associations provide you the opportunity to purchase share and become a full owner as and when you can afford to buy the shares.

Social Landlords:

Social landlords are non-profit organizations such as housing associations or housing societies. These social landlords provide home for rent and sale to those people, who cannot afford to buy.

Shared Ownership Lease:

If you buy a property as a shared owner, you enter into a contract with the social landlord. The contract is a legal document, which provides you a lease usually for 99 years. You occupy the house and your responsibilities include that of a full house owner. Social landlord further provides you the opportunity to purchase full shares as per the certain clause provided in the contract. As it involves legal documentation, you are advised to legal help before entering into contract.

Houses offered for shared ownership:

Renovated houses and flats are generally offered for shared ownership. Sometimes a few new houses may also be offered. Prices of these houses or flats are generally below than the prices of properties available sale in the market in the same area.

Shared Ownership Mortgages:



The amount of share, you purchased for a shared ownership is mortgaged, which you will have to arrange and the rent for remaining part of the house will be deposited with the social landlords.

Mortgage Selection:

Before selecting any of the mortgage option, you should see your financial health and repayment capabilities. You will also have to pay service charges, charges for utilities, and other taxes. On the basis of all your financial capabilities, you should select a share 25%, 50% or 75% of the property. The benefit of higher share will allow to pay less rent for the remaining part of the property. The common part of mortgage includes fixed rate mortgage and adjustable rate mortgage.

In fixed rate mortgage, the interest rate remains same for throughout the mortgage periods. Some mortgage may be as high as for 30 years and some may be lower periods. The benefits of fixed types of mortgage are that you can plan in advance the amount to be paid.

In adjustable rate mortgage, interest rate generally starts lower than the fixed rate mortgage and may vary once or twice during the year as these rates are linked to a financial index. Depending on financial index (Treasury Security Index for United States) the rates may be either low or high. As the initial amount in these rates is always lower than the fixed rate mortgages, a more mortgage loan can be secured for the same burden.

James has been writing about shared ownership mortgages for many years and offers information on the different types of mortgages available from the web site http://www.1mortgagesuk.co.ukThis article is free for republishing
Source: http://www.articlealley.com/article_67303_19.html


Don't Miss...
  1. Cons of a Reverse Mortgage
  2. Mortgages,UK Mortgages,Home Mortgage,Mortgages Loan Rate,Best Mortgage Rate,Adjustable Mortgages UK
  3. UK Remortgage,Remortgages UK,Adverse Credit Mortgages,Commercial Mortgage UK,Online Mortgage
  4. Reverse Mortgage Information - Who Qualifies For Reverse Mortgages
  5. Mortgage Interest Rates
  6. Getting a Mortgage - Weighing Your Options
  7. Fixed Rate Mortgage Loans - Understand The Pros And Cons Of The Fixed Rate Mortgage
  8. Bad Credit Second Mortgage by the Numbers
  9. Is A Reverse Mortgage For You?
  10. All You Need To Know About The AARP Reverse Mortgage Page
  11. Choosing A Home Mortgage Loan - One Size Does Not Fit All
  12. Deciding Which Mortgage Loan Is Right For You
  13. Basic Information You Need to Know about Getting Home Mortgage Loan
  14. Buy-to-Let Mortgage Brokers
  15. UK Mortgage Rate - A Good Method To Get An Attractive One
  16. Mortgage:Choosing the best loan program
  17. Mortgage Protection easing your biggest concerns.
  18. Real Estate Financing - What You Should Know Before Getting A Home Mortgage
  19. Buy To Let: Which Mortgage Is Right?
  20. Florida Refinance Mortgage Rates Are Rising
  21. Should I Refinance my Mortgage
  22. Types Of Mortgage
  23. Should You Refinance Your Mortgage?
  24. Mortgages – Maryland Mortgage Primer
  25. The Basics Of A Commercial Mortgage
  26. The Adjustable Rate Mortgage as Long Term Loan.
  27. Mortgage Rates - How Low Can We Go?
  28. Mortgage Tips for First Time Buyers
  29. Looking for a Mortgage Broker Kent
  30. Benefits of Mortgage Refinance
Latest...
  1. How a Bad Credit Mortgage Works
  2. What Is A Mortgage?
  3. Sub Prime Lenders - Get A Mortgage With Bad Credit
  4. A Beginner's Guide to PA Mortgages
  5. UK Mortgages - Need To Know Information
  6. Mortgage Information for the creditor and debtor
  7. 4 Effective Ways to Minimize Your Interest Paid for Your Mortgage
  8. Bad Credit Mortgages Made Easy!
  9. Spanish Mortgages - Widen Your Horizons
  10. Mortgage Problems and the Myth of Foreclosure Help

© Edge of Bankruptcy 2008. All Rights Reserved