Shared Ownership Mortgage Calculator
See what you can afford to borrow
A shared ownership mortgage calculator can be useful in a number of ways. There are different mortgages calculators available depending on what you are a looking for. For example, is it how much to borrow? What will repayments be like?
We have teamed up with John Charcol to offer these calculators to use on our website. As an independent mortgage broker, they have over 40 years’ experience in finding the best mortgage rates for every type of buyer.
shared ownership Mortgage Calculator
Firstly and probably most importantly if you are a first time buyer, looking to get back on the property ladder or downsizing to a shared ownership property is to find out how much you can borrow.
Because shared ownership is a part buy part rent model typically you will need a smaller deposit and mortgage because you are buyer a share rather than 100% outright with a mortgage. Don’t forget you will pay rent on the share that you don’t own.
Shared Ownership Repayment Mortgage Calculator
Secondly, you can also work out your shared ownership repayment via a calculator.
This calculator will give you an idea of how much your mortgage could cost on a monthly basis. Based on adding how much you are looking to borrow, over how many years and based on a specific interest rate.
Shared Ownership Calculator: Mortgage Comparison
Thirdly, if you are already a shared ownership homeowner. You can use our mortgage comparison calculator to see if you can get better rates for a shared ownership remortgage.
Just add what your outstanding amount is and how much time is left on your current mortgage term.
What type of mortgage?
Also if you are considering shared ownership alongside other home ownership schemes you can find out which mortgage may be more suitable for you.
So there you have it. A good selection of mortgage affordability calculators to use. We hope you find these of use.
You can find shared ownership houses on our website if you are still looking. Both new build and pre owned shared ownership homes are advertised.
shared ownership mortgages calculator, why should i use one?
A shared ownership mortgage calculator enables you to give a quick insight as to whether or not you can afford a shared ownership mortgage. It’s good to try to understand mortgage affordability and what a monthly mortgage payment may look like.
It doesn’t matter whether you are looking for a shared ownership mortgage or buying a property outright with a mortgage. It’s important to know what mortgage affordability will be. Hence using an affordability calculator can help. It’s the reason we have teamed up with John Charcoal is so you can seek independent advice. They are an independent mortgage broker.
A shared ownership mortgage calculator is useful to understand what mortgage affordability would be like. Don’t forget you need to also consider the monthly rental payment to the housing provider with whom you are buying the shared ownership property from. A mortgage affordability calculator helps with this.
Depending on the percentage ownership you are looking for will also affect the remainder of the share that you need to pay rent on. You’ll also need to factor in the likes of service charges and understand what the leasehold charges and costs may be. It is good to seek independent legal advice.
What is the shared ownership scheme?
In essence, the shared ownership scheme is a partial home ownership plan. You buy a portion of a property, while the remaining share is owned by a housing association or a similar provider.
To secure the share you desire, you secure a mortgage, and for the share you don’t own, you pay rent. Your ownership stake is determined based on your financial criteria at the time of purchase. Generally, shared ownership properties range from 10% to 75% ownership.
Additionally, there’s an option to gradually increase your ownership, known as ‘staircasing’. This involves buying larger portions (usually at least 1% at a time) from the housing association. It’s advisable to consult the housing provider for comprehensive information on the shared ownership scheme prerequisites.
Use the mortgage affordability calculator to see what your options are.
Do I need a deposit for a shared ownership property?
Yes, typically you would need to make a deposit when purchasing a shared ownership property.
The deposit requirement for shared ownership properties can vary. It will depend on your mortgage provider and what their requirements are. That’s why the shared ownership mortgage calculator is useful to see what you can afford.
The deposit amount is usually a percentage of the share, rather than the entire property value. This can make the shared ownership scheme attractive to first time buyers, downsizers and those getting back on the housing ladder. It can make it more affordable than a traditional mortgage deposit. The exact percentage can vary, but it’s often around 5% to 10% of the share you’re buying.
how much share can i afford?
This will depend on the amount you have saved for a deposit and your affordability criteria for a mortgage.
You also need to consider that you will need to pay rent on the remaining share of the property to the housing provider.
Affordability checks and stress testing will be carried out once you have decided how much share of the property you are going to buy. They need to be sure you can afford the share based on your criteria and financial changes that may occur in the future such as interest rate rises.
What household income do I need to buy shared ownership property?
Again, this will depend on the share you are going for and the mortgage required on the your shared ownership property.
A mortgage broker or mortgage provider will be able to work out your monthly repayments to make sure you can afford them. Again this will form part of your affordability criteria.
These will be part of the checks done by the mortgage broker such as John Charcol.
Summary: Shared Ownership Mortgage Affordability Calculator
Shared ownership mortgages are a crucial component of the shared ownership scheme, providing an opportunity for individuals to step onto the property ladder without shouldering the full burden of property ownership. To make informed decisions regarding shared ownership mortgages, it’s imperative to use a mortgage affordability calculator. These tools empower potential homeowners to gauge their financial readiness and understand what monthly mortgage payments may entail.
A shared ownership mortgage calculator is a user-friendly tool that takes into account factors like your deposit amount, interest rates, and loan terms. By inputting this information, you can quickly assess whether shared ownership is a viable path for you. Such calculators provide insights into the percentage of a property share you can realistically afford and monthly mortgage payment, helping you fine-tune your homeownership goals.
A mortgage affordability calculator is not only useful for estimating the financial feasibility of a shared ownership mortgage, but also for ensuring responsible financial planning. They consider your income, expenses, and potential interest rate fluctuations, assisting you in making well-informed decisions. Moreover, these calculators are indispensable for understanding how a shared ownership mortgage impacts your monthly budget in conjunction with rent payments to the housing provider, service charges, and leasehold costs.
Utilizing a shared ownership mortgage calculator and seeking guidance from independent mortgage brokers like John Charcoal can provide you with a comprehensive overview of your financial standing within the shared ownership scheme. It’s essential to remember that shared ownership is not just about buying a share of a property; it’s about ensuring long-term affordability and financial stability. So, whether you’re considering shared ownership or exploring the potential to increase your ownership stake through ‘staircasing,’ these mortgage affordability calculators are your trusty companions in making informed decisions and securing your share of the property market.
Legal
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY DEBT SECURED ON IT.
John Charcol is a trading name of John Charcol Limited and its Appointed Representatives. John Charcol Limited is authorised and regulated by the Financial Conduct Authority. The Financial Services Register number is 665649. Registered in England No. 9157892. Registered office address for John Charcol Limited is St. Helen’s, 1 Undershaft, London, EC3P 3DQ. The FCA does not regulate some investment mortgage contracts. Calls may be recorded for training and monitoring.
*Heads up, when you click through to our affiliate links, we may earn a small commission at no extra cost to you. We only recommend sites we truly trust and believe in.
