Why choose the Marsden for Shared Ownership?
Our Shared Ownership mortgages are designed for those looking to use the Government-backed Shared Ownership scheme, supporting those taking their first step (or return step) onto the property ladder using ‘part buy – part rent’ home ownership. But why choose the Marsden for your Shared Ownership cases?
What is Shared Ownership?
Shared Ownership is a Government-backed scheme which gives buyers the option to purchase a share of a home (between 25% (10% for model leases 2021-2026) and 75%) from a housing association, paying rent on the remaining share they don’t have ownership of. Also referred to as ‘part buy – part rent’, the scheme could be suitable for those who want to buy a home but can’t make up the full deposit. Shared Ownership mortgages could be a more affordable option as applicants can purchase a property with as little as 5% deposit of the share being purchased.
How does Shared Ownership work?
As an example, if your client was looking to purchase a £200,000 property at 95% LTV, they would require a deposit of £10,000. Under the Shared Ownership scheme, if your client was purchasing a 50% share, they would only require a deposit of £5,000. With Shared Ownership, clients can buy more shares of their home once they become the owner. This is called ‘staircasing’ and we’ll support your clients where they are eligible to staircase up to 100%.
Why choose the Marsden?
- We’ll lend up to 95% LTV – minimum share 25%, maximum share 75%.
- New build houses are accepted up to 95% LTV (subject to satisfactory warranties).
- Our offers are valid for 6 months with the option to extend if needed with no re-offer fee.
- Our products are available for purchase, however, your client doesn’t have to be a first-time buyer as long as this will be their main residence.
- Our new affordability calculator is tailored for Shared Ownership cases.
- Gifted deposits are considered up to 95% LTV.
- We have no regional restrictions; we lend in all of England and Wales.