INTRODUCTION
Make Homeownership Accessible with Shared Ownership
Shared ownership is an affordable, government-backed solution to make homeownership more accessible. It allows you to purchase a share of a property—usually between 25% and 75%—while paying rent on the remaining portion, typically owned by a housing association. This scheme also offers a pathway to owning a home with lower upfront costs and long-term stability.
This option has become increasingly popular in the UK, particularly among first-time buyers and those with limited budgets, as it significantly reduces the financial entry barrier to property ownership. Over time, you can buy additional shares in the property, a process called “staircasing,” which enables you to work toward full ownership at your own pace.
At Credas Financial Services, we specialize in guiding clients through the shared ownership process. We help you understand your options, find suitable lenders, and ensure that your journey toward homeownership is as smooth as possible. With Credas Financial Services, you’re gaining a mortgage advisor and a dedicated partner in your homeownership journey. Start your path toward owning your home, and let us guide you through each step with confidence.
How Shared Ownership Works
Shared ownership is structured to give buyers a manageable route into homeownership while offering flexibility for long-term growth. Here’s an expanded look at how it operates:
Initial Purchase of Share
You begin by purchasing a portion of the property, typically between 25% and 75%, with a mortgage or other financing options. The remaining share is owned by a housing association or government entity, keeping your initial costs more manageable than buying a property outright. This initial purchase structure means you only need to provide a deposit based on the share you’re buying, significantly reducing the upfront cost and allowing for more accessible entry points.
Monthly Rent on Unowned Share
You pay rent on the remaining share at a discounted rate, which is generally lower than full-market rental rates. This setup enables lower monthly outgoings compared to full ownership and offers more affordable options for individuals who are financially unable to commit to a full mortgage. The balance between rent and mortgage payments allows you to maintain financial stability while building home equity.
Staircasing Options
As you gain financial security, you can increase your ownership through a process called “staircasing.” This involves buying additional shares (usually in increments of 10%) until you potentially own the property outright. Each time you buy more shares, your rent decreases in proportion to the share you now own, allowing your investment to grow gradually over time. By staircasing, you’re working towards full ownership in a way that aligns with your financial situation and future goals.
Benefits of Shared Ownership
Shared ownership brings multiple advantages tailored to make homeownership achievable and flexible, particularly in today’s fluctuating housing market!
Lower Initial Costs: Unlike traditional buying methods, you’re only required to pay a deposit on the share you’re purchasing, not the full property value. This significantly lowers the deposit amount, making it an accessible choice for first-time buyers or those with limited savings. Additionally, lenders often view shared ownership favorably, as the partial ownership structure minimizes risk.
Greater Affordability and Reduced Monthly Outgoings: Because your mortgage is based on the share you own and your rent on the remaining share is often subsidized, shared ownership offers a more affordable alternative. With both mortgage and rent combined, your monthly outgoings are often lower than if you were to take out a full mortgage on the property. This affordability factor provides breathing room in your finances, allowing you to allocate funds toward savings or other personal expenses.
Long-term Flexibility: Shared ownership lets you progress towards full homeownership at your own pace. When you’re financially ready, staircasing allows you to increase your ownership incrementally. Unlike traditional renting, where your investment doesn’t build equity, shared ownership gives you a flexible way to grow your property stake over time.
WE ARE THE EXPERTS
Your Path to Full Ownership with Credas Financial Services
The process of navigating shared ownership can be complex, but at Credas Financial Services, we aim to make it as seamless as possible. Our team assists with every stage, from determining eligibility to finding competitive mortgage deals tailored to your unique financial situation. When you're ready to staircase, we’re here to secure the best terms for additional shares, empowering you to work towards full ownership efficiently.
Start with a Friendly Consultation
We take the time to understand your financial situation, future plans, and homeownership goals. This initial conversation helps us determine which mortgage options best align with your needs. Whether you’re looking for long-term stability, lower initial costs, or flexibility in payments, we provide tailored advice based on the latest market trends.
Get Pre-Approved
Pre-approval is a critical step in the mortgage process, providing you with a clear understanding of your borrowing capacity. With recent developments in the mortgage market, lenders have become more diligent in assessing affordability, especially considering rising living costs and interest rates. We help you navigate these assessments, ensuring you’re pre-approved for a mortgage that suits your budget and offers competitive rates. Having pre-approval also gives you confidence when negotiating with sellers, as it shows you’re a serious buyer with financing in place.
Choose the Right Mortgage for You
With access to a wide panel of lenders, we compare options to find the most competitive mortgage rates and terms. In light of recent market developments, lenders have introduced more flexible products to accommodate changing buyer needs, including low-deposit mortgages and deals tailored to buyers with unique circumstances. We evaluate your options, helping you choose the best mortgage, whether you’re looking for the lowest interest rate, the most favorable repayment terms, or additional perks such as cashback offers.
Navigate the Paperwork
The mortgage application process involves complex documentation, including income verification, affordability assessments, and legal paperwork. With new regulatory guidelines in place to protect borrowers, lenders require more detailed documentation, particularly for self-employed applicants or those with fluctuating incomes. We guide you through every step of the process, helping you gather the required documents and ensuring everything is completed accurately and on time.
Final Approval and Moving Day
Once your mortgage is approved, we assist with the final stages of the process, ensuring that all financial and legal requirements are met before completion. Recent market shifts have resulted in stricter timelines for mortgage offers, especially for new builds and shared ownership schemes, making it essential to stay on top of deadlines. We liaise with lenders and solicitors to ensure a smooth transition to completion, allowing you to focus on the excitement of moving into your new home.
OUR SKILLS
How We Can Help You?
We offer expert guidance tailored to your needs, whether you're buying your first home, remortgaging, or expanding your property portfolio. Our team simplifies complex processes, helps you find the best deals, and ensures smooth communication with lenders—making your journey stress-free from start to finish.
Mortgage Advisory Service
90%
Mortgage Strategy Planning
95%
Mortgage Management
85%
Financial Analysis
92%
Expert Guidance
We track market trends, government initiatives, and lender offers to help you make well-informed financial decisions.
Personalized Solutions
We provide customized mortgage advice based on your financial situation, offering solutions aligned with your specific goals.
End-to-End Support
We assist you throughout the process, from consultation to securing approval, ensuring a stress-free experience.
CALL TO ACTION
Secure Your Financial
Future Today !
Expert financial advice tailored to your unique needs. Let us guide you towards financial success.