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Shared Ownership

Richard Willsher

Art & Photography Teacher
​Dorset
​Mortgage ​customer since 201​2

Shared Ownership

Like the Help to Buy equity loan, Shared Ownership is another affordable home ownership scheme designed to assist aspiring buyers who are struggling to afford a mortgage. This scheme offers buyers the option to buy between a quarter to three-quarters of a property and pay rent on the remaining share.

How does it work?

Shared ownership schemes (part buy/part rent) are provided through housing associations. You buy a share of your home (between 25% and 75% of the home’s value) and pay rent on the remaining share. You can buy bigger shares at a later stage when you can afford to.

With shared ownership you can buy a newly built home or an existing one through resale programmes from housing associations.

Am I eligible?

Shared ownership properties are always leasehold and you can buy a home this way if:

  • Your household earns £80,000 a year or less (in London this is ​£90,000​)
  • You’re a first-time buyer (or you used to own a home, but can’t afford to buy one now)

Please note that for Shared Ownership, Teachers Building Society can ​consider applications on the basis of: 

  • Permanent employed income only
  • No other properties owned by applicant(s)
  • Mortgage must be repaid by retirement
  • If remortgaging, applicant(s) can only raise additional borrowing for staircasing (buying an additional share of the property)

How do I proceed?

If you are in the UK you need to contact your local Help to Buy Agent for more information about eligible properties. Your mortgage application will be subject to credit referencing, underwriting and a property valuation. Visit: www.helptobuy.org.uk for more information and to find your local agent.

Shared Ownership Mortgages

Shared Ownership, 3 Year Fixed Rate Mortgage 5% Deposit 4.59% Fixed
4.59% 4.99% 5.0% APRC 95% N/A £99

Key Features

Fixed rate

A fixed rate of 4.​59% for the first 3 years (fixed until 14/​10/2021). It then changes to our Standard Variable Rate, which is currently 4.99%, and remains on our variable rate terms for the rest of the mortgage.

The overall cost for comparison is 5.0% APRC.

What you Pay

  • Daily interest.
  • An application fee of £99 (non-refundable) is payable with the application.
  • The first valuation fee for properties worth more than £800,000.

Early repayment charge

An Early Repayment Charge of 3% on the amount repaid will be applied for the duration of the product term. You can overpay by up to 10% of the loan outstanding per calendar year without charge.

What we Pay

  • The first valuation fee for properties worth less than £800,000.
  • £100 cashback for NEU members upon completion.

Who can apply and more information

  • Available for home purchase and remortgage applications.

Your home may be repossessed if you do not keep up repayments on your mortgage

Representative Example

A mortgage of £150,000 over 28 years initially on a fixed rate of 4.59% (ending on 14th October 2021) and then our Standard Variable Rate of 4.99% for the remaining term, would require 38 monthly payments of £793.87 and 298 monthly payments of £823.90.

The total amount payable would be £276,034.69 made up of the loan amount plus interest (£125,708.19) with a funds transfer fee of £25, mortgage application fee of £99, legal fees of £117.50 and a mortgage exit fee of £85.

The overall cost for comparison is 5.0% APRC representative.

Call us today on 0800 378 669

This product may be withdrawn or amended at any time, without prior notice

Shared Ownership, 3 Year Variable Rate Mortgage 5% Deposit 3.99% Variable
3.99% 4.99% 4.9% APRC 95% N/A £99

Key Features

Variable rate

A variable rate, currently 3.​99%, which is discounted by 1.00% from our Standard Variable Rate for the first 3 years. It then changes to our Standard Variable Rate, which is currently 4.99%, and remains on our variable rate terms for the rest of the mortgage.

The overall cost for comparison is 4.9% APRC representative.

What you Pay

  • Daily interest.
  • An application fee of £99 (non-refundable) is payable with the application.
  • A valuation fee is payable. 
 

Early repayment charge

An Early Repayment Charge of 3% on the amount repaid will be applied for the duration of the product term. You can overpay by up to 10% of the loan outstanding per calendar year without charge.

What we Pay

  • £100 cashback for NEU members upon completion.

Who can apply and more information

  • Available for home purchase applications only.

Your home may be repossessed if you do not keep up repayments on your mortgage

Representative Example

A mortgage of £150,000 payable over 28 years initially on a discounted variable rate of 3.99% (equal to a 1.00% discount off our SVR) for 3 years and then our Standard Variable Rate, currently 4.99%, for the remaining term, would require 36 monthly payments of £741.97 and 300 monthly payments of £821.16.

The total amount payable would be £273,796.87 made up of the loan amount plus interest (£123,075.37) with a funds transfer fee of £25, mortgage application fee of £99, basic valuation fee of £395 legal fees of £117.50 and a mortgage exit fee of £85.

The overall cost for comparison is 4.9% APRC representative.
 

Call us today on 0800 378 669

This product may be withdrawn or amended at any time, without prior notice

Shared Ownership, 3 Year Variable Rate Remortgage 5% Deposit 3.99% Variable
3.99% 4.99% 4.9% APRC 95% N/A £99

Key Features

Variable rate

A variable rate, currently 3.​99%, which is discounted by 1.00% from our Standard Variable Rate or the first 3 years. It then changes to our Standard Variable Rate, which is currently 4.99%, and remains on our variable rate terms for the rest of the mortgage.

The overall cost for comparison is 4.9% APRC representative.

What you Pay

  • Daily interest.
  • An application fee of £99 (non-refundable) is payable with the application.
  • A valuation fee is payable for all properties worth £800,000 or more.

Early repayment charge

An Early Repayment Charge of 3% on the amount repaid will be applied for the duration of the product term. You can overpay by up to 10% of the loan outstanding per calendar year without charge.

What we Pay

  • We will pay £250 towards the legal costs and this will be sent directly to your solicitor on completion of the mortgage.
  • The first valuation fee for properties worth less than £800,000.
  • £100 cashback for NEU members upon completion.

Who can apply and more information

  • Available for remortgage ​applications only.

Your home may be repossessed if you do not keep up repayments on your mortgage

Representative Example

A mortgage of £150,000 payable over 28 years initially on a discounted variable rate of 3.99% (equal to a 1.00% discount off our SVR) for 3 years and then our Standard Variable Rate, currently 4.99%, for the remaining term, would require 36 monthly payments of £741.97 and 300 monthly payments of £821.16.

The total amount payable would be £273,796.87 made up of the loan amount plus interest (£123,075.37) with a funds transfer fee of £25, mortgage application fee of £99, basic valuation fee of £395 legal fees of £117.50 and a mortgage exit fee of £85.

The overall cost for comparison is 4.9% APRC representative.

Call us today on 0800 378 669

This product may be withdrawn or amended at any time, without prior notice

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YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE