Looking to purchase a shared ownership house? Are you looking for a shared ownership which suits your needs? Cheap shared ownership mortgage rates allow a borrower certain benefits; low interest rates and easy repayment options.

A shared ownership mortgage can help you enter into the local government and housing association run shared ownership scheme and help you to own your first property. The housing scheme allows you to partly own a property, whilst paying rent for the other percentage of the property which is owned by a separate party, usually your local council. In time, as your income increases, you can buy into the rented part of the property and increase you owned percentage. This is known as ‘stair-casing’.

Shared ownership mortgage schemes are popular with first time buyers because they only need to find a small amount of the deposit. As house prices have risen, a much larger cross section of the general public are looking at shared ownership as a means of getting on the property ladder. Some lenders will now offer 100% mortgages on shared ownership schemes. They work on a percentage basis, allowing you to enter into a shared ownership mortgage of anywhere between 25 – 100%.

To get a shared ownership mortgage you will need to select a mortgage that is not only suitable to your types of purchase, but also one that fits in with your financial position. Variable rate mortgages offer interest rates that will vary according to the base rate set by the Bank of England. Before entering into a variable rate mortgage you will need to consider whether rates are likely to change in the future. Fixed rate mortgages offer an interest rate that will remain static for the specific period of time. Some fixed rate mortgages revert to the standard variable rate at the end of the fixed term.

The mortgages available on shared ownership are somewhat limited as some lenders feel that shared ownership is more risky than more traditional loans. To go about finding a shared ownership mortgage, it is best to use an independent mortgage broker because they will look at the whole shared ownership mortgage market, not just the high street, for the most suitable shared ownership mortgage loan. This saves a great deal of time trying to do this on your own and it will be much more accurate. Some mortgage schemes are available only through mortgage brokers and not to the public directly. A mortgage broker will also advise you on the cheapest types of rates available.

Most of the schemes on offer are government-sponsored and available only to key workers and others in priority need. However, now there is at least one private scheme available, whereby a first time buyer is paired up with an investor under a shared equity scheme. Unlike the government schemes that only deal with new or refurbished properties, this one can be used for any type of property in the area. If you are thinking of buying a property with a friend, family or co-investor, this is known as joint ownership.