Shared Equity Explained
- You own your home but only have to pay 75% of the home's value on date of purchase
- You can expect your monthly outgoings to be circa 25% less vis-à-vis mortgage re-payments, for example, a monthly mortgage re-payment of £1200 could fall to as little as £900 per month if the shared equity model is utilized.
- It allows access to a potentially better quality of home than you might otherwise be able to afford at this particular time, but you have time to save and work towards paying for the home in full (i.e. 10 years).
- There is very little possibility of a mortgage deposit being required as a result of most lenders' willingness to provide 100% lending on the 75% of the purchase price. This means that you can avoid the payment of a sizeable deposit; typically a prerequisite to a new home purchase.