Shared ownership and equity deals 'popular'

19-Jan-2009

More Britons are opting for shared ownership and shared equity schemes as they look to secure mortgage finance in the current economic climate, says Click n Go Mortgages.

Hayley Martin, team leader at the mortgage advisory firm, said the firm are doing a lot of deals of this kind, as low mortgage rates are reducing the number of 'ordinary' purchases.

Falling mortgage rates can be useful for first-time buyers (FTBs) considering shared ownership schemes, even though the providers seek ten per cent of the loan, Ms Martin argued.

"For a £40,000 mortgage it's only £4,000 that they've got to find, which is not unachievable," she said.

Her comments come as the government's Open Market HomeBuy schemes offers FTBs earning less than £60,000 a year the chance to purchase their first property through an equity loan.

Meanwhile, amid the impact of the credit crisis on mortgage availability for FTBs, some 33,000 home loans were approved in November 2008 according to Council of Mortgage Lenders statistics - 17 per cent down on the previous month's total.

FirstRungNow.com - how to buy a house, from finding your first flat or first house, first time buyer mortgages, shared ownership, buying with friends, gifted deposit, part buy part rent - all a first time buyer could possibly need.

Property market tipped for major recoveryGovt 'making a stand' for FTBsHouse price reduction predicted

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