We can help to demystify your shared ownership mortgage

Is your 2023 goal to purchase your first home? If so, current economic uncertainty, the rising cost of living, and increased financial pressures could be putting you off taking the first step.

Our Direct Sales Manager, Luke Pummell, believes this doesn’t have to be the case. 

Knowledgeable in all things affordable, below, Luke highlights how Newbury Building Society can help you achieve your home ownership dream and why popping in for a chat could be the best decision you make this year. 

What does ‘Shared Ownership’ actually mean?

Shared Ownership doesn’t mean a ‘shared property’ in the sense you have to live with another person. You live in the whole house and you have a mortgage on the share that you ‘buy’ and pay rent on the remaining amount, usually to the council or a housing association. This could be a lifeline for those already paying rent, as the rent you pay alongside the mortgage is subsidised. This means it generally works out less per month than renting privately and definitely less than buying the full 100% of your home. 

If you’re lucky enough to be able to pay rent and save, a Shared Ownership property will actually allow you to carry on in the way you’ve grown accustomed to. The only difference is that your money will be invested in a property, rather than simply paying to keep a roof over your head.

Can buyers increase their ownership with Newbury Building Society?

The benefit of Shared Ownership is that you can buy a percentage share of the overall value of the house and you can buy more of the property when you can afford it – this is called staircasing. For example, you can start with 25% then, if finances work, purchase a further 5%, and so on. This means the rent you pay to the housing association will reduce. We can help you with this step - all you need to do is contact us and we can take it from there.

Is the mortgage application process different from that of standard residential mortgages?

In short, no. Once the housing association assesses your eligibility for Shared Ownership, you can proceed with arranging a mortgage with us in the standard way.

Which regions does Newbury Building Society accept applications from?

We may have branches in Berkshire, Hampshire, and Oxfordshire, but we're proud to be one of the few lenders who provide Shared Ownership mortgages up to 95%, lending throughout England and Wales. Our affordable housing-specific mortgages are not postcode-restricted.

First-time buyers can be nervous about the buying process – how does Newbury Building Society help their customers?

We have been helping local people step onto the housing ladder for over 160 years and we are known as a ‘lending veteran’ with over fifteen years of experience in affordable housing mortgage lending.

We guarantee you will always be able to speak to a person, not a computer. We understand buying a property and obtaining a mortgage can be an exciting, and sometimes daunting, experience - especially if you’re a first-time buyer or new to the property market. That’s why all our mortgage advisers are committed to speaking to you in a clear and concise way to strip away complex jargon.

The first step (and most important) is to simply talk to us. When you decide to purchase a property through one of the government’s affordable housing schemes, you will want to know what your mortgage options are. We try to simplify the whole process from your initial enquiry all the way through until you move into your new home by providing you with specialist face-to-face advice in a way you can understand.

Are Newbury Building Society’s Shared Ownership mortgages just for first-time buyers?

The government’s affordable housing schemes are not just for first-time buyers, and neither are our mortgages! We regularly help divorcees starting afresh, those whose employment situation has changed, and those looking to relocate to an area with much higher housing prices, to name just a handful of different circumstances. 

We believe everyone has the right to own their home and as a mutual organisation owned by its members, we will continue on making what might seem impossible, possible.

Want to speak to us about a Shared Ownership mortgage?

Visit us in one of our ten branches, or book an appointment online. Appointments are available in person, over the phone, or via video call.

YOUR MORTGAGE IS SECURED ON YOUR HOME. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.