In partnership with the Financial Services National College (FSNC).
The New Year celebrations brought with it a flurry of brand new resolutions to kick start 2019.
One such goal you may have made is to purchase your first home; however, financial pressure could be putting you off taking the first step.
Our Direct Sales Manager, Luke Pummell, believes this doesn’t have to be the case.
What is Shared Ownership?
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 do you consider to be the best benefit of the Help to Buy schemes?
“The affordable housing schemes are a great way to get onto the housing ladder as you only need a deposit from as little as 5% of the overall property value (Equity Loan Scheme) or of the share that you purchase (from 25% through Shared Ownership). This means you can get on the housing ladder without the need for a large deposit, reducing the pressure to fork out an unrealistic lump sum.”
What does ‘Shared Ownership’ actually mean?
“Don’t worry! 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 financials fit, purchase a further 5%, and so on. This means the rent you pay to 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 to that of standard residential mortgages?
“In short, no. For example, once the housing association assesses your eligibility for Shared Ownership you can proceed with arranging a mortgage with us and proceed with the standard legal process.”
Which regions does Newbury Building Society accept applications from?
“We may have branches in Berkshire, Hampshire and Oxfordshire, but we are proud to be one of the few lenders who provide products up to 95% on Shared Ownership and lend 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 CeMAP (Certificate in Mortgage Advice and Practice) qualified, and committed to speaking to you in a clear and concise way to strip away complex jargon.”
How does Newbury Building Society judge first-time buyer mortgage applications?
“We are committed to helping first-time buyers take their first step onto the property ladder and there are many reasons to choose us.
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 first-time buyers, thus, 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 only a few 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.”
For further reading on the Shared Ownership scheme visit the Own Your Home government website.
How can prospective borrowers contact the Society?
"Our mortgage advisers are available from Mondays to Saturdays and we offer a free, no obligation meeting to discuss your needs. Alternatively, we can arrange a telephone appointment to suit you. You don’t even have to leave the comfort of your sofa!"
You can contact us in one of three different ways:
- Email email@example.com and we will contact you directly
- Submit an online contact us form on our website
- Visit one of our ten branches: Abingdon, Alton, Andover, Basingstoke, Didcot, Hungerford, Newbury, Thatcham, Winchester and Wokingham to arrange an appointment
You can find the full list of our affordable housing mortgage products here.
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.