Get Your Best Mortgage Deal, Completely Fee-Free!

Complete Guide to Shared Ownership Remortgage

WE WORK WITH 90+ MORTGAGE LENDERS
In this guide:
    Add a header to begin generating the table of contents

    As a shared ownership homeowner, exploring remortgage options can help you increase your property stake or secure a more favourable mortgage deal. This guide will help you navigate the complexities of shared ownership remortgages.

    Understanding Shared Ownership Remortgage: How It Works

    Before starting your shared ownership remortgage process, it’s crucial to grasp the basics and benefits of remortgaging your part-owned property. In the case of a shared ownership property, remortgaging involves replacing the current mortgage with a new one. The property initially purchased through a government mortgage scheme like the help to buy shared ownership scheme, is owned partially by you and partially by a housing association.

    The shared ownership remortgage process enables you to increase your shares, potentially owning the property outright through strategic staircasing. Potentially, you can increase it up to 100%, until you own the property outright. This process is known as shared ownership staircasing.

    Shared Ownership Staircasing

    Shared ownership staircasing is the practice of gradually increasing your property holdings over time, like climbing a staircase step by step; or in this instance, by purchasing multiple shares at once.

    Staircasing may be repeated up to three times. However, the terms and conditions with your housing provider must be checked first as housing associations tend to have different criteria.

    There are two key ways you can increase your shares:

    1. Further Advance: Your existing lender may agree to offer you a further advance to increase your shares in the property. To do this, lenders will typically carry out a property valuation to establish if there’s enough equity. Lenders may also carry out a revised affordability test and will request your most recent proof of income.
    2. Shared Ownership Remortgage: By switching to a new mortgage lender, you may be able to apply for a larger loan. This means that you can repay your current lender and have surplus funds to purchase additional shares. Valuations and income assessments will also be carried out.

    Staircasing and Remortgage: Existing Lender vs. New Lender Options

    When you’re ready to remortgage your shared ownership mortgage, one of the first decisions you’ll face is whether to stick with your existing lender or explore options with a new lender. This choice can significantly affect both the terms of your remortgage and your ability to increase your share in the property through staircasing. Here’s what you need to consider:

    Existing Lender Benefits:

    • Simplified Process: Staying with your current lender may offer a more streamlined process since they already have your financial information and history.
    • Potential for Better Rates: If you’ve been a reliable borrower, your existing lender might offer competitive rates or terms to keep your business.
    • Lower Fees: Some lenders offer reduced fees or incentives for loyal customers looking to remortgage.

    New Lender Advantages:

    • Competitive Offers: Shopping around can uncover deals that better suit your current financial situation or offer lower interest rates.
    • More Flexible Staircasing Options: Different lenders may have more accommodating policies regarding staircasing, allowing you to increase your share in the property more rapidly or under better terms.
    • Access to Specialised Products: Some lenders specialise in shared ownership mortgages and may offer products specifically designed for your needs.

    Read: Remortgage Same Lender: A Comprehensive Decision-Making Guide

    Mortgage Advisor - Megan

    Sarah's Shared Ownership: Staircasing Journey to Full Ownership

    Megan (YesCanDo Mortgage & Protection Advisor)

    Understanding Shared Ownership Mortgages

    Shared ownership mortgages are designed for individuals who can’t afford to purchase a home outright on the open market. These mortgages allow you to buy a percentage share of a leasehold property, making the property ladder more accessible.

    The property is owned partially by you and partially by a housing association. The percentage you own can be between 10% and 75%, and then you pay rent to a housing association or local council on the part you don’t own.

    Remortgage Shared Ownership: Informing Your Housing Association

    Depending on the housing association or local council scheme, shared ownership can have varying terms and conditions. Ensure you inform your housing association that you intend to remortgage because they need to agree and can make a small administration charge. They must approve the new mortgage and ensure it meets their requirements.

    Calculating the Value of Shares

    As soon as you inform your housing provider of your plans to remortgage, they’ll usually request a property valuation in order to ascertain whether there is equity in your home and provide an accurate picture of its market value and share price. This valuation will give an indication of equity levels as well as the price of the share that you wish to purchase.

    Example: if your property is valued at £150,000 and you want to buy an additional 25% share, its purchase price would be £150,000 multiplied by 25% = £37,500. Make sure the valuation is completed by an accredited surveyor such as an RICS member for accuracy.

    Start Your Shared Ownership Remortgage Journey Today
    Don't let the complexities of shared ownership remortgages hold you back. Our team of mortgage experts are here to guide you every step of the way. Contact us today for a free consultation!

    remortgage shared ownership

    Reasons to Remortgage a Shared Ownership Property

    There are several reasons why you might consider remortgaging a shared ownership property:

    1. Increase Shares: The main reason to remortgage your shared ownership mortgage is to increase the number of shares you own. Increasing shares in a property enable you to gain from any increases in the value of your home. As equity starts to build up, remortgaging becomes easier and a lot more viable.
    2. Reduce Rent: Increasing shares will also reduce any rent you are paying. If you ever decide to sell your property, the more shares you own will enable you to cash in, especially if the property has increased in value quite considerably! If you do staircase your way to owning 100% of the property outright, you won’t have to pay any rent at all.
    3. Better Deal: You may also want a shared ownership remortgage to improve on your current mortgage deal. Your current mortgage rate might be higher than you’d like or the initial discounted period is almost over; by refinancing, remortgage could help secure you with lower interest rates and more flexible terms.
    4. Change of Circumstances: If your financial circumstances have improved since taking out a shared ownership mortgage, refinancing could help increase your share more quickly.
    5. Market Conditions: Remortgaging can be an ideal financial strategy when interest rates have decreased or your property value has seen significant appreciation, either of which can make refinancing an appealing option.

    As with any investment decision, it’s wise to seek advice from an experienced mortgage broker who has access to mortgage lenders who offer shared ownership mortgages to decide which is the right option for you.

    Expert Mortgage Broker Advice for Your Shared Ownership Remortgage Journey

    An independent mortgage broker can be invaluable when considering a shared ownership remortgage. They will offer tailored advice tailored to your unique circumstances, explain all available options to you, and guide through the application process with you.

    Choosing a Mortgage Lender with Expert Broker Assistance

    Mortgage brokers offer access to over 14,000 mortgage products from 90+ mortgage lenders, some of which you might not otherwise be aware of or have access to on your own. In addition, they can negotiate more favourable terms and rates for you on your behalf. Whether you’re working with Share to Buy’s mortgage broker partner or another broker, their expertise and guidance can be invaluable in navigating the remortgage process.

    Ready for Personalised Mortgage Advice?
    Reach out for 100% FREE expert mortgage advice. Our team is here to guide you to the mortgage that's just right for your financial needs. Contact us today!

    Shared Ownership Staircasing or a Simple Remortgage?

    Whether you should opt for shared ownership staircasing or a simple remortgage depends on your individual circumstances and goals. If your aim is to increase your shares in the property then staircasing could be your solution to increasing your stake in property ownership and eventually owning it entirely.

    However, if you want a better deal on your loan, remortgaging might be best. Seek advice from an expert mortgage broker so that you can decide which option will work for you best.

    Fees for a Shared Ownership Remortgage

    As with every mortgage, there will be associated costs. Remortgages for shared ownership generally have slightly higher costs involved. This is because most lenders don’t offer mortgages involving shared ownership. As the market isn’t considered mainstream, it is less competitive.

    Possible fees involved for shared ownership remortgages:

    • Lender arrangement fees (existing or new lenders)
    • Valuation fees
    • Admin fees (broker and/or lender)
    • Legal fees (conveyancing)
    • Stamp duty (based on the value of the property/shares or you can pay in stages – if paying in stages, payments commence once shares exceed 80%)

    FAQ: Understanding Shared Ownership Remortgage

    Yes, you can remortgage your shared ownership mortgage. This process enables you to increase your shares in the property, potentially up to 100%, until you own the property outright, a process known as shared ownership staircasing. It's important to note that not all lenders offer shared ownership remortgages, making it advisable to consult with a specialist mortgage broker for guidance.

    Indeed, staircasing allows you to gain equity with a shared ownership mortgage by increasing your share. While this process boosts your equity, be mindful of additional costs such as valuation fees and legal expenses. Consulting a mortgage advisor is recommended to fully understand the implications before proceeding.

    Equity in a shared ownership scheme refers to the percentage of the property you own. As you pay off your mortgage debt or buy additional shares (staircasing), your equity increases. If the property's value rises, so does your equity; conversely, if values decrease, your equity will follow suit. Therefore, it's crucial to consider market fluctuations and how they might affect your equity.

    Borrowing with a shared ownership mortgage involves complexities due to its shared nature. Options like further advances for staircasing might be available, depending on your lender's policies. A broker with expertise in shared ownership can provide tailored advice for your borrowing needs.

    Securing a mortgage for a shared ownership property can come with unique challenges, primarily due to the partial ownership aspect. Nonetheless, many lenders offer specialised mortgages for shared ownership schemes. Assistance from a specialist mortgage broker can simplify finding a compatible lender.

    Interest rates on shared ownership mortgages may be slightly higher compared to standard mortgages, reflecting the increased risk perceived by lenders. However, competitive rates can be found through diligent research and negotiation by a broker.

    Increasing shared ownership mortgage, particularly for staircasing, is possible. Lenders will evaluate your financial status and property valuation before offering additional funds.

    Yes, remortgaging a joint shared ownership mortgage is feasible, provided all co-owners consent to the new mortgage terms. This process requires careful consideration of each owner's financial obligations and equity shares.

    Purchasing a second home while partaking in a shared ownership scheme is possible, but subject to lender-specific requirements, including affordability checks. Guidance from a mortgage advisor can help navigate the requirements for owning a second property alongside your shared ownership home.

    Start Your Shared Ownership Remortgage Journey Today
    Don't let the complexities of shared ownership remortgages hold you back. Our team of mortgage experts are here to guide you every step of the way. Contact us today for a free consultation!

    Conclusion

    Start your journey to full property ownership with a shared ownership remortgage. Expert brokers are here to navigate you through securing the best deals and making informed decisions. Seek advice from an expert mortgage broker who can guide you through this process and find you the best available deal. A broker will search the whole market to see if the best interest rate or deal is with the same lender or a new mortgage provider.

    Remember, shared ownership’s purpose is to help you take steps toward homeownership. With proper planning and advice from experienced advisors, this opportunity could become your chance to eventually own it all outright.

    Shared ownership remortgages provide a flexible and accessible option for anyone beginning or expanding their property journey. Take the first or next step today on your journey!

    Related Reading:

    Share this post:
    Facebook
    Twitter
    Email
    WhatsApp
    Jane Rowe (CII)
    Jane Rowe (CII)

    Jane (CII) is an outstanding Mortgage & Protection Adviser at YesCanDo Money. Boasting decades of industry expertise and an overwhelming passion for client care, she excels at guiding her clients whether they're making their first steps onto the property ladder, moving homes or exploring buy-to-let opportunities. Jane stands out as a true professional by finding the best solutions and prioritising client financial security first and foremost.

    Contact Us

    Other Remortgage Guides

    Mortgage Porting: Your Guide to Porting a Mortgage

    Moving home is often a mix of excitement and stress, especially when dealing with mortgages. But what if you could bring your current mortgage terms ...
    Read More →

    The Ultimate Buy To Let Remortgage Guide

    Remortgaging a buy-to-let property can be both exciting and daunting for landlords, depending on a variety of factors. While finding the optimal deal may be ...
    Read More →

    How long does a NatWest Remortgage take?

    Timing your home remortgage precisely is really important. If you wait too late you could fall onto the standard variable rate which could cost you ...
    Read More →

    Unencumbered Mortgage Explained

    If you are living in an unencumbered property, by which we mean a mortgage free property that you own outright, you might be interested in ...
    Read More →

    How long does a HSBC Remortgage take?

    There are many banks and building societies that you could turn to for your remortgage. One of these is the HSBC. The time for an HSBC ...
    Read More →

    Complete Guide to Shared Ownership Remortgage

    As a shared ownership homeowner, exploring remortgage options can help you increase your property stake or secure a more favourable mortgage deal. This guide will ...
    Read More →

    How long does a remortgage take?

    Ever wondered, ‘How long does it take to remortgage?’ You’re not alone. This guide demystifies the remortgage process, offering a clear timeline and essential tips ...
    Read More →

    Why Remortgage: A Helpful Guide

    Are you coming to the end of your fixed-rate mortgage deal and wondering what will happen if you don’t remortgage? In this helpful guide, we’ll ...
    Read More →

    Secured Loans in the UK: A Comprehensive Guide

    Before you decide whether a secured loan is right for you, it’s essential to gain insight into the various types of loans and how they ...
    Read More →

    How to Remortgage to Pay Off Help to Buy

    The Help to Buy equity loan scheme has been a lifeline for many first-time homeowners, but what happens when it’s time to repay? One popular ...
    Read More →

    Help To Buy Remortgage: The Ultimate Guide

    The Help to Buy scheme has been a lifeline for many first-time buyers and those struggling to get on the property ladder. But what happens ...
    Read More →

    Remortgage Same Lender: A Comprehensive Decision-Making Guide

    If your current mortgage deal is coming to an end, now is the time to remortgage and consider a switch to a new deal. This ...
    Read More →

    Do You Need a Solicitor to Remortgage?

    Due to the increasing cost of living, it is becoming more essential that homeowners remortgage their homes to the lowest interest rate and within the ...
    Read More →

    Comprehensive Guide to an Interest-Only Remortgage

    If your existing interest-only mortgage deal is approaching its end, it’s crucial to explore remortgaging options before transitioning to your lender’s standard variable rate (SVR). ...
    Read More →

    How long does a TSB Remortgage take?

    Timing is everything when it comes to remortgaging. If you leave it too late, you will fall onto your TSB standard variable rate. If you ...
    Read More →

    Can you remortgage early?

    If you’re unhappy with your current mortgage deal, perhaps because you’ve spotted a lower interest rate elsewhere, you might consider remortgaging. By moving to a ...
    Read More →

    Understanding Remortgage Valuation: Is It Necessary for You?

    So it’s time to get your remortgage underway and you know that you are going to be asked how much is your property worth by ...
    Read More →

    Mortgage Early Repayment Charge Explained

    If you don’t want to be stuck with your current mortgage deal for the long term, you can remortgage to a new deal or pay ...
    Read More →

    When to Start the Remortgage Process

    Once you know what a remortgage is the next stage is deciding when to start the remortgage process, this can be a daunting task. This ...
    Read More →

    Getting a Further Advance Mortgage

    Are you considering borrowing additional borrowing on top of your existing mortgage? A further advance mortgage might be the solution you’re looking for. In this ...
    Read More →

    How to Repay Your Help to Buy Equity Loan

    Are you a first-time homeowner in the UK who took advantage of the Help to Buy scheme? If that is the case, and you wish ...
    Read More →

    Remortgage for Home Improvements: Unlock Your Home’s Potential

    Thinking of raising funds with a remortgage for home improvements? Transform your home with help from this comprehensive guide to remortgaging for home renovations and ...
    Read More →

    How soon can you remortgage before your fixed rate ends?

    Are you nearing the end of your mortgage’s fixed-rate period and wondering if it’s time to remortgage? The answer to how soon you should start ...
    Read More →

    Remortgage to Buy Another Property: A Full Guide

    Are you wondering, “Can I remortgage to buy another property?” People remortgage for several different reasons. Some do it to acquire a lower mortgage rate ...
    Read More →

    Switch Your Mortgage: Mortgage Product Transfer

    Mortgage product transfers are an essential aspect of managing your mortgage effectively. This guide aims to provide a comprehensive understanding of what a product transfer ...
    Read More →

    What is Remortgage and How Does It Work?

    Being experienced remortgaging brokers, our team of advisors know that remortgaging can provide homeowners with valuable opportunities to save money, consolidate debt, and release equity ...
    Read More →

    Remortgage for Extension: Full Guide

    Completing a remortgage for home improvements is very common. People raise funds for an extension as you can add value to your home, avoid the ...
    Read More →

    Loan or Remortgage: What should I get?

    You may be looking into remortgaging or getting a personal loan if you are intending to borrow money to fund home improvements such as an ...
    Read More →

    The Ultimate Self-Employed Remortgage Guide

    Navigating the complex world of remortgaging can be daunting for self-employed individuals, so this guide aims to demystify this process and equip you with all ...
    Read More →

    Discover the true cost of extending your mortgage term

    As mortgage rates have increased from mid-2022 into early 2023, homeowners are seeking ways to lower their monthly payments. One option that has become more ...
    Read More →
    Scroll to Top
    This website uses cookies to improve your experience. If you continue we’ll assume you’re happy. See our privacy policy for more information.