Shared Ownership in Cardiff

You may only need a 5% deposit for a shared ownership mortgage in Cardiff, calculated against the share you’re purchasing rather than the property’s full value.

For example, if you’re purchasing a 50% share of a property worth £200,000, you’d need a £5,000 deposit for a mortgage requiring 5% upfront.

This could make buying a home more achievable if you’ve been struggling to save a deposit for a property outright.

The deposit you’ll need depends on the lender and your circumstances.

Some mortgage products require a larger contribution, particularly if you’ve experienced credit problems or have a less straightforward income.

We can look at how much you’ve saved, compare lenders offering shared ownership mortgages and establish what you could potentially purchase with your available deposit.

You may have more options than you initially expect, especially when your deposit is being calculated against a smaller share of the property.

Your shared ownership mortgage borrowing amount will depend on your income, existing commitments and how much you can afford to repay each month.

Mortgage lenders will assess your finances alongside the rent payable on the share you don’t own, which means your borrowing capacity could differ from a standard mortgage application.

Different lenders also have different affordability calculations.

One lender may offer a lower borrowing amount than another, even when assessing the same income and expenditure.

This is particularly relevant if you receive overtime, bonuses, commission or have income from self-employment.

Our mortgage advisors in Cardiff can compare affordability across suitable lenders to establish how much you may be able to borrow, rather than relying on a single lender’s calculation.

We can also help you obtain an Agreement in Principle, giving you a clearer indication of your borrowing position before you start applying for properties.

Several mortgage lenders offer shared ownership mortgages, although availability depends on the scheme, property and individual lending criteria.

Not every lender offering shared ownership mortgages in England will support Shared Ownership Wales, so it’s important to establish which lenders can consider your intended purchase.

Some lenders may offer more favourable affordability calculations, while others could be better suited to applicants with smaller deposits, variable income or previous credit problems.

The interest rate is also only one consideration.

Mortgage fees, deposit requirements and the amount a lender is prepared to offer can all influence which deal is suitable.

Rather than approaching individual banks to establish their requirements, we can compare shared ownership mortgage products from lenders available to us.

As a mortgage broker in Cardiff, we will assess your circumstances and the property you’re looking to purchase before recommending a suitable mortgage deal.

Getting a shared ownership mortgage with bad credit may still be possible, depending on the problems you’ve experienced and your current financial circumstances.

A missed payment from several years ago may have less influence on an application than recent defaults, County Court Judgements or ongoing financial difficulties.

Mortgage lenders assess credit history differently, meaning an unsuccessful application with one lender doesn’t necessarily mean every lender will reach the same decision.

Your deposit, income, existing commitments and ability to afford the combined mortgage and rental payments will also influence the outcome.

If you’ve experienced credit problems, our mortgage advisors can review your credit history before you apply and identify lenders whose criteria may be more suitable.

This can help you avoid approaching lenders whose requirements you’re unlikely to meet, particularly where previous credit issues need a more specialist approach.

You can get a shared ownership mortgage if you’re self-employed, provided you meet the scheme’s eligibility requirements and can demonstrate sufficient income.

The main consideration is how a mortgage lender calculates your earnings, as different lenders can reach different affordability figures using the same financial information.

Sole traders are generally assessed using their taxable profits, while limited company directors may have their salary and dividends considered.

Some lenders can also consider retained company profits.

Your trading history will matter too, particularly if you’ve recently started your business or your income has changed significantly between tax years.

Our mortgage advisors regularly work with self-employed applicants and can establish which lenders may be prepared to consider your income circumstances.

We can also explain which documents you’ll need and help you prepare your application before approaching a suitable lender for a shared ownership mortgage in Cardiff.

Joint shared ownership mortgages are available in Cardiff, allowing eligible applicants to purchase a property together using their combined income.

Both applicants must meet the relevant requirements, including the Shared Ownership Wales household income limit of £60,000 per year.

Applying jointly can improve your borrowing capacity if both applicants have an income, although existing debts, credit commitments and the rent payable on the remaining share will also affect affordability.

Mortgage lenders will assess each applicant’s circumstances, including their income, employment and credit history.

If one applicant has a lower income or previous credit problems, lender selection can become particularly important.

We can assess your combined affordability, establish which lenders may consider your application and help you understand the mortgage commitments involved in purchasing a shared ownership property together.

You may be able to remortgage your shared ownership property in Cardiff to secure a new mortgage deal, particularly when your existing fixed rate is approaching its end.

You don’t necessarily need to purchase additional shares to remortgage.

It’s possible to retain your existing ownership percentage while moving your mortgage to another lender, subject to the lender’s and housing provider’s requirements.

Shared ownership remortgages can be more restrictive because not every lender supports these arrangements.

Your current mortgage balance, property value, ownership share and affordability will all influence the deals available.

We can compare remortgage products against the option of staying with your existing lender through a product transfer.

If your mortgage deal is ending within the next six months, reviewing your options early could give you more time to secure a suitable deal before moving onto your lender’s standard variable rate.

You may be able to increase your mortgage to purchase additional shares in your shared ownership property, allowing you to increase the percentage you own.

This is known as staircasing, and Shared Ownership Wales can allow you to increase your ownership to 100%, depending on the terms of your agreement.

Additional shares are generally purchased at the property’s current market value, meaning the cost may have changed since your original purchase.

You could potentially fund the additional share through a further advance with your existing lender or by remortgaging to another lender that supports staircasing.

Our mortgage advisors can compare the available borrowing options and assess how increasing your mortgage could affect your monthly repayments.

Purchasing additional shares may reduce the rent payable to your housing provider, so it’s worth reviewing the combined cost of your mortgage and rent before deciding how much further ownership to purchase.

Mortgage lenders will assess your mortgage repayments, rental payments and any service charges when deciding how much you can afford to borrow.

They’ll also consider your income against existing commitments, including credit agreements, loans, childcare costs and regular household expenditure.

This can make shared ownership affordability more complicated than simply calculating the mortgage required for your chosen share.

For example, a smaller mortgage doesn’t automatically mean a lender will offer a higher borrowing amount if the rent and service charges take up a significant portion of your monthly income.

Different lenders can assess these commitments differently, which may influence the mortgage amount you’re offered.

Our mortgage advisors in Cardiff can compare suitable lenders’ affordability calculations and help you establish a realistic budget before you commit to purchasing a property.

Using a mortgage broker for shared ownership in Cardiff can give you access to a wider range of suitable mortgage options than approaching one lender directly.

Not every mortgage lender supports Shared Ownership Wales, and those that do can have different requirements for deposits, income, affordability and the properties they’ll consider.

Our mortgage advisors can establish how much you may be able to borrow, compare available mortgage deals and recommend an option based on your circumstances.

We also work with applicants whose circumstances need additional consideration, including self-employed borrowers, those with previous credit problems and people using different sources of income.

Once you’ve found an eligible property, we can help arrange your Agreement in Principle, prepare your mortgage application and communicate with the lender as your purchase progresses.

Having a mortgage advisor involved from the beginning can also help identify potential lending restrictions before you’ve committed time to a particular property.