The information displayed in the table below outlines the potential mortgages you could arrange for a Shared Ownership property.
Variable (Standard Variable Rate)
A variable or standard variable rate mortgage is a rate which is set by each mortgage lender and is the rate which borrowers will usually revert to once they have come to the end of an initial fixed or tracker rate.
A fixed rate mortgage is one where the interest Rate that you pay is fixed for a set period of time usually 2, 3, 5 or 10 years.
A tracker mortgage is one where the interest rate will be a given percentage (currently above) the Bank of England base rate for a set period of time. It is a variable rate as the interest rate will change at the same time as any change in the Bank of England base rate.
A discount rate is a variable rate that offers a discount on the lenders’ standard variable rate for a set period – normally 2 to 5 years.
Mortgage lenders are generally only willing to consider an interest only loan if you have a 50% deposit or more and where you can show an acceptable repayment plan. In practice the housing association is most unlikely to agree to your taking out an interest only mortgage on a Shared Ownership purchase.
If you see an offer you are interested in, click Next Steps to see info on how you proceed with an application.