The minimum ‘equity’ to staircase depends ultimately on the lending criteria of mortgage providers prepared to offer staircasing remortgages. Our confirmation that you should or should not be able to staircase assumes that you could obtain a mortgage with such lenders. This mortgage calculator cannot be used as a guarantee of obtaining a mortgage and is simply confirming whether the amount of equity you possess could theoretically support staircasing to a higher share. In terms of credit history and credit score, you should note that for staircasing with the ‘minimum’ equity required to potentially obtain a remortgage, you may find that lenders are strict on credit score, compared to applicants with more sizable equity. Moreover, applicants with poor credit history are unlikely to be able to obtain a new mortgage.
Contacting your housing association
Customers looking to staircase should contact their housing association to advise them of their potential interest in purchasing further shares in their home. The housing association will then be able to provide information on the staircasing process (which is likely to involve a revaluation of your property).
Our monthly cost estimate
In estimating the likely monthly cost of any new mortgage, we have run the information you entered into the calculator via our live database of mortgages rates available in the market today, and used this data (e.g. deposit size) to find the lowest mortgage rate you might realistically be able to apply for. However, we must emphasise that this is no guarantee that in practice you would be able to apply for such a rate, nor is this a recommendation that the rate used would be the best product for you because you would have to take into account a range of items when choosing a mortgage, such as fees.
If you apply for an agreement in principle with the Share to Buy mortgage team we will assess all your information in greater depth and provide you with an illustration for a selection of mortgage options that might be suitable for you and this would provide you with full cost information, including fees.