For customers who already own a shared ownership property, 'staircasing' is the process of purchasing further shares including up to outright ownership. For most customers, staircasing is likely to involve a new, larger mortgage. Since 100% mortgages are generally not available, this tool enables you to find out if you are likely to have enough equity in your home to purchase your desired share, and also provides an estimate of how much the new mortgage might cost. There are important notes below the tool on the assumptions we have made.
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.
20th September 2017
Shared Ownership Week returns for its fifth year, 21st - 27th September. Shared Ownership week raises awareness this home ownership scheme which offers a life line to thousands of first time buyers.
19th September 2017
Countdown to the London Home Show Autumn 2017: Our sponsor Crest Nicholson give you the low down on their fantastic development Dylon Works, available via Help to Buy London.
18th September 2017
Countdown to the London Home Show Autumn 2017: Hear Marco and Olga's story about buying their first home for their young family with Notting Hill Sales.
16th September 2017
Countdown to the London Home Show Autumn 2017: L&Q's Lucy Chitty dispells some of the myths about home ownership.
Why not visit us at our next London Home Show, where you can meet Solicitors who specialise in Staircasing. Keep an eye out for announcements on our Share to Buy Facebook page in the Spring & Autumn.