Myth busters – are shared ownership mortgages difficult to place?
With the news that the Government is extending shared ownership schemes to 175,000 more aspiring homeowners in 20161 , mortgage brokers are going to be faced with a growing number of customers who want to take advantage of the increased access to shared ownership. The potential for brokers is enormous, yet many have been reluctant to place what can be seen as a difficult and time-consuming product.
Some housing associations which offer the scheme have relationships with preferred intermediaries in certain areas. Increasingly there are a number of individuals who choose to approach their own broker about shared ownership mortgages and many are being pointed in the direction of experienced mortgage advisers who have knowledge of the scheme, meaning many new potential customers for brokers.
With a number of parties involved in shared ownership deals, brokers may have the perception that the hassle of arranging these products isn’t worth the effort. However, at the stage that customers come to a broker to discuss shared ownership, many will be well on their way through the application for the scheme, and will usually have completed all their initial eligibility assessments. This means that the process for the broker can actually be as straightforward as placing a ‘normal’ mortgage.
The rewards of offering shared ownership products is only set to increase in 2016 when the income threshold for eligibility is raised to anyone with a household income of under £80,000, or under £90,000 in London2 and brokers needn’t be put off by misconceptions around shared ownership. In this series of blogs, we’ll be exploring the myths surrounding shared ownership and how brokers can take advantage of these products. To find out more about the products available and shared ownership call our business development team on 0113 2257722.
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