A shared ownership mortgage is where a council or housing organising allows you to purchase the property at a discounted rate. This is also known as a right to buy. The discount does depend on the length of time you have live and paid rent in the property. If you wish to sell the property you may have to pay back some of the discount that was given. The council will keep a charge on the property until the discount period has finished. The mortgage company will take in to consideration the discount given and look at this as a deposit.

The discount allows the property to be purchased at a much lower interest rate than expected because the value of the deposit.

Type Of Mortgages