Shared Ownership Remortgages

The economy is facing challenges today unlike any other in modern memory.  Disposable income for families is down.  Mortgage and remortgage lending criteria is tight, and employee wages are not keeping up with the corresponding level of inflation.  What does this mean for the person looking into a remortgage or the young person attempting to purchase that first home?  It means an increase in stress, anxiety, and a wrench thrown into the home purchase plans of life.  An option many people are considering for remortgaging or home ownership is shared ownership remortgages or original mortgages.  The benefit being the ability to remortgage a property is possible with only a percentage of the cost.

When remortgaging with a shared ownership arrangement, only a percentage of the amount of the property is your responsibility.  It is an effective method for owning a property with only a portion of the cost burdening you each month.  When facing economic challenges or when there is a property worthy of becoming a rental type property, a shared ownership remortgage is certainly a product to look into.

Maybe you are facing the loss of a job or the change in a relationship.  Whatever the reason for having to invent new ways of being able to afford a current dwelling, or looking into partnering with someone for a different dwelling, a shared ownership remortgage arrangement needs to be part of the consideration.

To get started toward a shared ownership remortgage is easy.  First, decide whether you will be interested in staircasing now, or in the future.  Staircasing is purchasing more of the property you are currently remortgaging.  Since you are going through the steps of a shared ownership remortgage, you will only own a percentage of the property you are living in.  If you decide to staircase, then you will put together a plan of eventually buying more and more of the property until you own 100% of it.  Staircasing is popular because currently you are unable to purchase the entire thing, but maybe in a few years your financial status will be stronger so you can own the entire property.  Think of it as buying out your partner.  Many partners will be in favor of the opportunity due to the financial reduction in responsibility as time goes on.

Staircasing is an excellent way of inviting in a partner if you are running short on the ability to remortgage your home or you know of someone who is dealing with the same financial challenge.  Again, when tough financial times strike, a shared ownership remortgage is an effective way of making it through those tough times.  There is even a great chance that when the financial struggling subsides, you will find yourself sitting in a much better fiscal seat.

After deciding on the staircasing issue, a valuation of the property must be done by the housing association.  A valuation, or appraisal, by the housing association will not take long and can be done while you are at home.  The valuation needs to be called and scheduled, which can be done by you or your lender.  Typically, lenders have a stable of home appraisers they call on to obtain a value of the property in question.  When the appraiser comes to the property several things need to tidier than usual.  These things will affect the appraisal amount.  Making sure there are no areas needing to be repainted is a good idea for starters.  Also, the yard needs to be tidy and landscaping needs to look fresh.  On the inside, make sure there are no piles of laundry sitting about and make sure countertops are clutter-free.  These things sound like little details but they add up when the appraiser is looking at the big picture.  Try to look at the property through the eyes of the appraiser before they come up the driveway.

After the home valuation by the housing association, you are ready to put together an official application for a shared ownership remortgage.  This application will be lengthy and will request detailed information about you and the property.  It will also ask you about your intention to staircase or not in the future.  Know the answer to that question before ever filling out the application.  The application will remind you of the original application for your current dwelling.

The application will request basic information, but you also need to provide additional details about your financial status.  Making sure your lender knows about the intended way of paying for the monthly mortgage payment will only help you.

A shared ownership remortgage is beneficial to both you and the other party involved.  It typically allows you to stay in your current dwelling or partner with another individual and help them stay in their current dwelling.  There are many options when looking into a shared ownership remortgage.  Make sure your calculations are checked and re-checked for accuracy.  This is an important decision and one which will affect you for years into the future.  If you decide to eventually staircase the property, make sure your intentions are made clear in the beginning instead of a year from now.  If you make your intentions clear in the beginning then there will be fewer surprises to deal with in the future.  Also, make sure you understand the intentions of the person you are entering the arrangement with.

By doing you research and clearly understanding your plans for the future, a shared ownership remortgage can work out with positive results.