Shared Ownership Mortgages

Mortgage Information

Capital and Interest

The monthly repayment pays off all the amount borrowed together with its associated interest in the chosen time period.

Interest Only

If you choose this type of mortgage the monthly repayment pays off the interest only. Therefore you need to make suitable arrangements to pay off the capital sum remaining at the end of the mortgage term. If you do not make suitable arrangements you may need to sell your property to pay off the capital sum.

It is your responsibility to make these arrangements through an investment vehicle such as an endowment policy, individual savings account plan, pension plan or other plans aimed at paying off the capital sum at the end of the mortgage term.

Interest Rates

If you choose a rate of interest which is fixed, discounted or capped then it may be important to consider the effect of selling your property during the fixed, discounted or capped period. We will tell you whether or not the same terms can be carried to a new property.

Early Repayment

If you repay your mortgage early, e.g. in the first few years, there may be additional repayments to be made. These are shown on your original key facts illustration and will be confirmed in your mortgage offer.

If you choose an interest only mortgage and have an investment vehicle to pay off your capital sum please remember that it will have been designed to run for the term of your mortgage. If surrendered early it may not realise the final sum intended. Seek advice from your financial adviser before deciding on early surrender.

Fees and Charges

The key facts illustration we send you will show whether fees such as the lender's fee and any higher lending charge shown on the illustration, may be added to the mortgage, if you wish, rather than being paid at the time of mortgage completion.

Insurances

Your mortgage offer will require you to arrange buildings insurance for the property you are mortgaging. You may also wish to consider taking out insurance to protect your mortgage payments in the event of accident, sickness or unemployment. You can arrange these insurances with the insurer of your choice.

Your mortgage key facts illustration may also refer to a higher lending charge. This will be explained in your mortgage offer and is used to obtain mortgage indemnity insurance to act as extra security for the lender. If you subsequently do not keep up your mortgage payments and the property has to be repossessed then the indemnity insurance will not protect you if the property is sold for less than the amount owed. You will remain liable for all sums owing and insurers generally have a right to recover this amount from you.

Term

The term you choose to repay the mortgage will depend, amongst other things, upon your age and personal circumstances. Normally the term is arranged to ensure repayment before retirement age. If you are considering having a mortgage term that continues past the age you retire make sure you will be able to afford the payments then.



Your home may be repossessed if you do not keep up repayments on your mortgage. Broker fee only £645 on completion. Authorised and regulated by the Financial Services Authority.