Shared ownership mortgages

If you're buying a home on a shared ownership scheme - usually with a housing association - your choice of mortgages is more limited than with traditional loans.

Lenders tend to be less keen on shared ownership mortgages because they have concerns over whether the borrowers are as financially secure as others.

After all, they are taking out a shared ownership because they can't afford a normal one.

Also, because a housing association needs to be involved (as it's a part owner of the property) it makes it legally more complicated.

A good mortgage broker will be a help, and the housing association will be able to help as well.

And remember to get the right mortgage for you: Do you want a fixed or variable rate - or maybe a discounted one?

A repayment mortgage is the best solution: With an interest-only deal, you're not repaying the original debt.

Indeed, many lenders will demand that if you have an interest-only loan, you prove you've got an investment or savings plan in place.