It's Free to Speak to an Advisor, 7 days, 8am - 10pm

Government Schemes to Help You on to The Property Ladder in Leeds

Home Buying Mortgage Advice in Leeds

In the early part of the last decade, the UK government launched the Help to Buy initiative. This was an expansion on their previous FirstBuy Scheme, aiming to assist potential homeowners, particularly first-time buyers, to step onto the property ladder. Over the years, some of these schemes have ceased to exist, while others have persisted without the Help to Buy moniker. The best-known and most frequently used one was the Help to Buy Equity Loan Scheme, which stopped accepting new applications at the end of 2022.

This implies that first-time buyers can no longer use Help to Buy in Leeds or elsewhere in the UK, but this doesn’t mean they’re left without any avenues to homeownership. Other well-designed schemes are still available to assist potential home buyers in Leeds!

Forces Help to Buy Scheme

The forces help to buy schemes in Leeds was initiated to enable regular personnel of the armed forces to become homeowners. With a significant number of these men and women finding it challenging to secure a mortgage, this initiative was unveiled. It began as a trial program, but due to its successful reception and usefulness, the government decided to permanently implement it.

Eligible borrowers under this scheme can get up to 50% of their yearly salary, capped at £25,000. This borrowed amount can be used towards the deposit or other fees associated with buying a house, for example, solicitor’s and estate agent’s fees. The application process can be done through the Joint Personnel Administration System, or with the aid of a mortgage advisor in Leeds.

As a mortgage broker in Leeds, we’re here to clarify the intricacies of this scheme and help you determine your eligibility. Let us handle the details for a worry-free and straightforward mortgage experience.

Shared Ownership Scheme

With shared ownership, buyers can own a portion of a property, with a housing association owning the remaining percentage. This implies that you will be paying a mortgage based on the percentage you own, and rent on the housing association’s ownership share. Typically the property percentage share to be purchased lies between 25%-75%, though exceptions can be made.

With time, should your financial capability increase, or after you’ve paid off your share, you can decide to purchase the rest of the property if the housing association allows it.

Lifetime ISA

Although it isn’t prominently mentioned in the mortgage market, the Lifetime ISA (Individual Savings Account) scheme greatly contributes to getting first time buyers in Leeds to own homes. It is often confused with the already expired Help to Buy ISA, hence, the underutilization of the scheme.

The Lifetime ISA in Leeds allows you to save for either your first home or for later life. The account lets you save money in an interest-free savings account, with the government adding a 25% top-up for the amount you’ve saved each year.

To access your savings for a property purchase, you must have operated the Lifetime ISA for a minimum of 12 months. There are also penalties for unauthorized withdrawals, usually ranging between 20-25% of the saved amount.

10 Factors to Help You Decide Where to Live in Leeds

Relocation to a new home is a significant decision that requires thoughtful consideration about your future objectives and possible changes over the next five to ten years. To guide you in making the most suitable selection, we have built a list of ten considerations to take into account when choosing the location for your next move.

1. Busy city or relaxing countryside?

Where you opt to live will largely depend on your personal circumstances. For instance, first time buyers in Leeds could be more inclined towards city living, whilst families and older folks might favour the tranquillity of a town, village, or rural home. Nevertheless, the ultimate choice remains in your hands.

2. Transport Links

Ease of transport is paramount in choosing a home. Commuters should evaluate the accessibility to major roads or motorways. Those depending on public transport may find city living more convenient. Always consider commuting costs and time, and consider walking or cycling to work if feasible.

3. Schools & Education

For families, schools are a top priority when house-hunting. If your children are at school or college, you may grapple with the decision to maintain them in their current institution or move them closer to your new location. Your intended distance of relocation will influence this choice. If you’re planning a family, this factor should also be contemplated, as the proximity to schools will eventually become crucial.

4. Nearby Facilities – What You Need vs What You Want

Distinguishing between essentials and luxuries is important. While having a gym around the corner could be nice, more immediate needs like grocery shops should take precedence.

5. Friends & Family

Moving away from friends and family can be difficult, particularly if you spend significant time with them. Many people move to be nearer to their loved ones, as having family and friends nearby can provide helpful support, such as childcare.

6. Is the property good value for money?

Getting good value for your money is essential when acquiring property. Check out prices of comparable properties on websites like Rightmove or Zoopla to gauge if you’re getting a deal. If you’re overpaying, the lender could devalue the property during the mortgage appraisal.

7. What is the community like?

Some prefer vibrant communities with frequent events, while others are more inclined towards tranquillity. Facebook groups can give you a flavour of the local atmosphere.

8. Career Changes

A primary motivation for relocation is to adapt to new career paths. However, with an increasing option to telecommute, this factor may no longer hold as much weight.

9. Type of Property

Your preferred type and size of accommodation plays a significant role in the choice of location. You may find semi-detached or terraced houses in the city, with larger homes in the countryside. Family size, future plans, and financial situation are key influencers of this decision.

10. Local Developments

Before committing, it’s paramount to research if there are any planned local projects. Large-scale housing developments could disrupt your peaceful countryside life.

Next Steps

Our ultimate goal is to arm you with information to make the best decision on where to move. Once you’ve found your dream home in a desirable location and ready to proceed, our team of highly experienced mortgage advisors is here to guide you. Book a free mortgage appointment with one of our certified mortgage advisors in Leeds at your convenience online. We eagerly anticipate working with you on your home moving journey!

Can You Get a Mortgage With Bad Credit in Leeds?

Can I Get a Mortgage with Bad Credit? | MoneymanTV 

Bad Credit Mortgage Advice in Leeds

Unsecured credit is a topic that should not be taken lightly. We regularly speak with customers who are in dire need of specialist mortgage advice in Leeds. Having things like missed payments, low credit scores, CCJs, and defaults, will have an impact on the maximum amount you can borrow for a mortgage.

If you have too many missed payments on something like a mobile phone contract, you may find yourself with a default attached to your credit file. If you are looking for a mortgage in the future, this can cause you trouble because it shows that you may be unreliable with payments.

That said, missing a couple of payments or defaults is not the end of the world. While talking to a specialist mortgage advisor in Leeds can help navigate the mortgage process, there may be some suitable choices for you.

If you have a lower deposit, your chances of being declined are more than likely. If you have a suitable size deposit though, even if you have bad credit, a mortgage may still be an option for you, but you could face high interest rates.

A specialist mortgage lender wants to know when and why your default was registered against you. The further away it is and depending on whether there is a good enough reason, the more likely you are to achieve mortgage success.

People do make mistakes and if it is a genuine, honest mistake that your default was issued, the mortgage lender may be a little more sympathetic during your application.

Bad Credit Mortgage FAQs 

We have compiled a list of frequently asked questions and answers in addition to bad credit mortgages.

If your questions or situation cannot be found below, feel free to book your free mortgage appointment and we will see how we can help. Our team can provide great mortgage advice in Leeds and have a lot of experience in dealing with complex mortgage situations and may have met something similar before.

What will my mortgage advisor in Leeds need to see? 

No matter what type of credit problems you have had in the past, your mortgage advisor in Leeds will need to see an up-to-date copy of your credit report, which you can typically obtain online for free.

You must get your credit report before applying for a mortgage, especially if you have a poor credit history. Multiple failed credit searches can affect your credit rating and potentially prevent you from getting a mortgage altogether.

I have a good income but bad credit, can I still get a mortgage? 

The answer to this question depends on your circumstances. We find that many clients can be quite confused by their credit score and need help understanding why it may be a problem.

To some customers, their credit score may not look the best, but in their eyes, they might have a good enough deposit to lower the rate and a consistent income. Even so, because of the risk, a mortgage lender may not like them to borrow anything at all.

The mortgage lender must have absolute certainty that you can keep up with your mortgage payments without the possibility of falling into arrears. If you do fall into arrears, the mortgage lender may need to repossess your home. Contrary to widespread belief, they will want to avoid this if they can.

While it may sound challenging, there are still options for bad credit mortgages, though we tend to find they come with higher rates. At this point, the most beneficial step is to book an appointment with an experienced mortgage broker in Leeds.

I’ve had mortgage problems before, will that stop me from getting a mortgage?

In many situations, you may struggle to keep afloat financially for reasons you cannot control. This can leave you unable to make mortgage payments you had no trouble paying.

Unfortunately, such circumstances happen. Even if it could only be a momentary blip, you can repay quickly enough, a missed payment may still appear on your record.

No matter what credit problems you face, you may face a challenge when it is time to remortgage, buy your first home, or move home.

Providing open and honest bad credit mortgage advice in Leeds, we have had a lot of experience in helping customers who were previously tied to a mortgage and have since found themselves with a bad credit history.

If you are in a comparable situation, it will be beneficial to talk to a mortgage broker in Leeds on your way to finding future mortgage success.

What other types of adverse obstacles are customers facing? 

Customers may face all kinds of bad credit issues, all of which can cause great grief during the mortgage process. Some of these issues include but are not limited to; 

Although none of these are particularly great circumstances, it is not necessarily the end of the road for you. With higher mortgage rates, you may have a longer, more challenging process, but there are specialist mortgage lenders who can help.

You need to focus on improving your credit score to increase your chances of mortgage success and access to better interest rates. We have a useful article that we have written on How to Improve Your Credit Score in Leeds, which will hopefully help you to obtain a mortgage in the future.

Get in Touch for Bad Credit Mortgage Advice in Leeds

If you need bad credit mortgage advice in Leeds, don’t hesitate to book your free mortgage appointment online and one of our mortgage advisors in Leeds will see how they can help.

We have over 20 years of mortgage knowledge and experience on our side, working hard to make sure that we have a definite plan of action regarding your credit score, ahead of your mortgage process. We hope that the eventual outcome has you with your mortgage. 

What Can I Do If I’ve Been Declined For a Mortgage in Leeds?

Mortgage Advice in Leeds For Complex Situations

Every mortgage lender operates uniquely, using distinct methods to determine who qualifies for a mortgage and who, unfortunately, does not.

The criteria of some lenders are more challenging to meet than others, with the key to success depending on their strictness and the quality of your credit score.

In our extensive years of service, we’ve often witnessed mortgage applications being declined simply because the customer doesn’t meet the specific criteria for that particular deal.

This highlights the importance of seeking advice from a dedicated mortgage broker in Leeds. Our team of experienced and committed advisors diligently works to identify the most suitable lender for you, considering your personal circumstances.

How can I avoid disappointment from a mortgage?

Before applying, it’s important to review your credit file to assess its standing. If it needs improvement, speaking with an open and honest mortgage broker in Leeds can provide guidance on prioritising steps to enhance your credit score.

It’s essential to acknowledge that only a few individuals realistically qualify for every available deal. Homebuyers and movers often find themselves searching for the wrong mortgage deals.

The fact that a deal is cheap and appealing doesn’t guarantee qualification, as lenders have specific criteria. As a seasoned mortgage broker in Leeds, we recommend thorough research into the various types of mortgages or reaching out for a free initial mortgage consultation.

What are other mortgage applicants doing?

Many customers use price comparison websites to find a mortgage in Leeds, but it’s important to understand their limitations. While they analyse costs, these platforms don’t consider all the nuances of a lender’s criteria.

Relying solely on this process may lead to wasted time, potential property loss, or disruption in a property chain. Picking the wrong mortgage could even harm your credit score through a failed application.

Reduction in your mortgage loan amount

Customers might be eligible for various mortgage deals, but lenders may offer reduced deals based on their criteria. Lenders often change their initial borrowing amount, and it’s common for borrowers to face adjustments in the offered mortgage terms.

As mentioned, each lender has a unique approach to the mortgage process, making it unlikely to match all their individual criteria. It’s important to narrow down options and determine the most suitable choice.

Accepting help from a dedicated mortgage broker in Leeds

Whether you’re a first time buyer in Leeds or looking to move home, seeking expert mortgage advice is always beneficial. Our dedicated team provides continuous support and aims to find the most appropriate mortgage deal for your circumstances.

Having collaborated with thousands of customers over the years, we’ve helped in specialist mortgage cases, helping individuals achieve success with mortgages they thought unattainable.

Approaching a trusted and dedicated mortgage broker in Leeds also offers insights into improving your credit score, especially in challenging financial circumstances. For assistance with specialist mortgage situations in Leeds, contact us today for a free initial mortgage consultation.

About Shared Ownership Mortgages in Leeds

The Pro’s & Con’s of Shared Ownership Mortgages | MoneymanTV

Shared Ownership is your key to homeownership, introduced post the Credit Crunch as part of the government’s Help to Buy initiative. This scheme is tailored to help first time buyers in Leeds facing challenges in getting on the property ladder.

How does Shared Ownership work in Leeds?

In Shared Ownership, you don’t buy the whole property; instead, you own a percentage (usually between 25% and 75%) and pay rent on the remaining share. This option provides financial flexibility, making homeownership more achievable.

Who can qualify for the Shared Ownership Scheme? 

To join Shared Ownership, ensure your household income is under £80,000. This scheme exclusively caters to first time buyers in Leeds or those in the process of selling a property. You must not own another property at the time of purchase and demonstrate financial responsibility.

This means showing you have no missed payments on mortgages or rent, and maintain a positive credit history. Additionally, prove you can cover all costs associated with Shared Ownership.

Am I able to sell the property? 

Upon achieving full ownership, you gain the right to sell the property yourself. However, the housing association holds the ‘first refusal’ right for a specific period after your initial purchase. Once this period lapses, you have the freedom to sell to anyone.

Free Mortgage Appointment in Leeds

If you need advice with a Shared Ownership, our friendly advisors are available 7 days a week.

Whether you’re a seasoned buyer or a first time buyer in Leeds, we’re here to provide support. Book your free mortgage appointment today and we’ll see how we can help.

How to Negotiate on a Property Price in Leeds

How to Negotiate on a Property Price in Leeds | MoneymanTV

First Time Buyer Mortgage Advice in Leeds

Navigating the property offer process can be complex, especially for first time buyers in Leeds. The delicate balance of offering less than the asking price while ensuring your bid is still competitive can be challenging.

As seasoned mortgage brokers in Leeds, we understand the intricacies of this negotiation dance. We often advise clients to find the “magic number” – an offer neither too low nor too high, aligning with the property’s true value.

This may not be achieved with the initial offer, making it essential to have a mortgage advisor in Leeds by your side for guidance and support. Our experts can lead you through the process, increasing your chances of success in a competitive market.

Getting Ready to Make an Offer and Negotiating Asking Prices

A quick tip for property offers: if your first offer is accepted, you may have bid too high. It’s wise to offer less than your maximum to leave room for negotiation.

Getting your Mortgage Agreed in Principle 

Estate agents often inquire whether you’re a cash buyer or require a mortgage. Cash buyers can be attractive to sellers for their ability to complete transactions swiftly.

However, if you need a mortgage, having an agreement in principle (AIP) is important. We, as mortgage advisors in Leeds, can arrange your AIP promptly, providing you with a solid foundation for making an offer.

Sell Your House Before you Make an Offer 

For those moving home in Leeds, selling your current property before making an offer on another is advisable. The sale provides the deposit for your new purchase, streamlining the process.

However, circumstances may lead you to explore potential homes before selling. While not ideal, our advice is to proceed cautiously and be transparent with the seller about your situation.

Get Organised 

Preparation is key when making an offer. Ensure all necessary documents are in order, including proof of ID, address, deposit, and financial statements. Working with a dedicated mortgage broker in Leeds, like us, can simplify this process, ensuring your application is comprehensive and appealing to lenders.

Emotional Connection

Amidst the challenges of the home-buying journey, remember the emotional connection between the buyer and seller can play a role. Sharing your plans for the property, especially if they align with the seller’s experiences, can create a positive connection.

Listen Out for Clues 

If given the chance, inquire about the seller’s future plans, reasons for moving, and the property’s history with other offers.

These details may provide insights into the property’s value and potential negotiation points. Understanding the seller’s perspective can empower you to make informed and strategic offers.

Right to Buy Mortgage Advice in Leeds

Mortgage Advisors in Leeds

If you reside in Leeds and currently occupy a property owned by the local authority (either the council or housing association), you may have the opportunity to become a homeowner through the Right to Buy scheme in Leeds.

The Right to Buy Scheme, if you meet the eligibility criteria, empowers you to purchase the property at a discounted price. Instead of paying rent for a property that isn’t yours, with potential variations in the monthly mortgage payment, you can truly call it your home.

If you’re new to the Right to Buy in Leeds or find any information here confusing, feel free to reach out for expert Right to Buy mortgage advice in Leeds. Our dedicated mortgage advisors are available throughout the day to address any queries you may have.

Right to Buy Mortgage Advice to Buy Your Rented Home

Drawing upon our extensive experience in the industry, we possess in-depth knowledge of Right to Buy mortgages and can guide you through the entire process seamlessly.

If the Right to Buy Scheme in Leeds is unfamiliar to you, and this is your first encounter with it, it’s advisable to contact your local authority to verify your eligibility for purchasing your rented home.

Upon confirmation of eligibility, you can expect to receive a Right to Buy offer from them, detailing property prices when the scheme is active and ready.

Given that the offer typically has an expiry date, it’s important to speak with a fast and friendly mortgage advisor in Leeds well before this period concludes.

Upon reaching out to us, we will schedule a free initial mortgage consultation, where we gather your details to comprehend your unique situation. You’ll engage with an experienced and dedicated mortgage advisor in Leeds, who will provide expert guidance throughout the entire process.

How do I find out if I qualify for a Right to Buy discount?

To be eligible for the Right to Buy discount, a three-year residence in your rental property is required, whether this period is continuous or not.

However, the Right to Buy discount is not accessible if any of the following conditions apply:

Additionally, specific living circumstances, such as selected housing for the elderly or having a career in a particular sector, may not qualify for the Right to Buy discount.

How Long Does a Mortgage in Principle Last in Leeds?

What is an agreement in principle?

A mortgage agreement in principle (AIP), also referred to as a decision in principle or agreement in principle, stands as a valuable resource for prospective homebuyers in Leeds. This initial step offers an estimate of the potential borrowing amount before formally initiating the mortgage application.

To secure an AIP, a soft credit check is performed, causing minimal impact to your credit score. Importantly, obtaining an AIP doesn’t bind you to proceed with a mortgage application.

At Leedsmoneyman, our commitment is to provide you with an AIP within 24 hours of your initial mortgage appointment. The validity of this agreement spans 30-90 days, allowing ample time for property exploration and can be easily renewed if it expires.

How to Get an Agreement in Principle in Leeds

When pursuing a mortgage agreement in principle, you have two pathways. You can directly approach a mortgage lender or enlist the assistance of a reputable mortgage broker in Leeds, such as us.

Our seasoned mortgage advisors act as intermediaries with the lender, ensuring a swift AIP process. Every customer is entitled to a complimentary mortgage appointment, during which expert advice is dispensed, and your AIP is delivered within 24 hours.

To proceed with the application, documentation supporting proof of income, employment details, credit history, and other personal information is required. This step offers a reliable estimate of the potential borrowing amount.

When to Get an Agreement in Principle in Leeds

Obtaining a mortgage agreement in principle prior to commencing your property search is a prudent move. It offers a preliminary understanding of your borrowing capacity, enabling you to focus on properties within your financial scope.

Moreover, having an AIP can bolster your position when making an offer, signalling to sellers and estate agents that you are a serious buyer.

It’s important to note that while an AIP provides valuable insights, it doesn’t guarantee mortgage approval; comprehensive assessments are conducted during the full application process.

Information Required to Get an Agreement in Principle in Leeds

When applying for an agreement in principle, the mortgage lender will request specific personal information to assess your eligibility and determine the potential lending amount.

This includes details like income, employment status, credit history, and relevant personal information. Additional documentation may be requested, such as bank statements or proof of income, to inform the lender’s decision.

The Difference Between an Agreement in Principle and a Mortgage Offer

An AIP outlines the potential lending amount based on provided information without forming a legal contract. In contrast, a mortgage offer is a formal, legally binding agreement from a lender, confirming their willingness to lend after thorough checks.

Understanding this distinction is key; an AIP aids in estimating borrowing capacity, while a mortgage offer comes with legal implications.

Impact on Your Credit Score in Leeds

Obtaining an AIP typically has a minimal impact on your credit score, often involving a soft credit check.

While some lenders may perform a hard credit check during the AIP process, visible on your credit report, it’s essential to recognise that the mortgage application itself typically involves a hard credit check. Thus, limiting applications and pursuing an AIP when serious about a property purchase is advisable.

The Benefits of Having an Agreement in Principle in Leeds

An AIP brings several benefits to the mortgage journey, offering clarity on borrowing capacity, helping streamline property selection, and potentially expediting the application process.

It can also enhance the likelihood of offer acceptance, as sellers and agents often favour buyers with an AIP, viewing it as a sign of commitment and active mortgage efforts.

Cost of an Agreement in Principle

Typically, obtaining an AIP is free of charge, representing a lender’s willingness to lend based on provided information. Our mortgage advisors in Leeds can facilitate your AIP at no cost; feel free to reach out for a complimentary mortgage appointment.

Rejection of an Agreement in Principle

Rejection for an AIP doesn’t automatically translate to rejection for a full mortgage application.

Understanding the reasons for rejection, exploring alternative options, and refraining from multiple AIP applications are advisable practices. A mortgage broker in Leeds can play an important role in finding the right lender and guiding you through the process.

Get Your Agreement in Principle in Leeds Today!

For first time buyers in Leeds or those moving home in Leeds, engaging with a mortgage broker like us for an AIP before making offers is strongly recommended.

Our experienced mortgage advisors in Leeds strive to provide an AIP within 24 hours, guiding you through every step of the mortgage journey. Book a free mortgage appointment to embark on your homebuying journey with a trusted mortgage broker in Leeds.

What is a Tracker Mortgage?

Tracker Mortgage Advice in Leeds

Let’s delve into the diverse world of mortgages for home buyers. The market offers a multitude of mortgage types, each possessing unique characteristics with accompanying advantages and drawbacks.

In this article, our focus centres on the tracker mortgage – examining its workings, potential benefits, and why it appeals to homebuyers.

It’s important to note that the suitability of a mortgage deal hinges on the specific circumstances it aligns with, making it essential to conduct thorough research and preparation beforehand.

As a trusted mortgage broker in Leeds with extensive experience, we consistently advocate for being well-prepared and seeking expert advice, especially for first time buyers exploring the property market in Leeds.

For further insights, you can explore our YouTube video on the same topic. Head over to our moneymanTV channel and watch “What is a Tracker Mortgage?” available on this page:

What is a Tracker Mortgage? | MoneymanTV

What is a tracker mortgage?

Now, let’s tackle the key question—what exactly is a tracker mortgage? When on a tracker mortgage, your interest rate mirrors the Bank of England’s base rate, with an additional percentage set by your lender.

It’s important to understand that your lender does not have control over this rate; it is externally determined and must be adhered to.

For instance, if the Bank of England’s base rate stands at 1%, your lender may add a fixed percentage, resulting in your interest rate consistently remaining slightly above the Bank of England’s rate.

Will a tracker mortgage in Leeds benefit me?

The efficacy of a tracker mortgage is evident when the Bank of England’s rate is relatively low, typically hovering around 0-1%, subject to fluctuations throughout the year. Historical instances, such as the credit crunch in 2007-2008, saw the interest rate surge to around 5%.

Coupled with the lender’s added percentage, this could lead to a substantial 6% interest on monthly mortgage repayments.

Conversely, during the initial stages of the COVID-19 pandemic in March 2020, a significant drop in the Bank of England’s rate to 0.1% likely resulted in tracker mortgage holders enjoying a reduced 1.1% interest rate.

Securing a tracker mortgage during such periods, however, proves challenging, as lenders aim to strike a balance between profitability and risk.

The tracker mortgage’s appeal lies in its responsiveness to economic conditions. During periods of economic downturn with a high Bank of England rate, it may not be the most suitable option. Conversely, in a thriving economy with a low base rate, a tracker mortgage becomes an attractive choice.

Different Types of Mortgages in Leeds

Aspiring first time buyers in Leeds have a wide variety of mortgage options at their disposal. However, selecting the right one requires careful consideration of individual circumstances.

Before committing to any mortgage deal, seeking guidance from a trusted mortgage advisor in Leeds is highly recommended. They can navigate the market to identify the most competitive deals tailored to your specific financial situation.

For first time buyers in Leeds, our mortgage advice service proves invaluable. With over two decades of experience in the mortgage industry, we possess expert knowledge of various mortgage types, ensuring personalised guidance for those taking their first steps into homeownership.

Whether you’re a first time buyer, looking to remortgage, or planning to move home in Leeds, our dedicated and compassionate mortgage broker service accompanies you from the initial stages to the completion of your mortgage journey.

What is a Shared Ownership Mortgage in Leeds?

The Shared Ownership Scheme stands as a government-initiated mortgage programme in the UK, designed to help individuals in taking their first steps onto the property ladder.

It caters to permanent UK residents falling into the category of either first-time buyers or previous homeowners struggling to acquire a new property.

In addition, your household income must not exceed £80,000, and the property you aim to purchase will predominantly be on a leasehold basis. Leasehold signifies that you’ll possess the property for a predetermined duration.

Through Shared Ownership in Leeds, you can secure your home through a combination of a mortgage and rental payments. The total of your rental payments will usually be lower than your mortgage payments.

What percentage of the property in Leeds can I purchase?

Initially, when Shared Ownership was introduced, the minimum share you could own was 25%. Now, this has been brought down to 10% for some properties.

Homeowners have the option to increase the percentage share they own through a process called staircasing. This is typically done at the point of remortgage or when the homeowners have paid off the mortgage on the share they own.

If you decide to increase your shares, you can now purchase them in 1% instalments, a change from the previous 5-10% increments.

Moreover, the charges for increasing your extra shares have been lowered. Additionally, your landlord will cover the maintenance and repair expenses for the first decade of ownership.

The rules governing your Shared Ownership in Leeds may vary depending on when you originally took out the mortgage. As a mortgage broker in Leeds, we recommend double-checking the rules of Shared Ownership to ensure compliance.

Feel free to drop a message to our mortgage advisors in Leeds if you are uncertain about how your property is affected.

How do I apply for a Shared Ownership mortgage in Leeds?

Qualifying for the Shared Ownership scheme in Leeds is the first step to access its benefits. The scheme is not universally applicable, so ensuring it aligns with your needs is important before applying.

To determine your eligibility for the Shared Ownership scheme in Leeds, reach out to an agent in the area you are looking to purchase.

Provide them with information such as your income, budget, location preferences, and credit history. Once eligibility is confirmed, the next step is to prepare your mortgage application.

Engaging a mortgage broker in Leeds, like us, is a wise move at this stage. Not every mortgage lender supports Shared Ownership mortgages, but a mortgage broker has access to thousands of deals through various lenders.

Pros & Cons of Shared Ownership in Leeds

Like every scheme, Shared Ownership in Leeds comes with its own set of advantages and disadvantages.

Pros of Shared Ownership

First time buyers in Leeds often grapple with the challenge of saving for a mortgage deposit. However, the Shared Ownership scheme typically demands a deposit only for the percentage of the property you own.

For instance, if you’re securing a mortgage for 20% of a £200,000 property (£40,000 mortgage) and are required to put down a 10% deposit, you’ll only need a £4,000 deposit.

Numerous mortgage lenders, including those on our panel, offer Shared Ownership mortgage products. This scheme has gained popularity in recent years, with first-time buyers choosing it to step onto the property ladder.

Shared Ownership Mortgages provide enduring stability as you become both an owner and occupant simultaneously. The opportunity to purchase your property in the future may be available, depending on your aspirations.

However, before opting for a Shared Ownership mortgage in Leeds, ensure this option aligns with your future plans, as some building societies may have restrictions. Your ability to purchase the property in the future will be outlined in your contract.

Secure tenure is a notable advantage, providing stability compared to the uncertainty of the private market. As long as you can meet your monthly mortgage payments, you can reside in your home for the duration of your lease, typically ranging from 99 to 125 years.

Cons of Shared Ownership

While there are numerous advantages to Shared Ownership, it’s essential to consider the drawbacks. You will be responsible for 100% of the ground rent and service charges for your property, regardless of the size of your purchased share.

As your home is co-owned, seeking approval from the relevant housing provider before making structural alterations is mandatory. This requirement may limit the sense of complete ownership freedom you’d typically expect.

Can I sell my home if I have a Shared Ownership Mortgage in Leeds?

If, after living in your Shared Ownership property in Leeds for a while, you decide to move, the process differs from most other mortgage types. Selling your home depends on the percentage of the property you own, typically requiring 100% ownership shares before selling.

It’s key to note that the housing association retains ‘first refusal’ rights for the initial 21 years after your home purchase. This grants them the opportunity to present a purchase offer before considering selling on the open market.

If you don’t own 100% of the property, your initial step is to try and purchase the remaining shares before selling.

Is a Shared Ownership Mortgage in Leeds right for me?

Shared Ownership may not suit everyone. As a mortgage broker in Leeds, we often find that sole applicants and those struggling to save for a deposit benefit the most from the scheme.

Qualifying for Shared Ownership in Leeds involves meeting specific criteria. To determine your eligibility, reach out to our mortgage advisors in Leeds, and we can assess your circumstances.

To connect with the team, either give us a call or book a free mortgage appointment online. We’re here to provide help and make your Shared Ownership process stress-free!

Leedsmoneyman.com & Leedsmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.

UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.

Authorised and Regulated by the Financial Conduct Authority.

We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk

Equity Release Council Logo Solla Later Life Logo
Facebook Image X Image Instagram Image YouTube Image LinkedIn Image SpotifyImage TikTok Image

Speak to an Advisor – It’s Free!
7 Days a Week, 8am – 10pm

Speak to an Advisor - It's free Enquire Online 0113 827 2263
We use cookies to enhance your customer experience. More detailsGot It