Trussle will now also be advising on shared ownership, which allows people to purchase a share of a property whilst paying rent on the rest.
This affordable route to homeownership allows people to buy between 25% and 75% of a home. They can then gradually increase the share they own, a process known as ‘staircasing’, with the option to buy up to 100%.
Dilpreet Bhagrath, mortgage expert at Trussle, said so many renters were unable to save enough for a deposit to buy their own home because of steep rental payments and difficulty saving the deposit.
“With average house prices nearly eight times the average UK wage, it’s clear to see how many people struggle to get onto the property ladder,” she said.
“Shared ownership could offer a route into homeownership more quickly than buying a home outright.
“While there are still rental payments due on the share of the property you don’t own, it’s possible to build equity in the property right up until you own 100% of the home.”
Demand increased
Since 2010, demand for shared ownership has increased by more than half according to Savills Shared Ownership report 2019. There were more than 13,400 shared ownership completions in 2018, a 69% rise on those in 2010.
There are now more than £200,000 households living in shared ownership homes.
One of the benefits to shared ownership is that it can help people afford homes in areas they might not otherwise be able to consider – particularly if they want to live close to their work in a big city.
Trussle has advised anyone considering these options to speak to an adviser first to ensure you are able to access all the options available to you.
It said it was working with 90 lenders to offer over 150 shared ownership mortgage products. Meanwhile, it has produced a guide to help anyone considering this more affordable option, you can read it by clicking here.
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