Shared ownership a 'lifeline' as homeownership hits record low

Chris Schutrups, Founder and Managing Director of The Mortgage Hut, says shared ownership mortgages are a "lifeline for most first-time buyers" as homeownership in the UK hits a 30 year low at 64%.

Schutrups said: “The biggest struggle for most first-time buyers is being able to afford the deposit in the first place, which can equate to 5-20% of the property’s value.

“Opting for shared ownership is a great way to get your foot on the property ladder and the deposit can be as little as £2,500. It really is a lifeline for those that can’t afford a full deposit.

“A common misconception with shared ownership mortgages is that you will never fully own the property but you can work your way up to 100% ownership as your circumstances change.

“In some areas the local authority will put an agreement in place to cap the share of ownership at around 75%, which is the only factor to look out for."

Lenders such as Dudley Building Society and the Mansfield have recently widened the availability of their shared ownership schemes.

The Mortgage Hut believes that with the recent interest rate cut, it is likely that savers will generate little or no interest on their savings, "so opting for a shared ownership property would be one of the best ways to get on the property ladder.”