Remortgaging your shared owner home

remortgage image

At some point you may wish to remortgage your shared ownership home. This could be to take advantage of a better rate or to borrow more to make home improvements.

At this uncertain time, we understand that shared owners with mortgages will be worried about rising interest rate charges and may be unsure of where to turn. Below is some info about your options:

  • Remortgages

    If your current mortgage deal is coming to an end, or you are looking for a better deal, it's important to think about remortgaging to ensure you secure the best possible rate.

    A lower interest rate means lower monthly payments and a reduction in the overall cost of your mortgage.

    The expertise and experience of independent mortgage advisors can help guide you smoothly through the entire process, as well as helping you to avoid any pitfalls such as hidden fees or early repayment charges.

  • Mortgage protection

    Although nobody wants to think about what might be around the corner, it is essential to protect yourself against the potential hazards of life.

    As well as life insurance to help safeguard your family in the event of death, it's also important to consider how you would pay your mortgage if you were suffering from a critical illness.

    An independent advisor can help you to arrange robust, affordable cover to give you peace of mind.

  • Staircasing shared ownership

    As a shared owner, you have the option to staircase your shared ownership property, allowing you to purchase further shares, in order to own a larger proportion of your home.

    Advantages can include lower rent payments and greater benefit if house values increase.

    An independent mortgage advisor can find the best shared ownership mortgage product for you.

    Find out more about how staircasing works.

  • Recommended Independent Mortgage Advisors

    If you wish to look into any of these options, we recommend that you talk to an Independent Mortgage Advisor to confirm your options.

    Please see below a couple of independent financial advisors we work closely with who have a good understanding of shared ownership mortgages. They are not associated or part of Midlands Rural Housing. Please contact them directly to discuss their services and fees.

    Jamie Hastie of Hawthorne Mortgages

    T: 0115 9638965
    M: 07941 041150

    Mark Singleton of Mortgage Advice Bureau

    T: 01327 703252
    M: 07971 213099

Find out more about the process involved

  • What are the options when remortgaging?

    When you're looking to remortgage there are normally three options:

    • Remortgage - move to a different mortgage provider or to a new deal with your existing lender, but without borrowing more money.
    • Further advance - staying with the same mortgage provider, but borrowing extra money for home improvements.
    • Remortgage and further advance - doing both, changing mortgage provider and borrowing more money.
  • Mortgage approval

    Because we own part of your home too, you'll need our approval to any changes to your mortgage or lender.

    And your new mortgage company will also need our permission to proceed.

    We don't normally have any objections to a remortgage or further advance on a shared ownership property. However, prior to approving, we'll need some information from you:

    1. Your new mortgage offer, showing the current value of your home and the exact amount being borrowed.
    2. Redemption statement on your existing mortgage.
      You'll need to request this from your current lender. This will normally include your current mortgage balance, outstanding interest and any early repayment charges (if applicable).
    3. Confirmation of what the remortgage is for.
      This could be for a better mortgage rate, because you've come to the end of your current mortgage term or for home improvements. If it's for home improvements, alterations or additions to your home, you must obtain our written permission before starting the work. Find out more about making improvements to your home.

  • Administration costs

    You'll be required to pay an administration fee of £100.00, payable on completion.

Please note: the information on this page is for guidance only. You should always refer to your lease for comprehensive information and get legal advice where necessary.