Shared Equity Mortgages
Shared equity mortgages enables mortgage borrowers to make lower repayments on their mortgage. In return, the mortgage lender receives a stake in the equity in the property.
What are the benefits of shared equity mortgages
Shared equity mortgages allow home buyers who have little or no deposit, or receive low salaries, to get on the property ladder.
What are the drawbacks of shared equity mortgages?
As the mortgage lender takes a share of the profit (or equity) in the property, the borrower will not make as much money when the time comes to sell the property, so progress up the property ladder can be slower.