Toolkit for shared owners

If you would like to be considered for one of our shared ownership properties, please contact one of our Expert Financial Advisors. 

Please ensure you tell your advisor that you are applying for a shared ownership home.

All available new build and resale shared ownership homes are advertised here:

Homes for sale | Westward and here Shared Ownership Houses & Homes For Sale - Share To Buy.

To confirm, a full application will include a financial assessment, and a completed Westward application form. You may also be asked to confirm your local connection, if a local connection is applicable this will be mentioned on the specific property advert.

If a local connection is applicable, we will be able to accept the below documents to confirm this.

• Utility bills (gas electric phone etc.)
• Council tax bills
• Bank/Building Society account/credit card statements
• State benefit books or receipts showing rent paid
• Pay slips showing home address
• Written certification from either a Solicitor / Social Worker / Probation Officer / Inland Revenue Officer / Police Officer / Teacher or Doctor
• Full credit report with Multi Agency Credit Report | Free for 30 Days | checkmyfile

You will need to be registered with Westward by completing the affordable home ownership application form above.

We would also recommend that you register with Shared Ownership Properties & Mortgages | Share to Buy  You will then receive email notification alerts for when properties in the area/s you have selected become available. Properties will be allocated to successful applicants based on housing need, affordability and local connection where required.

Your financial advisor will send us a copy of your financial assessment.

Please send your local connection evidence to us using the Sales form below.

If you would like to discuss this further, please contact us on 0300 303 8535 on Tuesday, Wednesday and Friday between 10am and 4pm. Or fill out this web form to contact our sales team:

First Come First Served Policy (New build and re-sales homes) grant funded

Leasehold Management Policy

Monthly Minimum Surplus Income Policy

Sales Allocations Policy grant funded

Sales Allocation Policy non-grant funded

Affordability

Your first consideration should be determining what you can reasonably afford to borrow. Your independent financial advisor will have a process of understanding your income and out-goings to make sure you're not overstretching yourself. You should be confident you can handle the repayments comfortably. Remember, interest rates can do up as well as down, so make sure you've got enough flexibility to cover potential increases in your repayments. Mortgage repayments tend to be one of the largest monthly financial out-goings, so it's always worth shopping around, switching to a better deal if you can, or negotiating with your existing lender to make sure you're getting the best mortgage deal for your money.

Take professional advice

Buying a home is probably the largest financial commitment you will make. Get the best advice possible from a professional. 

Don’t waste money or time

Talk directly to an expert financial advisor who will do most of the work either over the phone or by email. Click here to get started with, The Mortgage People.

They will provide an initial free financial assessment and advise you what share will be affordable for you. 

Deposits

You may also qualify for a better deal depending on how much of a deposit you can put forward. For example, if you have chosen a mortgage that requires a 15% deposit, see what the repayments would be if you decided to pay a 16% deposit.

Mortgage payment protection

Having a mortgage is a big commitment. You should consider the implications of not being able to meet the repayments, through unemployment, accident, sickness or even death. Many borrowers take out a payment protection policy to protect both themselves and their loved ones should the unthinkable happen.

Click here for information on Lifetime ISAs.

Types of mortgage available include:

• Repayment mortgages (or 'capital and interest repayment')

With a repayment mortgage, every month you are essentially paying back both the interest and the capital (the amount you borrowed) to the lender. This is a popular mortgage option as it offers the reassurance that at the end of the agreed term, your property will be totally paid off and you will not owe your lender any more money.

The repayment option also means you're not relying on a linked investment vehicle to generate the money required to pay off the capital at the end of the mortgage term. Although you will have the confidence that you're paying your lender back the full amount each month, this option is more expensive than the interest-only option.

• Endowment mortgages

An endowment is an investment vehicle and used to be a very popular means of helping mortgage holders pay off their mortgage. A homeowner would make the interest payment to the mortgage lender each month and pay a separate amount into the endowment. As well as being a means of saving, it also contains a life insurance element to pay off the mortgage, should you die during the term of the mortgage. Being an investment linked to the stock market, returns can go down as well as up. A large number of homebuyers who were sold endowment policies in the late eighties found that by the end of their mortgage term, there were insufficient funds available to cover the capital repayment, forcing them to find the capital elsewhere. For this reason, endowment mortgages tend to be less popular these days.

• Fixed rate mortgages

Fixed rates are one of the most popular interest rate options for consumers, particularly in an environment of rising interest rates. With a fixed rate, you guarantee that your rate and therefore your monthly repayments remain constant every month for a set period of time, whatever the lender does with the standard variable rate, or what base rates do. The length of time the fixed rate can run for varies depending on the mortgage you choose.

The most common fixed rate periods range between 1 and 5 years, although there are now 25-year fixed rate mortgages on the market. After the fixed rate period expires, the rate reverts to the lender's standard variable rate, which will fluctuate along with base rates. If interest rates are rising, you remain protected against them, but should they fall, you'll miss out on any potential reduction in your repayments.

Be careful, as many lenders will charge you a penalty if you move your mortgage before the fixed term ends. Be sure to shop around for the best deal for you and make sure you read the small print.

• Discounted rate mortgages

With a discounted mortgage rate, you pay a set amount below the lender's standard variable rate for a fixed period of time. For example, if the lender's standard variable rate is 7% and you choose a 2% discount, the interest rate you will pay will be 5% for the agreed term. The terms can range between 6 months and 5 years. Generally speaking, if the term is short, the discount is likely to be greater, while for longer terms the discount is likely to be smaller. These mortgages are particularly helpful if you want to reduce your monthly payments at the outset and are comfortable that you will be able to afford the payments after the discounted period. In some cases the discount can be 'stepped', which means the rate reduces in two or three stages.

• Capped rate mortgages

A capped rate mortgage is like combining a fixed rate with a variable rate. For example, for a defined period of time, your interest rate is guaranteed not to rise above an agreed fixed rate, but you should retain the benefits of smaller repayments should the interest rate go down. The terms can range from between a few months to the duration of the mortgage in some cases. Capped rates tend be more popular in a rising interest rate environment.

However, capped rate mortgages tend to be more expensive than fixed rate mortgages. As with discounted and fixed rate mortgages, you may incur a charge if you move your mortgage before the end of the agreed period of the offer.

• Variable rate mortgages

This is essentially the lender's standard variable rate. It will be higher than any introductory interest rate and your repayments will generally go up or down with base rate changes. Most borrowers will find themselves better off with an alternative special interest rate option, particularly if you switch when introductory offers come to an end. Be aware of any charges that might be incurred for switching mortgages before taking any action.

• Tracker rate mortgages

Tracker rates are relatively new mortgage options whereby the interest rate you pay is guaranteed to stay at a certain level above the Bank of England base rate. The rate will stay in line with interest rates and the market in general. This can go up or down, usually for the term of the mortgage. For example, you might find a deal whereby you pay 1% above the base rate, whatever it may be or change to. Although you pay more if the base rate rises, you will benefit from any reductions in the base rate over the term.

• Flexible mortgages

Originating from Australia, many mortgages now contain flexible features. In essence, they provide you with the ability to overpay or underpay each month. This is valuable if you get regular bonuses, or if your income fluctuates. Interest is often calculated on a daily basis, meaning that overpaying has an instant effect on reducing the balance, and therefore the term, of your mortgage.

Usually, in order to make an 'underpayment', or payment holiday, you will be required to have built up an equivalent amount of credit through overpayments first.

• Current account mortgages

A current account mortgage allows you to use your mortgage through your current account. Effectively, your current account becomes a huge overdraft. For example, if your mortgage was £100,000 and you have £5,000 of credit in current account, your balance will be -£95,000. By paying in your salary and/or savings, the interest you earn will go towards cancelling out some of the interest you owe on your mortgage. If you're disciplined, you can eventually repay your mortgage more quickly.

• Interest-only mortgages

With an interest-only repayment option, your mortgage payments only cover the repayment of the interest from the amount you borrowed, so although your monthly repayments will be lower, you are not repaying the capital (the amount you borrowed). It is advisable; therefore, that you pay a sufficient sum of money into a separate investment vehicle that will produce the capital at the end of the term to allow you to pay off the mortgage.

Note: This type of mortgage is not always acceptable for a Homebuy product as it is considered to carry more risk. This type of mortgage is not acceptable for purchasing a shared ownership property.

• Self-certification mortgages

For those who have problems verifying their income, or whose income is irregular (like the self-employed), there are lenders who will consider granting mortgages under these circumstances.

Note: This type of mortgage is not always acceptable for a Homebuy product as it is considered to carry more risk. This type of mortgage is not acceptable for purchasing a shared ownership property.

Other things to consider:

As well as interest rates and repayment vehicles, there are a few other options worth considering when choosing a mortgage.

Deposits

You may also qualify for a better deal depending on how much of a deposit you can put forward. For example, if you have chosen a mortgage that requires a 15% deposit, see what the repayments would be if you decided to pay a 16% deposit.

Mortgage payment protection

Having a mortgage is a big commitment. You should consider the implications of not being able to meet the repayments, through unemployment, accident, sickness or even death. Many borrowers take out a payment protection policy to protect both themselves and their loved ones should the unthinkable happen.

Islamic mortgages are different to conventional mortgages. Under Islamic law, the payment of interest is forbidden.

There are three models of Home Purchase Plans (HPPs); Iraja, which means ‘lease’ in Arabic; Musharaka, which means ‘partnership’; and Murabaha, meaning ‘profit’. Depending on the model the lender will levy rent or add profit to the amount you pay back instead of charging interest.

An Iraja is a lease-to-own HPP: the bank purchases the property you want then leases it out to you. At the end of the term the bank transfers ownership of the property to you.

Under a Musharaka plan (also known as 'diminishing Musharaka'), you buy the property jointly with your provider and gradually buy the bank out of it. So if you put down 10 per cent of the purchase price, the bank will buy the remaining 90 per cent. You pay the bank monthly rent on the share you don't own as well as buying more shares in the property with each monthly payment, with a view to owning the property outright at the end of the term - hence the 'diminishing' nature of the partnership. The more shares you own, the less rent you pay to the bank, and the cost of a share in the property is based on the property's original cost price, not its market value.

In a Murabaha plan, the bank will buy the property you want then immediately sell it on to you for a profit. You then pay fixed monthly repayments on the higher price, but with no interest to pay back to the bank. So the bank might buy a property that costs £200,000 and sell it on to a customer for £250,000; the customer then pays that sum back over a fixed term

The following are a list of financial institutions that offer Sharia-compliant home loans:

• HSBC through its Islamic finance arm, HSBC Amanah
• Natwest
• Arab Banking Corporation
• Lloyds TSB (underwritten by Bristol & West)
• Ahli United Bank
• United National Bank
• Islamic Bank of Britain (IBB)
• West Bromwich Building Society

Selecting the right solicitor is a key part of your journey to home ownership.

The right solicitor can keep the cost down, save time and reduce the stress involved in buying a home.

When choosing your solicitor please let them know you are purchasing through shared ownership. Your solicitor should have a good understanding of shared ownership, if they don't you could be charged more and it could take longer to buy a property. This is an in-depth list explaining what your solicitor does during the sales process.

What will your solicitor do for you?

1. Will work for you and take your instructions, so don’t be afraid of asking questions they are there to help you through the legal process.

2. Will deal with all the necessary paperwork including, leases, enquiries, Home Information Packs, land registry, title of property, and exchange information with the seller’s solicitor.

3. Arrange to meet with you to go through the contract and mortgage details.

4. Keep you updated as the legal process continues.

5. Request that you sign the contract when all details have been agreed. You may be required to provide a deposit at this stage.

6. Once contracts have been signed by both parties this now makes the transaction binding on all parties. Referred to as exchange of contracts.

7. If you are going to be responsible for buildings insurance then you need to arrange insurance at this time.

8. Draft a Transfer and forward this to the seller’s solicitor for approval. Prepare Stamp Duty Land Tax form (if applicable) and arrange for you to sign the Transfer in readiness for completion.

9. Prepare completion statement setting out the balance required from you, prior to completion: note this amount is required in cleared funds.

10. Request mortgage advance from your lender and make final searches.

11. On the completion date, forward purchase monies to the seller’s solicitor. On receipt they will arrange for the keys of your new home to be released to you.

12. Send off Stamp Duty Land Tax form and payment to the Inland Revenue, if applicable, and make application to the Land Registry to register the change of ownership and new mortgage.

13. Check the up-to-date Title Information Document upon receipt from the Land Registry. Any deeds and documents that that not required by your lender will usually be forwarded to you for safe keeping.

The conveyancing process can be daunting, don't let it be, this flow chart explains what a vendor and a purchaser's solicitors will be doing during the sale process.

To understand any terms you hear that may be new to you during your research into shared ownership, please use our jargon buster below. 

Advance

The amount borrowed from a lender as a mortgage

Annual Percentage Rate (APR)

The total charge for a loan including fees and interest expressed as a percentage.

Buildings Insurance

Covers the building against damage covered by the policy – it is taken out the day contracts are exchanged.

Completion

1. The final legal transfer of ownership of a property – when the property becomes the purchaser’s.

2. The start of the mortgage. This is also known as ‘drawdown’.

Contents Insurance

Cover for the contents of the home – including furniture, appliances and personal items – against the risks covered by the policy e.g. fire or theft.

Contract

The written agreement between the seller and the buyer of a property on transfer of ownership.

Conveyancer

Solicitor or licensed professional who deals with the legal aspects of buying or selling land or property.

Conveyancing

When you are buying or selling a property, the paperwork required to transfer the property title from the seller to the buyer is called Conveyancing.

Deposit

Two deposits may be payable by a buyer:

1. A reservation charge – the buyer pays this as a sign of commitment when initially agreeing to buy the property.

2. The deposit – a percentage of the price of the property, paid when contracts are exchanged.

Draw down date

The date the mortgage starts.

Early repayment charge

A charge payable on certain types of loan if it is repaid or partly repaid within a certain period e.g. during a fixed-rate period or while a discount applies.

Equity

The homeowners share of the house is called equity, simply put equity is the difference between what your house is worth and what you owe on it.

Essential repairs

Work required on a property before the mortgage loan can be issued.

Exchange of contracts

The point when both buyer and seller are legally bound to the transaction and at which point the buyer should take out buildings insurance on the property (In the case of some HelptoBuy products this will be arranged by the housing association).

First mortgage payment

This is usually higher than the rest of your monthly payments because it includes interest charges from the day the loan is issued to the end of the month plus the first full monthly payment.

Freehold

Outright ownership of a property and the land on which it stands.

Ground rent

An annual charge payment by a leaseholder to the freeholder.

Guarantor

A person who promises they will pay the borrower’s debt, usually if the borrower fails to.

Home & Communities Agency (HCA)

Regulating body for housing associations. Implements regional and national housing strategies and invests in the supply and quality of affordable homes.

Homebuyer’s survey

A surveyor’s report on a property which is more comprehensive that an valuation for mortgage purposes but is not a full structural survey.

Income multiplier

An income multiple or income multiplier is the formula used to calculate how much a person can borrow. This is used, together with other financial details by the Help to Buy Agent to assess how much applicants can afford, when buying a property.

Independent financial advisor

An Independent Financial Adviser’s job (IFA) is to help you sort out your financial needs and recommend financial products and services to meet them.

Intermediate housing

Sub-market housing include low cost home ownership schemes, designed to meet the needs of households who cannot access full cost market housing but who can afford more than housing association and council rents.

Intermediate rent

Term used for the rent on intermediate housing. For example this could be 80% of the market rent for a property.

Key worker

A term used by government to define people who do jobs that are essential to the community, such as fire-fighters, nurses, teachers etc. The full list of keys works can be found on the Homebuy agent’s application form.

Land Registry certificate

Provides details of the property including a plan and, if the property is leasehold, a copy of the lease.

Land Registry Fee

A fee paid to the Land Registry to register ownership of a property.

Leasehold

The right to possession, but not full ownership, of a property for an agreed period of time. Ultimate ownership belongs to the freeholder.

Lender

The bank or building society from where a mortgage is obtained.

Lessee

The person to whom a lease is granted – the ‘tenant’.

Lessor

The person or company who grants the lease – the ‘landlord’.

Life assurance

An insurance policy that pays a lump sum on death. Often taken out with a mortgage, to provide money for the loan to be repaid if the borrower dies during the term.

Low Cost Home Ownership (LHCO)

Low cost home ownership – subsidised housing in the private, owner-occupied sector which is available to people who cannot afford to occupy houses generally available on the open market.

Mortgage

Has a specific meaning in law but has come to mean a loan with property as security.

Mortgagee

The mortgagee is the lender who lends money in return for the mortgage granted by the borrower, who is the mortgagor.

Mortgage term

The term over which a loan will be repaid.

Negative equity

When the value of the property has fallen and is less than the loan secured on it.

NHBC guarantee

A 10 year guarantee, provided by the National House Building Council, that the builder will put right serious defects on a newly-built property. Zurich Municipal and Premier Guarantee all offer similar.

Payment protection

Insurance which pays your monthly payments, usually for a specified period, if you lose your income through sickness, injury or unemployment.

Section 106

Allows a local planning authority to enter into a legal agreement with a land developer. This agreement often requires them to ensure that the local community will benefit from the homes being provided. This sometimes leads to restrictions on buyers as to their local connection with the area of a particular development.

Service charge

A payment made by an occupier for services provided by a landlord or agent for the

maintenance and upkeep of property and communal areas.

Shared ownership

A term used to describe a purchase where the buyer buys part of the property, usually from a housing association, and rents the part not owned. Lessees usually have the option to increase their ownership in the property by buying extra shares until they own the property outright.

Stamp Duty

The tax that is payable on the property. Stamp duty is exempt for properties of less than £125,000. (This is the case at the time of printing).

Title Deeds

The phrase loosely refers to documents establishing ownership of property and on what terms. The title to property is registered at H M Land Registry.

Valuation

An inspection of the property to ascertain its acceptability to the lender as security against the mortgage loan, for which the borrower may have to pay.

Vendor

The person(s) who is selling a property.