Shared Ownership 3.49% fixed for two years

A residential, 2 year fixed rate Shared Ownership mortgage giving customers the opportunity to buy 30-75% of their home and to rent the remainder.

  • Affordability calculator Want to know if you can afford this mortgage?

    Gross annual income

    Mortgage details

    This is the maximum amount based on the information you provided. Your mortgage adviser will take you through the application process and will calculate the amount you can afford to borrow based on your income after the deduction of those expenses and commitments. Further restrictions may apply for specialist products.

Shared Ownership properties are designed to provide affordable housing for people who cannot afford to buy a home outright.

You can get a shared ownership home through a housing association. You buy a share of your home (between 30% and 75%) and pay rent on the rest. This allows you to get on the property ladder and become an owner occupier, which provides long term stability and security without overstretching your budget. You have the option to buy a bigger share in the property at a later date. 

We require a minimum share of 30% to be purchased and that the lease allows you to purchase additional shares right up to 100% of the ownership.

Most of the homes available are newly built, but some are properties being re-sold by housing associations.  All shared ownership homes in England are offered on a leasehold only basis.

Interest
rate i
SVR (standard variable rate) i Overall cost for comparison i Max %
LTV i
Payment
typei
3.49% 5.44% 5.3% APRC 95% Repayment only
  • See example

    Representative example: A mortgage of £104,000 taken out for a period of 25 years on a repayment basis.

    Monthly instalments: £521.18 per month for 23 months, followed by £630.28 per month for 276 months.

    Total amount payable: £186,584.42

    Total amount of credit: £104,000

    The total amount payable includes administration fee £125, valuation fee £340, product fee £0, completion fee £75 and closing fee £100.

    The overall cost for comparison is 5.3% representative APRC.

    This example relates to the Shared Ownership fixed for two years product, is based on a typical mortgage and assumes that fees are not added to the mortgage. Please ask for a personalised illustration for your own particular requirements.

  • Availability - Purchase & Remortgage up to 95% Loan To Value (LTV). Minimum 5% deposit required.
  • Flexibility - Overpayments up to 20% of the capital balance as at 1st January are allowed in each calendar year without penalty. 
  • Portable.

If you repay your mortgage early, or make an overpayment, you may have to pay an early repayment charge.

For full repayment, you will pay 3% of the outstanding balance in years 1 and 2% in year 2, plus a Closing Administration Fee (currently £100).

For overpayments, you will pay 3% on any amount exceeding your 20% limit in year 1 and 2% in year 2.

  • Adminstration Fee £125.
  • Valuation Fee (scale).
  • Completion Fee £75.

Residential Lending Criteria and Information

Loan:

Size: Minimum £50,000, Maximum £500,000.
Term: Minimum 5 years, Maximum 40 years.

Property:

Minimum Value: £100,000.


Location:
Must be in England or Wales.

Applicant:

Age: Minimum 18, no maximum subject to income in retirement.

Income:

Household income must be at least £20,000.

No minimum period of employment, but must have passed probation, or have 3 years self-employment history.

The amount we will lend will depend on the value of the property and a calculation based on income and expenditure. As a guide, we will take gross annual income and then apply a deduction for the annual amount paid towards any existing debts or other financial commitments. We apply the following multipliers to the amount remaining:

Income After Deductions

Sole Borrower

Joint Borrowers

£20,000-£50,000

4.25x

4.25x

Over £50,001

4.5x

4.5x

These multiples are for guidance only and do not guarantee that we will lend the amount indicated. We will carry out a full assessment of your income and expenditure to ensure that you can afford your mortgage both now and in the future.

Underwriting:

We take a flexible approach to underwriting and will consider each case on its merits. We do not credit score. The actual rate and APRC for your case will depend on your circumstances and our assessment of the risk.

How to apply

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