Shared-Equity Mortgages
Shared Equity Mortgage Advice in Scotland
Shared-equity schemes can help eligible buyers purchase a home while another organisation retains a financial interest in the property. The mortgage, scheme rules and legal agreement all need to work together.
Anderson Mortgages advises buyers and existing owners across Scotland on mortgages connected with shared equity and shared ownership. Your adviser will explain the mortgage considerations, work alongside the scheme administrator and solicitor and remain your main point of contact for the mortgage application.
Understand the Arrangement
How Does Shared Equity Work?
With shared equity, you normally own the home and take a mortgage for the share of the purchase price you are funding. The Scottish Government or another scheme provider holds an equity interest in the property under a separate legal agreement.
That interest is generally linked to a percentage of the property's value rather than a conventional monthly loan repayment. The amount due when you sell or increase your share can therefore change as the property's value changes.
Each programme has its own eligibility, property, price and application requirements. Scheme availability can change, so current rules must be checked before you make plans or commitments.
Advice for Buyers and Owners
How Can We Help?
Review Mortgage Affordability
Understand how a lender may assess your income, commitments, deposit and the share of the property you plan to fund.
Consider Current Schemes
Discuss whether a current Scottish shared-equity route may be relevant before you begin a full application.
Prepare the Mortgage Application
Identify the information needed by the lender and keep the mortgage work aligned with the scheme process.
Remortgage an Existing Property
Review mortgage options where you already own a home through a shared-equity arrangement.
Increase Your Equity Share
Discuss the mortgage implications if you want to buy some or all of the remaining equity, subject to the agreement's rules.
Plan a Sale or Other Change
Consider the mortgage position alongside the valuation, scheme administration and legal steps required for the change.
Current Scottish Routes
Which Buying Schemes May Be Relevant?
Current Scottish support can include the Low-cost Initiative for First Time Buyers, known as LIFT. Its routes include the Open Market Shared Equity scheme for eligible purchases on the open market and New Supply Shared Equity for certain new homes provided through councils or housing associations.
The First Homes Fund may also support eligible first-time buyers, while shared ownership allows a buyer to purchase a share of a property and pay an occupancy charge on the part retained by a housing association.
These arrangements are not interchangeable. Eligibility, funding, price limits and availability must be confirmed through the relevant official scheme and administrator. We can advise on the mortgage, but the administrator and your solicitor remain responsible for their parts of the process.
Existing Shared-Equity Owners
Remortgaging, Selling or Increasing Your Share
An existing owner may want to change mortgage lender, borrow to increase their equity share or sell the property. The shared-equity agreement affects what can happen and which approvals, valuations and legal documents are needed.
For a remortgage, you will normally need to contact the organisation that administered the original purchase. A new lender may require a ranking agreement or other documentation confirming how its security relates to the scheme provider's interest.
If you buy a larger share, the amount and minimum increase can depend on the specific agreement. Some properties also contain a golden-share provision that limits the maximum share an owner can acquire. Your solicitor and scheme administrator should confirm the legal position and associated costs.
Shared Equity or Shared Ownership
Understanding the Difference
Shared Equity
You normally own the whole property, but the scheme provider retains a financial interest secured through a legal agreement. There is generally no occupancy charge for that interest, although repayment will be due when required by the scheme.
Shared Ownership
You purchase an agreed share and a housing association retains the remainder. An occupancy charge is normally paid on the part you do not own. Mortgage availability and the process depend on the housing association's arrangement and lender criteria.
Shared-Equity Questions
Common Questions About These Mortgages
Customer Reviews
What Our Customers Say
Discuss Your Shared-Equity Mortgage
Speak to an Adviser About Your Circumstances
Tell us whether you are planning a purchase or already own a shared-equity or shared-ownership property. One of our advisers will contact you personally and promptly to discuss the mortgage position.
There may be a fee for arranging a mortgage and the precise amount will depend on your circumstances. This will typically be £295.
Any fee and when it becomes payable will be confirmed in your Terms of Business before you proceed. No fee is payable if your mortgage does not complete.
Your home may be repossessed if you do not keep up repayments on your mortgage.