by Mark Johnston
Share to Buy is a specialist mortgage lender that arranges home loans for people looking to share the cost of a new home with a friend, family member or even a housing association on a shared ownership basis (part rental , part purchase).
Sharing a mortgage is now becoming a very real alternative for many up and down the UK. First time and next time buyers are struggling to get onto the property ladder as home finance with a minimal or no deposit is very hard to get.
Share to Buy opened to business back in July 2004 to try and assist first time buyers onto the UK property market. They offered mortgages through Britannia to people looking to purchase a property on a shared basis. This meant that groups of friends (up to 4 people) could club together to buy a home. The big benefit was that their joint incomes could be taken into account enabling flat mates, and friends to become joint owners. They also provided legal agreements to cover a number of individuals purchasing a house together.
Ever since 2004, Share to Buy have built on their unique opportunity to become a leading specialist mortgage provider which gives first time buyers a viable alternative to finance their new home.
Buy to Share is based in North London but operates mainly over the phone and via the internet to provide a greater reach to its many customers. Although they are privately owned they are not tied into any one company and source their mortgages from across the industry enabling them to offer exclusive deals that are not available anywhere else. That said, they are partners with Britannia who are part of the Co-operative bank. Britannia do have an excellent track record of high quality customer service and social awareness that they say enables them to understand the problems faced by first time buyers trying to get their foot on the UK property ladder.
The interesting thing about Share to Buy is that do say they don’t charge any fees and are very clear about the fact that they don’t tie their mortgage holders into their deals. This means that if borrowers wish to move lenders they can do so without incurring any early redemption fees.
Share to Buy offer mortgages up to 90% loan to value (LTV) which is rare in the current climate. They currently have two fee free mortgages that are only available via their website. It’s refreshing to see that Share to Buy do not charge an arrangement fee, no valuation fees and there are no early repayment charges.
As with other providers, current rates vary on the size of the mortgage that borrowers have. The larger the deposit, the lower the rate and the great thing about buying a property with up to four other people is that raising a deposit is a lot easier when split between a few individuals.
Their 90% loan to value mortgage has a rate of 4.69% which tracks 0.45% above Britannia’s Standard Variable Rate (SVR) of 4.25% for the lifetime of the loan. The overall cost for comparison is 4.9% APR
The Their 85% loan to value version has a rate of 4.19% which tracks 0.05% below Britannia’s Standard Variable Rate (SVR) of 4.25% for the lifetime of the loan. The overall cost for comparison is 4.4% APR.
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