Short term lender sees hike in shared ownership loans

Short term lender sees hike in shared ownership loans


Shared ownership loans are reportedly becoming more popular, with Cheshire Mortgage Corporation announcing that lending on shared ownership properties accounted for 33% of its business in the second quarter of 2009, up by 16% on the same period for 2008. 

The lender says that increased awareness of shared ownership resulting from media coverage of the government’s Homebuy schemes is partially responsible, and has contributed to growth in this market. 


Additionally, many house builders are eager to fill completed developments by offering shared ownership deals, but there is reluctance on the part of mainstream lenders to provide the necessary funding. 


Gary Bailey, Director at Cheshire Mortgage Corporation said: “A lot of high street lenders are reluctant to get involved in shared ownership lending but the fact is that there is a growing demand for these products. There are increasing numbers of first time buyers for whom shared ownership schemes are the only way they can hope to get a foot on the housing ladder and contrary to what many seem to think, shared ownership does not have to equal sub-prime.


“Cheshire Mortgage Corporation is proud to be unique in the market by supporting intermediaries and home buyers with a shared ownership product that allows the client to borrow up to 100% of their share. The high streets don’t offer this type of product, making us the only lender that can help shared ownership clients who need to borrow at this level. We are happy to consider any shared ownership cases that fit our criteria and will be pleased to discuss our packaging requirements for shared ownership mortgages with existing or new brokers.”


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