You are here: Home - Government Help - Guides -

Guide to shared equity

Written by:
Not to be confused with 'shared ownership', with a 'shared equity' scheme the Government provides the borrower with an 'equity loan'.
Guide to shared equity

Schemes such as Help to Buy, Newbuy and The Armed Forces Home Ownership Scheme can be described as shared equity, beacuse in each case the buildre and/or Government provides an ‘equity loan’on the purchase of the property, which the borrower backs up with a conventional mortgage.

In some cases, such as with Help to Buy, the loan is interest-free for the first five years.

Generally speaking, the Government or other provider of the loan will subsequently share in a proportional increase (and sometimes decrease) in the value of the property.

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Speak to an adviser

Could you benefit from impartial, free advice?

Your Mortgage Guides

Help for homebuyers

Download our handy guide for homebuyers, brought to you in association with Barclays

Read More >

Is your mortgage fully protected with critical illness?

For a free quote or to speak with an insurance expert call 0800 1218744
Read previous post:
Guide to shared ownership

Shared ownership schemes allow people to buy a portion of a property from a housing association and to pay rent...