It noted that this is not surprising given the heightened affordability pressures in the region.
The CML is developing a dataset on the shared ownership sector to provide more information on lending in this area.
High value homes
It found that the majority of shared ownership borrowers are first-time buyers, who tend to stretch their purchasing power and buy higher valued properties than other first-time buyers. This is even the case when allowing for a different regional mix.
Like other first-time buyers, those purchasing a home under shared ownership are increasingly opting for repayment terms of longer than 25 years. In 2016, six out of 10 shared ownership first-time buyers chose to repay over a term of longer than 25 years.
Fixed rates are the most popular choice, and over half are still on a fixed rate, while other shared ownership borrowers have reverted to lenders’ variable rates.
Around 200,000 households in the UK currently live in shared ownership properties – a relatively small number compared to those in full owner-occupation, but still a significant number of borrowers. Lenders have 40,000 live shared ownership mortgages on their books.