It demonstrates how a part and part mortgage could allow shared ownership customers to buy out their housing association’s share entirely. Customers then exit the scheme and switch to full homeownership with Gen H.
A portion of a part and part mortgage is structured on an interest-only basis, helping to reduce the monthly payment and bridge the affordability gap that may have required the customer to use shared ownership in the first place.
They could switch to a part and part mortgage with just a 5% equity share in their property.
John Doughty, chapter managing director at Just Mortgages, said: “Shared ownership has been instrumental in helping more people realise their dream of homeownership. Its success can really be counted in the number of first-time buyers, single buyers, divorcees and even families that have finally been able to get on the ladder.”
Are your clients ready for the first Making Tax Digital reporting deadline?
Sponsored by BM Solutions
Tool to support advisers with data-driven decisions
The new calculator aims to help answer the challenges facing customers in staircasing and achieving full homeownership – particularly with the rise in property values.
Instead of staircasing with its associated costs and administration, customers are able to overpay on their new part and part mortgage to reduce their interest-only balance.
Customers can request to make overpayments from their Gen H dashboard and have them approved in minutes.
The interactive calculator supports Just Mortgages’ advisers in modelling the financial impact of stepping into full ownership versus remaining in shared ownership over time.
Just Mortgages has 32 dedicated new-build advisers across the UK and partnerships with leading developers, housing associations, introducers and lenders. Its newest venture was when Just Mortgages secured access to Gen H’s New Build Boost mortgage scheme.
Peter Docker, chief commercial officer at Gen H, commented: “For many long-term shared ownership households, property appreciation and salary growth has not directly translated into an ability to staircase. What is undoubtedly a great stepping stone into homeownership has in practice become a stumbling block towards full ownership.
“Our part and part criteria allows us to unlock that full ownership option for more households – effectively staircasing through overpayments all while avoiding legal fees, valuation costs and housing association sign-off in the process.
“With expert advice remaining an integral part of this process, it made absolute sense to partner with Just Mortgages – particularly given their significant footprint and clear expertise in the shared ownership space.
“Just Mortgages’ advisers will be able to combine their expert knowledge with our new interactive calculator to have better informed conversations with customers around their future options. We are really pleased to be working with Just Mortgages to create more full homeowners.”
Doughty added: “It certainly speaks to our expertise and experience in shared ownership and our reputation for quality advice that a lender like Gen H would trust us to lead on this proposition.
“It’s yet another example of the innovation Gen H is bringing to the new-build mortgage market to bridge gaps and increase access to homeownership. We’re really proud to extend our partnership with their tremendous team.”
