Shared equity mortgages (including Help to Buy Equity Loan)

The maximum LTV we will currently consider lending on shared equity properties is 85% based on the full market.

The applicant(s) minimum equity share must be at least 25% and up to a maximum of 90% on initial purchase.

Builder cash incentives are acceptable for Shared Equity applications provided the loan and cash incentive together do not exceed 95% of the value of the applicant’s equity share being purchased.​

The following rules apply to shared equity properties:

• Equity loan repayment must be keyed to Mortgage Pro, using a 3% interest rate as a minimum (regardless of whether this is lower at the outset). Where the interest is higher at point of application, the higher percentage must be used.
• TSB must have first charge. The seller secures their interest by way of a second charge.
• The maximum equity share a builder or private company can retain is 25%.
• The applicant(s) must provide a minimum deposit of 5% of the full purchase price, by way of personal contribution (excluding any deposit provided by a builder or housing association).
• The mortgage must be on a repayment basis
• We do not allow any remortgage applications, where there is any element of debt consolidation.
• The default term for the equity loan is 25 years however normal criteria applies for the mortgage

Purchase Price in Excess of Valuation Figure

We are able to accept applications for the following schemes:

• Open Market Shared Equity (OMSE)/LIFT, which helps people buy a home on the open market
• New Supply Shared Equity (NSSE)/LIFT, which helps people buy a new-build home from a council or housing association.

Where the applicant is paying a purchase price higher than the valuation then see Mortgage Pro Hints & Tips on how to key.