
Remortgaging a Shared Ownership home
In the right situation, remortgaging can be a healthy choice for your purse. It could allow you to secure better interest rates, reduce monthly payments, or release equity.
If you own a Shared Ownership home, the process of remortgaging involves specific considerations. This post will walk you through the steps and key points you need to know, to make your own decision on whether remortgaging is the right choice for you.
Understanding Shared Ownership remortgaging
Shared ownership allows you to buy a portion of a property, usually between 25% and 75%, and pay rent on the remaining share. Remortgaging a Shared Ownership home involves changing the mortgage on the part you own. This could be to get a better deal, raise additional funds, or increase your ownership share.
Step-by-step remortgaging process

1. Review your current mortgage and financial situation (1-2 weeks)
Before considering remortgaging, review your current mortgage terms and your financial situation. Check if there are any early repayment charges or penalties for leaving your existing mortgage early. Assess your credit score, income, and any changes in your financial circumstances.

2. Research lenders and mortgage deals
(2-4 weeks)
Not all lenders offer remortgages for Shared Ownership properties, so it’s crucial to research and find those who do. Some deals may have better interest rates, lower fees, or more favourable terms. It might be helpful to consult a mortgage advisor who specialises in Shared Ownership to navigate the options available.

3. Obtain permission from your housing association (1-2 weeks)
You’ll need consent from your housing association before proceeding with the remortgage. Contact them to understand their specific requirements and any associated fees. This step is essential because the housing association has an interest in the property due to the Shared Ownership agreement.

4. Apply for the new mortgage (2-4 weeks)
Once you’ve chosen a suitable mortgage deal and obtained permission from your housing association, you can apply for the new mortgage. The application process is similar to applying for your initial mortgage and will require documentation such as proof of income, identification, and details of your current mortgage.
The lender will also conduct a property valuation to make sure it meets their lending criteria. This can take a couple of weeks.

5. Legal work and finalising the remortgage (4-8 weeks)
Remortgaging involves legal work to transfer the mortgage from your current lender to the new one. You’ll need to instruct a solicitor or conveyancer to handle this process. They’ll manage the legal aspects, including:
– Liaising with your current lender to settle the existing mortgage.
– Registering the new mortgage with the Land Registry.
– Ensuring all conditions set by the housing association are met.
This stage can take a few weeks, depending on the complexity of your situation and the efficiency of your solicitor.

6. Completion of the remortgage
(1-2 weeks)
Once all legal work is complete, the remortgage will be finalised. The new lender will pay off the existing mortgage, and you’ll begin making payments under the new terms. If you’ve opted to increase your ownership share through the remortgage, this will also be reflected in your new financial commitments.
Remortgage considerations and tips
- Early Repayment Charges: Be aware of any early repayment charges from your existing mortgage. These fees can impact the overall benefit of remortgaging.
- Mortgage Fees: Factor in the costs associated with remortgaging, such as arrangement fees, valuation fees, and legal fees.
- Financial Benefits: Make sure that the new mortgage terms offer a clear financial benefit, whether through lower interest rates, reduced monthly payments, or additional funds for home improvements or other needs.
Get the right mortgage price for your Shared Ownership home
Remortgaging a Shared Ownership home can be a great move to improve your financial situation or increase your ownership stake. But, it’s good to understand all the implications outlined above to know whether you’re making the right decision.
Legal & General Affordable Homes is here to support you on all things Shared Ownership. For further information and guidance, visit our FAQs or contact our team.