3. Apply for a Mortgage in Principle
A mortgage in principle is a statement from a lender saying they’re willing to lend you a certain amount, based on your income, expenses, and credit history.
Obtaining a mortgage in principle for shared ownership is an important step, as it shows us that you’re financially prepared and serious about purchasing your chosen shared ownership property. While it’s a strong indication that you may be able to proceed, it’s not a guarantee - further checks, including full credit assessments, will still take place later in the process. However, having a mortgage in principle can help strengthen your application and speed things up, giving you greater confidence when reserving your dream home.
Most lenders will offer a mortgage in principle free of charge, and it typically remains valid for between 60 and 90 days. Having this agreement ready early on ensures you can move quickly once you've found the right home through us.
Starting your shared ownership journey with a mortgage in principle gives you a clear understanding of your budget, simplifies the buying process, and demonstrates that you're a committed and ready buyer.
You can use our budget calculator to give you an idea of what the monthly costs for a shared ownership home would be. This will help you to decide what share you can buy and what share will allow you to live comfortably.
Working out your monthly outgoings can also help you to understand how much you can afford to pay and the share of the property you can afford to purchase.