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October 7, 2021

Shared Ownership Mortgage Agreement In Principle

The housing company retains the remaining portion that the buyer rents to the association. This system offers qualified buyers the opportunity to get a foot on the ladder when real estate is on the open market outside the budget, or to buy in a more expensive and central location. If the house was sold in the table below for £420,000, you will receive £252,000 (60 %, from your mortgage and cash deposit) and pay £168,000 for the loan (40 %). You should pay off your mortgage with your share of the money. You can show a seller or housing company that you can most likely get the necessary mortgage and therefore be a serious buyer. Some housing companies require you to make up for an agreement in principle before offering you real estate.