In this brief guide, we are going to discuss the HSBC shared ownership mortgage and provide an answer on if HSBC has a shared ownership mortgage.

To answer the simple question:

Does HSBC do shared ownership mortgages?

As of today. No. HSBC does not offer shared ownership mortgages as of 21.06.2020. This could potentially change in the future but if you seek mortgage advice as most people do when getting a mortgage (in your case seeking a mortgage advisor with knowledge and experience of the shared ownership mortgages and scheme) then you will likely be offered a mortgage which is best for you and that may not necessarily be with HSBC, even if they did offer HSBC shared ownership mortgages.

What is the shared ownership scheme?

The shared ownership scheme is a first-time buyer scheme provided by the Government to help you get on the property ladder quicker. With shared you will essentially own part of the home and pay rent on the side you don’t own.

You can then stop paying rent by buying 100% of the shares in the property using a shared ownership mortgage.

To be eligible for Shared ownership properties then you will need to:

  • To have an annual maximum household income of £80,000 outside London
  • To have an annual income of £90,000 in London
  • To have a monthly income which is at least 65% more than the monthly cost of the shared ownership property you intend to purchase. This, of course, depends on the price of the property and how much you want to purchase(which will directly affect the rent you pay)

If you are thinking of getting on the property ladder then Our property ladder plan could be just what you need to gain a perspective of how lenders view you and then go on to plan your property ladder journey.

Other government schemes you could use

To get a mortgage these are the government schemes which may enable you to get a mortgage. You can check if you are eligible for these government schemes by using a government scheme eligibility calculator.

  • Lifetime ISA– gives you a government bonus of £1,000 if you save the maximum £4,000 a year.
  • Help to buy ISA– gives a maximum bonus us £3,000 if you save the maximum allowed of £12,000. Before you get either you should consider which is better. Lifetime ISA vs Help to buy ISA.
  • Help to buy equity loan- gives you up to 40% as a 5-year interest-free equity loan. You begin to pay interest at 1.75 % after the fifth year and 1% plus RPI for every year thereafter.
  • Shared ownership- You can buy between 25% to 75% of the property initially with a shared ownership mortgage and then buy more using a staircasing mortgage.
  • Armed forces help to buy- similar to the help to buy equity loan but specific for the armed forces personnel giving them an increased chance of acceptance.
  • Rent to buy- This is the right to buy scheme on which this guide is currently discussing. A different marketing name is just used. Watch out for this when shopping to avoid missing out on eligible properties due to confusion.
  • Right to buy- allows you to buy your home at a discount price.
  • Preserved right to buy- same as above.
  • Right to acquire- same as above.

Depending on where you live, you may also be able to take advantage of home buying schemes provided by your local council. Example: In Norwich, the local councils provide the Norwich home options scheme.

In this brief guide, we discussed the HSBC shared ownership mortgage and provided an answer on if HSBC has a shared ownership mortgage.

If you have any questions or comments please let us know.

John Bate

John has 22 years of experience in financial services. This spans across financial research, financial services (As a qualified mortgage broker and underwriter), financial trading and sales at global investment banks. While working as a publishing research analyst, he covered European bank credit and advised institutional clients on investment strategies at both JP Morgan and Societe Generale. John has passed all three levels of the CFA (Chartered Financial Analyst) programme.