Shared Equity Mortgages

What is a Shared Equity Mortgage?
A shared equity mortgage enables the borrower to trade a lower repayment on the mortgage in return for the lender taking an equity stake in the property.

An example of a Shared Equity Mortgage would be as follows:

The lender advances a proportion of the loan at a normal interest rate. The remainder of the loan is charged at a lower rate of interest or even zero interest. Total repayment is lower than would otherwise be the case for a conventional loan. The lender takes an equity stake in the property, which can be released on sale