Discount Market Sale (DMS) scheme mortgages

30/07/2019
Discount Market Sale (DMS) scheme mortgages - i.e. mortgages suited to the DMS scheme - are less common than standard mortgages purely because the Government's National Planning Policy Framework for Housing, which establishes matters like funding parameters for low cost housing schemes run by local authorities, leaves the actual number of houses sold through the DMS scheme to the discretion of the local authorities themselves and this, in reality, is a very small number.

The fact is, however, that the DMS scheme is an excellent and underused one, described by many commentators as shared ownership without the rent: you can effectively buy a local authority or housing association or private developer's property (or one which has come about via collaboration between any of these) at a massive discount to market value and you own the whole property from the start.

You often have the option buy off the discount as well - thus making the property truly yours for when you come to sell - but otherwise, you must sell the property off for the same discount you were given and possibly to the original local authority involved.

That said, each individual DMS scheme is different in terms of eligibility and ongoing rules - you must check each one on a case-by-case basis - and the schemes are very hard to find.


This article examines:



Need a Discount Market Sale (DMS) Mortgage?

If you've been fortunate enough to locate a DMS property to buy, our experienced independent mortgage brokers can help you find just the right mortgage product for your needs according to the individual rules of your particular scheme.

* Access to whole of the market – Available Outside of Work Hours – No need for face-to-face meeting with mortgage advisor - Terms Apply


    1

    How do you find a Discount Market Sale (DMS) scheme in the first place?

No deception here - you might struggle to find a local authority which offers a DMS scheme.

And you must bear in mind that many councils will only sell the limited number of properties that they offer for this scheme to local residents or perhaps particular key workers.

That said, we've found Discount Market Sale schemes which are - or at least have - been operating in the following authorities:

  • London Borough of Hillingdon
  • London Borough of Barnet
  • London Borough of Ealing
  • London Borough of Tower Hamlets
  • London Borough of Hounslow
  • Cheshire East Council
  • City of York Council
  • Richmondshire Council
  • Allerdale Council

Hammersmith and Fulham has its own schemes, one of which, Council Shared Equity (click to find out more) has many similarities with DMS.

Failing that you simply have to check your own local authority to see if they run such a scheme - we've made this slightly easier for you:

just click on Find your Local Authority by entering a postcode to give yourself a start.

Once you've found this out, look for the housing department and research from there.

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    2

    What's your best strategy to get a mortgage should you find property through a DMS scheme which you are eligible for?

Quite simply, after you've established yourself as best as possible that you're eligible for a particular DMS scheme, then we strongly advise that you consult an independent mortgage broker about any discounted scale scheme. They can't 'work the impossible' in that if you're required to have lived in a particular borough for more than 10 years and plainly haven't, then they can't remove this obstacle, however they can make the best of many other situations in terms of getting you the best rates and conditions and most importantly helping you move from your current situation in as smooth a way as possible.


Need a Discount Market Sale (DMS) Mortgage?

If you've been fortunate enough to locate a DMS property to buy, our experienced independent mortgage brokers can help you find just the right mortgage product for your needs according to the individual rules of your particular scheme.

* Access to whole of the market – Available Outside of Work Hours – No need for face-to-face meeting with mortgage advisor - Terms Apply


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