Shared ownership schemes are provided through housing associations and allow you to buy a share (25% to 75% of the home’s value) and pay a small rent on the remaining share.
Benefits of Shared Ownership
- Allows more people to own a home, when they probably couldn’t otherwise.
- The overall cost per month is often cheaper than paying a full mortgage.
You can own the amount that suits you from 25% – 75% depending on the money you have available.
Can you afford the property?
You need to work out what you can afford to pay for a mortgage and rent per month in advance. You should ask yourself the following:
- Are you in a permanent job, and is it reasonably secure?
- Do you earn enough to pay off the mortgage, rent and any other responsibilities that you have?
- Would you be able to meet any increases in your monthly payments if mortgage interest rates and your rent were to go up?
- How much will you have to pay for your legal fees, disconnection and re-connection charges and removal costs?
- How would you pay your rent or mortgage if you were unable to work?
- Are there any hidden costs that you are unaware of?
Buying a property is a serious financial undertaking and anyone considering Shared Ownership should seek professional financial advice.