Shared ownership houses (40% etc)

[GoingToBeLessRubbishAtLife]

What or who are they for? If you have enough money for rent plus mortgage, then don’t you have enough money for more mortgage?

Is their main selling point people who need more bedrooms for children but only have the funds for one bedroom?

I rent, but am starting to think about my options so I want to get it straight in my head whether it’s something I should look at or not.

I guess it’s if you haven’t got a huge deposit saved. It takes away the need for deposit

youre correct in that, the rent plus the mortgage is the same amount or sometimes more than the full mortgage would be

Combined the rent and mortgage could be same or more than 100% mortgage however it allows people who can only get a smaller mortgage to buy a larger property as only the mortgage element has the strict affordability critera, you just need to evidence you can afford both mortgage and rent.

Ok thanks both. So as I will have between a 10 - 20% deposit I should just look at buying normally.

Not necessarily. You'll likely be able to get a larger property. It depends if the 100% mortgage allows you to buy the type of home you need.

Rough example.

100% mortgage
If you earn 60k and 3 x 60 = 180,000 Plus 20k deposit = property value 200,000K

Same income and 180,000 mortgage and 20k deposit, buy into a 50% share = property value 400,00k

This is the thing that annoys me. I pay the same in rent and mortgage on my shared ownership 2 bed flat as I did on the mortgage on my 3 bed house. But because I own 30% I only needed the mortgage on 30%. It's stupid as I obviously can afford the payments as I've never missed one. But my salary was too low to get the mortgage on the house transferred over to me only.

Also check out the HA who will own the other half see what they are like

often S/O houses / flats can be in the worse spot on a estate

also if it’s a flat check out the lease / ground rent
the SO flat my son was buying fell through at the last minute because of the GR

My dd and partner are moving in to a shared ownership next month. I dont know the ins and outs but gather they have around 16k deposit and the house has just been built and is worth 280. I think they said mortgage/rent comes to around 900 a month but the length of mortgage is huge,like 40 years.
However,both have been living with me for 6 months to save and before that in a bedsit( own bathroom) which was £750 a month so they have jumped at this opportunity.
I've read about the pitfalls but was either save and buy a not so desirable house in the local town or go for a brand new 2 bed in a village,so fingers crossed they have made a good decision.