To ask if anyone has bought a flat using the shared ownership/HTB scheme?

[Cchick]

Hi all,

I don't post here often (I tend to lurk) but could really do with some advice from those with experience.

I am looking to get on the property ladder this year/early next. And, realistically, my options are to use the shared ownership ("SO") scheme or the help to buy scheme ("HTB") .

With the SO scheme, I could afford to start the process now, though I would be buying off plan, because there are no viewings due to coronavirus. I'd probably start with 30-40% share and hope to reach 100% in the next 2 years. I can get a 1 bed flat I really like using this scheme.

With the HTB scheme, I'd have to wait until the end of the year when I have saved a larger deposit to top up the mortgage I can get (I'll be buying alone). However, this means I continue renting until the end of the year (or longer if I can't find anything I like then).

Ladir, what would you do? SO or HTB or Keep saving(+renting) for another 3 years until I can buy without schemes?

Thanks in advance!

I would wait. I suspect house prices are going to fall..

I'd would personally wait til I had a bigger deposit and could have my home non-shared ownership for two reasons:

#1: interest rates are great right now and likely to still be great at the end of the year, so it could be financially better to pay low interest on a mortgage for a property you own than rent on the shared portion of it (you would need to work out the sums though)

#2: Realistically there are likely to be some people who do not weather this economic climate well and need to sell potentially at a reduced rate just for a fast sale later this year (I do NOT wish this situation on anyone, but it's likely to happen) so pragmatically I would wait and see what happens for the sake of a few months

HTB is generally newbuild properties which tend to be overpriced.

I did shared ownership and while it helped me get a foot on the property ladder it is not cheaper than buying 100% as you pay rent on the percentage you don't own.