50% Share

[juneybean]

I'm looking at houses and the 50% share is in my "mortgage" range but what does it actually mean, presumably, I'm then paying my mortgage of X amount a month and then rent on top? So not actually affordable?

"With Shared Ownership you only need to raise a deposit for the share you are purchasing. You pay a mortgage only on the share you buy (25%-75% of the property value) and pay subsidised rent on the share you don't own. You can normally buy further shares until you own 100% of the property"

The above is from the Santander website explaining shared ownership mortgages.

They give an example of a £160,000 home. The Housing Association owns 75% (£120,000) and you own 25% (£40,000). You would put down £4,000 deposit (10% of your share) and have a mortgage of £36,000. You would pay the HA a subsidised rent on the 75% that they own.

The total cost is going to depend on which lender and which HA you go with. It has to be worth doing the maths as the subsidised rent may be a lot less than you think.

Thanks for your reply! In theory... it sounds an okay idea, you get a better house for less money, but I'm still going to be paying X amount for no reason whatsoever (the rent) hmm