Shared ownership mortgages

[Laf90]

Hi, I'm not sure if anyone can help. I find mortgages incredibly confusing and difficult to follow. I have a shared ownership mortgage which I have had for 8 years. I got this on a single income of £30,000 and an £11,000 deposit. The house value was £196000 and I bought a 40% share. The house is now valued at £250,000. Since buying the house I've met and married my husband and the house is too small for our needs. Our joint income is only £60,000 and we are looking at a bigger shared ownership home for £350,000. We would want a 40% share again. How does it work? Is it even doable? How much money would I get out from my current home to take over to another home.

Not a financial advisor but have done shared ownership twice.

So you will be entitled to 40% so £100,000 but minus any mortgage you currently owe so assuming your original share was £76,000 which was made of your £11,000 deposit and £65,000 mortgage that should give you at minimum £35,000 but probably a bit more as your mortgage will be less than £65,000 as you have been making payments to clear the loan.

You will be buying 40% of new home so will need £140,000 made up of mortgage and deposit. If you take off the £35,000 from your current home that means you need £95,000 from mortgage which on a combined salary of £60,000 is absolutely fine.

Lots of people have 3 X household income for mortgage so up to £180,000 but as this is SO need to take into account cost of rent share and service charge

In your shoes I would definitely push up to 50% if the sums add up and you feel you can afford it

Hope that helps

Sorry no idea how to edit but it's not £95,000 mortgage you will need it's £105,000. Sorry got distracted by poorly child

That's great thank you for that. It's such a minefield alot of the information out there applies to fully mortgaged homes so this is really useful