Rent to buy Schemes and Shared Ownerships

[Arabellasmum]

Hello ladies,

Has anyone here recently bought a house using rent-to-buy or shared ownership as a first time buyer?

I'm trying to understand the pros and cons, and if perhaps, one would be better off saving up for a deposit and buying normally.

Thank you in advance x

We have just moved into our shared ownership property, getting onto the housing ladder in our area would have been impossible for us otherwise.

My mortgage advisor managed to get me a larger share than I was initially assessed for. None of my neighbours (we're a terrace of 5 new builds) managed to buy any more as they didn't use an independent advisor so went along with what they were assessed for.

We're very happy with the scheme. Every month money is paid off of my mortgage. I will inevitably end up paying rent into my old age, but it is an affordable rent and without a shared ownership option, I would be paying full market rent for the rest of my life. At least this way I have security, and there will hopefully be something to leave for DS when I'm gone.

One thing to bear in mind, I needed a specific shared ownership mortgage which cost slightly more in advisors fees to set up.

They are only really suitable for people who couldn’t afford to buy any other way. The disadvantages include the fact that you only own a certain percentage of the property-20% say or 30% maybe even 50% whereas you are liable for 100% of any maintenance or repair costs.

Thank you ladies. Your responses are very helpful.