Shared ownership question

[Whyyougottobeanonymous]

Hi ladies

I split with DDs father and had to move home with parents. It’s become very testing and I’m pretty keen to get us back on track with our own place again.

I only work part time and there’s no way I could afford a mortgage on my own. Especially not with the current rates and bills on top of that.

I looked at renting with the savings from selling our joint property but this would mean I’d throw away all of my life savings for a year on rent.

I’ve been looking into shared ownership - the thing that concerns me most is the mortgage, rent, and then on top of that the service charges.

for those who own a shared ownership property how do you find it? If anyone is a single mum can you also shed light on whether you find it affordable?

the only other option is that I look to move completely away from the area I’m in now to somewhere much more affordable. This does however mean leaving all friends and family behind.

I feel quite strongly that shared ownership is not the best option, and would do whatever I could do avoid it for myself personally.

Would your parents consider going on a mortgage with you? I know there are some products available where parents hold their savings as a semi collateral that means they aren’t named on the mortgage, but they are supporting your mortgage application, I know Lloyds were doing it a few years back but I’m not sure if they still are.

What are the ballpark figures you’re looking at? How much would your down payment be? What’s the value of the property and what is your salary?

@BleachedJumper

thanks for replying. I’m the same. I originally got a mortgage which was much harder in the first instance, because of that reason. I have always been unsure about shared ownership but I’m starting to think it may be my only option.

im trying to rely less on my parents help with this next step. They are retired and my mum is extremely helpful but when it comes to money she wouldn’t be willing to help out.

I currently have 10% of a 300k property but that’s no including solicitors and stamp duty. I earn 31k per annum if I was to go back to full time with condensed hours.

We have a shared ownership property with a company called Bromford, here's my break down if it helps to see;

40% share of a £265,000 house (semi detached 3 bedroom)

Mortgage is £500 per month
Rent is £405 per month (this includes service charge of £18 per month, and building insurance)

It was our only option to get onto the property ladder, and cheaper per month that the mortgage costs for a similar property.

We will look to move in the next few years and leave the shared ownership scheme, as the rent does go up year. We have been there 18months and the rent has gone from £385 to £405 so not a huge increase, but i dread to think how much it will be in 5 years say.

In good news, our neighbours are selling next door and its valued at £10,000 more than brought for last year.