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First time buyer here (well, would like to be)
As a single person who's only on 17k a year, I can't afford a house or even a flat by myself. I can't see what's so great about shared mortgages either. You pay even more then you would on a mortgage, and you own less.
What makes even less sense, is if we can be expected to pay that much for a shared mortgage. Why aren't we offered more when we apply for a normal morgage?
Is it even worth owning a house any more? :confused:
I'm very suspicious of shared mortgages too; down the road from me yet another housing estate is being built. Shared mortages are being offered, and £92,000 will get you a wopping 40% of a house.
I also don't understand that since with rent + mortgage = more payments at the end of each month. How can they expect you to pay back that, but are unwilling to let you pay that much back on a full mortage?
I don't see how leaving new home owners with even less money is helping them. When I look at America and how much less money their lives sap out of them, I do have to wonder why we have so little here.
I'd like to know more about this too. :)
some of them only charge a pepper corn rent on their bit.. theres one at bishops tachbrook like that, but they usually want you to have some connection with the village.
I have a bit more info on the so called 'affordable housing' just down the road from me. Their portfolio of the houses arrived the other day, and to start with you MUST be on a minimum of £29,500 a year to qualify for a house. This will get you 40% of the property, and you have to pay 2% rent on what you don't own. With the prices of the actual houses starting at £230,000 and going up ti £257,000. So I think that works out you'd be paying £800 a month!
I don't know ANYONE (including myself) who is looking to buy their first house, and even comes close to being able to afford that. I'm struggling to understand how this can be affordable housing, or how it helps first time buyers in any way.
i'd need a mortgage to raise a deposit....:(
As I've stated in another thread, my wife and myself live in a Shared Ownership property in Warwick. We bought a 50% share in a house.
Shared Ownership is great in that it lets you get onto the property ladder - the house we're in was valued at 140K and there's no way we could afford that on WCC wages!
Banks would not lend us that kind of money, however, every month we pay out as if we had got a mortgage for that amount.
We pay our 50% mortgage share and then we have to pay rent to Orbit for the other 50% share. So, we pay out loads...but on the flipside, we'd still be renting. So, all in all, it's a great idea. Just remember that it'll cost you!
I just can't see any major benefit to paying all that extra money just so I can say I own my own house. Don't get me wrong, I'd love to own my own place but I can't afford a normal mortgage and I certainly can't afford a shared mortgage. It all seems completely potty to me. :(
Shared ownership - its a bit of a minefield as you would expect from a government initative- i agree with all of the above posts - It is a very expensive scheme and is hardly "affordable" . you will often end up paying as much as a mortgage . However , it is still a step on to the ladder . I am slightly involved in property and have done alot of research into past market trends . For the last 30 years property prices have doubled in price every ten years , in some instances less-8-9 years !. Property is a good bet these days - If you go into a bank and ask them to lend you a 100k to invest in their banks shares they would laugh you out of the door , if you asked for a 100k to invest in a flat/house they are all ears- this is because they know the market trends and they know that the prices will continue to rise. A house owner would have walked away if you told them the house they owned that cost 100k in 1996 would be worth 200k in 2006 - but its happened .So although the government get rich from this scheme , it is often the only way to get on board without raising a huge deposit. You shouldnt expect to make huge equity on your house/flat , but your on the ladder and you will make SOME money .
It can be cheaper to get a bank loan to cover the deposit . the interest rate can be a few percent higher but you own the house ouright and the increase in equity will be 100% yours . Im no financial adviser ,but im young and i have bought property so im just trying to offer a bit of my experience .Hope some of it is usefull ---
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