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  • FIRST POST
    • Bobby303
    • By Bobby303 18th May 17, 9:47 PM
    • 3Posts
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    Bobby303
    Deposit on shared ownership?
    • #1
    • 18th May 17, 9:47 PM
    Deposit on shared ownership? 18th May 17 at 9:47 PM
    Hi guys

    I'm a first time buyer and after talking to my bank and seeing what they are willing to lend me for a mortgage I'm interested in finding out a little more about shared ownership. As a single person on not a huge wage I am only able to get a small mortgage, however I can luckily afford quite a high deposit, due to savings.

    Now for an example...if I attempt to make an offer on a flat that, say, requires an 80k mortgage based on a 200k overall price, shared ownership, could I put down 50k deposit and take a 30k mortgage? Excuse me if this is a simple/silly question. What I'm basically asking is can you still offer quite a big deposit on shared ownerships?
    I realise I'd be paying rent and service charge on the rest of the house but wouldn't this make my mortgage repayments quite a bit lower at least?

    Thanks for any help or advice
Page 1
    • Cakeguts
    • By Cakeguts 18th May 17, 10:43 PM
    • 2,282 Posts
    • 2,876 Thanks
    Cakeguts
    • #2
    • 18th May 17, 10:43 PM
    • #2
    • 18th May 17, 10:43 PM
    You have to find out if you are eligible for shared ownership first.
    • Bobby303
    • By Bobby303 19th May 17, 6:45 AM
    • 3 Posts
    • 0 Thanks
    Bobby303
    • #3
    • 19th May 17, 6:45 AM
    • #3
    • 19th May 17, 6:45 AM
    I think I am? Live in South London, first time buyer and earn less than 80k. Are those the requirements. Just for arguments sake and I do qualify is what I've described possible/allowed?
    • LadyL2013
    • By LadyL2013 19th May 17, 9:39 AM
    • 104 Posts
    • 48 Thanks
    LadyL2013
    • #4
    • 19th May 17, 9:39 AM
    • #4
    • 19th May 17, 9:39 AM
    I think I am? Live in South London, first time buyer and earn less than 80k. Are those the requirements. Just for arguments sake and I do qualify is what I've described possible/allowed?
    Originally posted by Bobby303




    Yes, you can put however much of your deposit forward o decrease the mortgage you apply for.
    • Bobby303
    • By Bobby303 19th May 17, 10:06 AM
    • 3 Posts
    • 0 Thanks
    Bobby303
    • #5
    • 19th May 17, 10:06 AM
    • #5
    • 19th May 17, 10:06 AM
    Thanks LadyL2013. So I am right in thinking that if I paid quite a high deposit on the percent I'm buying, that would keep the mortgage repayments quite low....thus after paying the rent and service charge too...it could potentially help me save more so I can buy a bigger and bigger percent of the property?
    • LadyL2013
    • By LadyL2013 19th May 17, 12:03 PM
    • 104 Posts
    • 48 Thanks
    LadyL2013
    • #6
    • 19th May 17, 12:03 PM
    • #6
    • 19th May 17, 12:03 PM
    Thanks LadyL2013. So I am right in thinking that if I paid quite a high deposit on the percent I'm buying, that would keep the mortgage repayments quite low....thus after paying the rent and service charge too...it could potentially help me save more so I can buy a bigger and bigger percent of the property?
    Originally posted by Bobby303

    You have to take what you'll be paying in rent into consideration too. It's worth sitting down with the finance team to work what deposit and what mortgage would get you the cheapest monthly payments. But in theory, yes.
    • aneary
    • By aneary 19th May 17, 12:11 PM
    • 64 Posts
    • 44 Thanks
    aneary
    • #7
    • 19th May 17, 12:11 PM
    • #7
    • 19th May 17, 12:11 PM
    Look at what happens when you sell, if you have a large deposit it may be worth buying a bigger percentage of the property.
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