Part buy Part Rent property Mortgage

Phyzelda

Unfortunately, it is the only way me and my partner can afford to get our foot on the property ladder.

I know people who are currently in a part buy part rent flat, and it's worked for them too!!

My partner is a retained Fire fighter and therefore we need to live near to the Fire station, and with property prices like they are where we live, we have no choice!!

DesertFlyer

CloudCuckooLand wrote: »

"When you refinance" etc.

That might be your plan, plus there are others who plan to overpay immediately, fine. But I'd bet most who need to use SO are doing so at the very edge of affordability already, so re-financing is going to barely maintain the status quo, never mind be able to take on extra equity quickly, as Interest Rates going up are very likely to end up with re-mortgaging pain for many.


"As time goes on, salaries increase you can afford more equity" etc.

Sounds find, if you say it quick. But in reality, as salaries increase, families are started, people need to have a bigger house, etc which eats up the increase in salary before you make the equity step up.

That's all valid however in those circumstances Shared Ownership is not the suitable entry step to the property ladder. A mouseholding might be more suitable. This does not mean that SO is a scam as was previosuly implied by a poster, nor does it mean that it is a "bad" method of getting in to property. On the contrary for some it is excellent.

CloudCuckooLand wrote: »

"Some countries have 100 year mortgages"

Yes, like Japan where just Tokyo city centre was valued at something like more than the whole of California, until the big bust came and upto 70% loss in values.

Presuming this is accurate this doesn't mean that Shared Ownership inflates property prices. In fact I'd be willing to bet that the proportion of properties sold through SO is so low it barely has any impact at all.

But when all is said and done that is just my opinion. Phyzelda needs to look at the suitability of shared ownership based upon current income and future expectations.

BTW Phyzelda Northern Bank are doing 3.99% 90% LTV I believe.