Shared equity schemes

claire2711

Is the % that you buy negotiable? Or does it depend on the area and company that organise the scheme?

Just wondering if they give you a designated % that you can own, or if there's any wiggle room

TIA x

kingstreet

Shared equity? FirstBuy or the new HTB scheme?

You own 100% of the property from the point of purchase.

The shared equity is a second charge loan of normally upto 20% of the value of the property at purchase. You get a 75% mortgage, 20% equity loan and put down a minimum 5% deposit.

You pay back 20% of the value of the property when you sell, regardless of whether that is higher or lower if the property has increased in value, or the value has fallen.

It's interest free for 5 years, with payments from year six onwards of 1.75% payable monthly. This increases each year in line with RPI + 1%pa. In year seven it's 1.86%, in year eight 1.97 and so on, assuming RPI at 6%.