half buy half rent

crispeater

hi,

i currently have a flat on the market and with any luck when it sells i will have a deposit of near on 50k.
im wanting to buy a property of about 160k but as i will be doing this on my own AND expecting my 2nd child i wont be able to afford the repayments.
i know that if i do an interest only one for a couple of years while im on maternity leave i will 'just' be able to afford the payments. but when i return to work i will be returning part time and will only clear around 850pound a month. what i dont want to do is spend it all on the mortgage.

i have heard on the radio about a half rent half buy mortgage but cant find out any information on it. for those that have never heard of it from what i can gather you purchase half of the property and the (i suppose) morgage lenders purchase the other half. you pay your half of the mortgage and pay rent to the lenders.. sounds daft but i just wanna see if it will be any good to me..

thanks in advance

tina

Joe_Bloggs

A search on 'Shared Ownership' may yield productive results. Many housing associations run these schemes. You can try those in your current and surrounding areas for details. I have no idea as to their supply/demand acceptance criterea.
J_B.

herbiesjp

The shared ownerhsip is as JB says normally via housing associations.

You purchase a percentage of the property via a mortgage, and the balance is hel dby the housing association.

You have two monthly costs - the mortgage to the lender and the rent to the housing association for the portion they still own.

crispeater

thank you i didnt realise it was called a shared ownership

Anya

If you don't want to buy a housing association house, but want to choose one by yourself you need to enquire about a DIYSO scheme rather than a simple shared ownership. This basically stands for "Do It Yourself Shared Ownership" and it allows you to pick whatever house you want. Your local housing association should be able to advise you on this or Citizen's Advice is always worth a shot.