Help to buy, shared ownership or delusional?

Bahnhof

Hello all. My apologies if this message is not well written but I am using the worlds ropiest laptop and the keys are a bit temperamental.

I am hoping someone could tell me if I am being delusional in my hopes around getting a mortgage and give me a nudge in the right direction as to what scheme would suit me best.

I have a deposit of 10k and earn about 50k a year and want to buy a house which is on the market for 235k. There seem to be two options available, one of which is shared ownership which offers a 35% share for 92250. Would my 10k be enough for a deposit to cover that scheme?

Alternatively would help to buy be any more suitable? I have concerns as to whether I would qualify for a mortgage on the remaining equity. I have no credit issues, only a small outstanding debt to repay for my car which will be gone in the next 6 months and costs me about 250 a month.

Thank you in advance for any help.

ACG

Income wise you should be fine.
Help to buy requires you to have a 5% deposit - your £1,750 short. Plus you would need fees for the valuation, solicitors and stamp duty.

I think all in all you are probably around £5k shy of what you would need to buy it outright on a 95% mortgage.

With regards to shared ownership, help to buy 1 etc I dont know enough about them so will leave it to someone more experienced than myself.

Loopy28

Shared ownership-you just need to have the relevant deposit for the part that you are buying. So on the shared ownership you could put down just short of 9300k and that would be 10% and give you a 90% LTV rate.

My first property was shared ownership and that is what I did, not all lenders do shared ownership but I know Santander, Leeds BS and a few others do.

fairy_lights

A 35% share for 92250 doesn't look like a good deal at all. That's a lot of money for not very much house, have you looked in to how much rent you would be paying and how easy it would be to sell on?
Can't you continue to save for a deposit until you've got at least 5%?

Bahnhof

Sorry. You are right. I made my typo there as keyboard kept refusing to type properly and in my frustration I wrote the wrong figure. It is 82250 for a 35% share.

OneEngland

If I was in you position, I would look for a New build property and take advantage of Help to Buy 1. You would need a minimum of 5% deposit but with up to 20% equity loan which is interest free for 5yrs (other conditions to be consider too) You can get some fantastic rates as with some lenders you will have the choice of 75% LTV products, some 2 year rates as low as 1.89%.