Million Pound Housing on Minimum Wage ?

Graham_Devon

Think you are clutching at straws here to be honest.

For a start, it's hardly likely you will be able to use two schemes to "double down" as it were. I.e getting 20% off on a shared ownership place.

That's not to mention all the other assumptions about couples working 40+ hours a week each on minimum wage, and also having a massive deposit ready to go etc.

And it appears you haven't even considered the rent they would need to pay on the share they don't own, which would likely wipe them out.

ging84

thequant wrote: »

Thanks, obviously I was constructing extreme example at the top end of the bracket (assuming the schemes can be linked together, has there been any details if they can or can't)

The help to buy equity loan scheme and shared ownership already exist, and they can't be used together, there is nothing suggesting that will change, they are just increasing the maximum loan from 20% to 40% in london,
Shared ownership it not limited to a 50% share
There is an £830k house on right move right now avalible with a minimum share of 25%
http://www.rightmove.co.uk/new-homes-for-sale/property-54990200.html
£40k a year could just about get a mortgage on it, but you would still never qualify with that income, because there is rent on the other share which when you add even a cheap £200k mortgage the combined bill is likely to be over £40k a year, and when you add in council tax, it certainly would be.

thequant

ging84 wrote: »

The help to buy equity loan scheme and shared ownership already exist, and they can't be used together, there is nothing suggesting that will change, they are just increasing the maximum loan from 20% to 40% in london,
Shared ownership it not limited to a 50% share
There is an £830k house on right move right now avalible with a minimum share of 25%
http://www.rightmove.co.uk/new-homes-for-sale/property-54990200.html
£40k a year could just about get a mortgage on it, but you would still never qualify with that income, because there is rent on the other share which when you add even a cheap £200k mortgage the combined bill is likely to be over £40k a year, and when you add in council tax, it certainly would be.

There was also some changes to the rent element in todays announcement in that it will be capped to 3% of the remaining equity which also increases affordibility

Graham_Devon

thequant wrote: »

There was also some changes to the rent element in todays announcement in that it will be capped to 3% of the remaining equity which also increases affordibility

So only 2k a month for you example in rent then.