Help to buy

investm0ney

Hello,

Is it possible to get the 20% help to buy mortgage equity loan to help towards the deposit on a percentage share of a shared ownership property? Or is it not possible to make use of both schemes at once?

Many thanks

kingstreet

Nope. One or the other, not both.

You only need 5% deposit for shared ownership anyway.

csgohan4

Search for shared ownership on this forum. IMHO it is a scam

investm0ney

So say I bought 35% share of a property, I would only require a 5% deposit on that 35%? Do these mortgages have absolutely terrible rates, even when compared to an every day non-shared ownership 5% mortgage?

And I'm away that there are pitfalls with shared ownership. There seem to be a lot of horror stories out there and a lot of things that could go wrong. There also seem to be a lot of people who get on fine and benefit from them.

kingstreet

Yes. 5% of the share you are purshasing.

The rates for 95% newbuild shared ownership are on a par with other 95% rates, but you will have fewer options.

I did quotes yesterday for such a case. 4.29% fixed for two years and 4.95% fixed for five.

Verix

You can get a mortgage for 100% of the share if you are doing shared ownership. As has been said though it's help to buy or shared ownership.

investm0ney

Thanks all.

I'm hoping a reasonably priced small flat becomes available. Otherwise I might have to end up purchasing a portion of a new shared ownership flat. It's either that or renting, and now that I have a stable job for 3 years in the same area it seems criminal to continue wasting money on rent when I can dip my foot in the market for 3 years and build up some equity.

I did some maths using online calculators and I'll be £35k better off over 3 years for buying a £200,000 house with a 5% mortgage and the government's mortgage guarantee scheme as compared to renting a comparable property!

brit1234

Everyone knows I hate Shared Ownership with a passion and also believe it a complete scam to inflate prices for the builders. However if you are going to do this evil scheme look at getting a small share and overpaying on that share rather than stair casing and more debt. That way it keeps the majority of risk with builder/housing association and avoids all those extra fees.

theGrinch

brit1234 wrote: »

Everyone knows I hate Shared Ownership with a passion and also believe it a complete scam to inflate prices for the builders. However if you are going to do this evil scheme look at getting a small share and overpaying on that share rather than stair casing and more debt. That way it keeps the majority of risk with builder/housing association and avoids all those extra fees.

A little while ago I read in the Standard of a proud couple that managed to "buy" a million pound home with a £60k deposit on shared ownership.

If thats not inflationary then Im a dutch man.