Shared Ownership - Bigger deposit

compbren

Hi,

I'm a single 31 year old wannabe homeowner, working full time on the lower end of the pay scale. I've been looking at help to buy schemes and am curious about the shared ownership.

Fortunately I have built up a decent amount of savings (see sig) and house prices around here aren't too bad. However despite this I feel that I could have trouble buying on the open market and paying the mortgage off every month.

Which is why the shared ownership scheme appeals to me. But I'm just wondering, as I can't find any information, on the maximum deposit you're allowed to put down for it.

Say for example a house is 100k. I want to buy 75% so £75k. Deposit of £30k means that I'll need a mortgage of £45k and pay rent on the rest.

I'm wondering whether I'd be rejected due to having a bigger deposit (most guides just say you need a minimum of 10% of the share you want to own, nothing about maximum).

Is this feasible, or would I get told to go through the open market.

Thanks.

Sus59

It probably depends on the individual rules of the housing association that owns the freehold. Some do allow it. My daughter is in the process of buying a 25% share of a shared ownership flat with a large deposit (she has saved for 16 years) and no mortgage. Like you she is on a low income and therefore unable to buy on the open market. Her salary just stretches to paying the rent on the remainder of the property. Good luck.

rtho782

Put down a 10% deposit, get a mortgage with no overpayment charges, and pay the rest of your deposit off the mortgage after completion.

You will be paying more interest though.