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how much shared ownership should I buy?
Options
nublue
Posts: 241 Forumite
Hi,
Ive just been allocated a shared ownership new build and the minimum purchase is 40%. I have a good deposit so i only need a small mortgage for this and it will be quite affordable.
I have the option to buy more, and 50% is within the realms of possibility for me without overstretching (it is only about £50 per month more expensive - for the cost of mortgage and rent each month). At the moment it is likely that I will be better off financially in the short term rather than the long term as I am a single parent with a 10 year old so will eventually lose tax credits.
However, in the back of my mind, I am thinking that it may be wiser to buy the minimum and overpay/save, in the expectation that house prices may fall and the mortgage rent for that extra 10% or more may be cheaper if I staircase once that happens? On the other hand, the house is on a beautiful waterside development, in an affluent area, within easy commute from the city centre, so I would expect house prices to hold pretty well comparatively to others within the city.
Opinions please?
Thanks :-)
Ive just been allocated a shared ownership new build and the minimum purchase is 40%. I have a good deposit so i only need a small mortgage for this and it will be quite affordable.
I have the option to buy more, and 50% is within the realms of possibility for me without overstretching (it is only about £50 per month more expensive - for the cost of mortgage and rent each month). At the moment it is likely that I will be better off financially in the short term rather than the long term as I am a single parent with a 10 year old so will eventually lose tax credits.
However, in the back of my mind, I am thinking that it may be wiser to buy the minimum and overpay/save, in the expectation that house prices may fall and the mortgage rent for that extra 10% or more may be cheaper if I staircase once that happens? On the other hand, the house is on a beautiful waterside development, in an affluent area, within easy commute from the city centre, so I would expect house prices to hold pretty well comparatively to others within the city.
Opinions please?
Thanks :-)
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