Help to buy or shared ownership?

Leanne_green

Hi, I've got a question that I was wondering if anyone can give me advice on?

I currently own a property with my ex-partner. We have now separated, and we are currently going through the process of taking my name of the mortgage deeds, and my ex-partner will remortgage the property.

I am getting my share of equity from the house, so I will have a substantial deposit for something new. However, I'm not quite sure which route to take to now get a new property. I do not earn a massive amount, however I will have a substantial deposit for somewhere, I think it will just be the monthly repayments that I will struggle with if too high. I'm just not sure whether the help to buy scheme or shared ownership is the best option for me? I'd like to own my own property again, so renting is not an option.

Any advice?

Thank you

Pixie5740

Of course renting is an option, you might not want to but it is certainly an option. If you go down the shared ownership route then you will be renting part of your home, you'll pay both rent and a mortgage. If you think you'll struggle with mortgage repayments do you realistically think you can afford a part rent, part mortgage arrangement or would you have enough money to buy part of your home outright and rent the rest?

As for HTB, is it the equity loan you are thinking about using? Is it a new build property you want to buy? What would be your exit plan for repaying the equity loan?

You haven't given enough information to say whether shared ownership or HTB is the better option for you. Can you actually afford to do either in the area you live using a combination of your income and your savings?

My advice is, if you haven't done so already, go and see a mortgage broker to work out exactly what you can afford.

saajan_12

WAY more info needed to have a chance at helpful replies..
- how much equity+savings will you have?
- how much can you afford monthly? what is your max mortgage (try some mortgage calculators)
- where are you looking to live?
- how much is a 1/2/3 bed house/flat there?

magicpork

affordability is probably the most important factor in deciding your best option.. shared ownership is generally much more affordable than HTB-EL. You'll want to take a look at properties you like and see if you can afford them.