shared ownership for dummies? :)

PRINCESSX87

Hi there,

Looking for a little bit of information if you guys & girls could help

My husband & I - Are looking to join the property ladder. Looking realistically, We only have two options, 1) Trying to get a council home, 2) Shared Ownership.

Problem is, Chances of us getting a council property is near impossible, Leaving us to try and scrape together the money & up our income to something acceptable for a mortgage of any type.

Husband earns approx £15,500 annually
Me, P/t due to illness £3.600 Annually
Waiting for Tax credit award. TBC

As you can see, Its not much, When looking at the help to buy website it states that income must be under £80K But looking at what we would be offered is terrible in terms of mortgage so we are stuck in limbo because we don’t know where we stand.

We really need to look at moving, But private rented properties (We are currently in one) is roughly £700 plus for a one bedroom.

I previously had small debts (Combined about 3k) due to mental health issues. However most of these have been cleared up, Just low credit score to build

Sorry the post is all over the place, Trying to remember to put everything in.

Thanks in advance
:beer:

always_sunny

location, location, location; where are you looking?

PRINCESSX87

bristol / southglos

sparky130a

On those income levels you will struggle.

You also need to bear in mind ownership can be a lot more expensive than renting in reality.

always_sunny

maybe there's some magician in the forum who might be able to advise, though the cheapest I could see on rightmove is £70.2K for 1 bed at 40% ownership.
Even with 10% deposit (£7.2K), mortgage would be £63K (3.x annual income).

Technically you could, but you really need a broker/mortgage adviser to put the number through.
But... most importantly, have you saved up the deposit?

Your costs are not going to be cheaper than the rented accomodation.

Cakeguts

If you have trouble saving for a deposit or saving any money you are going to be at risk of becoming homeless if you buy a property. The big problem with owning property is that you have to be able to pay the mortgage if you lose your job because there isn't any benefit that will pay it for you. The most you can get is to have the interest paid for a limited amount of time. If you get very behind on your mortgage payments the bank will repossess the property leaving you homeless. So owning a property can be more risky than renting. As an owner you are also responsible for the maintenance of your home.

PRINCESSX87

Thank you everyone :beer: