Shared ownership minimum share!?

Danboboy

Hello all

I am after a little help to find out if what I was told today by a independent financial adviser is true!?
Here's the case:
Myself and my partner qualify for shared ownership on a new build. 8K deposit
We wanted 30% of 295.000 at 88k £350 Mort £420 Rent approx
We were told today that because we can afford it we must purchase a bigger share of the bat at 55%! Is this true or is the broker trying to sell a larger mortgage. He was waffling about the housing association needing to maximize the buyers selling share at the " government insists"!
We only wanted 30% which would have made our monthly cost to £1012, He said today that the monthly would increase to £1349 not including all the usual extra maintenance etc.

Is this true? as I cannot find any info anywhere on the web about "MINIMUM" share based on income.

Thanks in advance
Dickie

:money:

mije1983

Have you asked the HA whose scheme the proprty falls under? They may have different criteria that state you have to buy a share based on what you can afford.

Klr005

In my experience, what you have been told is true.
We bought shared ownership 3 years ago and enquired about buying 50%.
We were then told by our housing association that the %share that we purchase is decided by the shared ownership affordability calculator.
They take your incomes, outcomes etc and give you the maximum amount you can buy and then you must purchase that amount.

We ended up buying 65% but that worked to our advantage as we were able to staircase to 100% this year with our equity.

Danboboy

Thank you all.. put my mind at rest a bit.