Shared Ownership (max you can afford)

homeless9

Hi,

With new build Shared Ownership homes, they say you are expected to buy as much of the property as you can afford, so if you have a lot of savings, you will need to put a large chunk of that towards the deposit, and you will also need to borrow the maximum mortgage a lender offers you.....

Does anyone know how much of your savings you are allowed to keep back? Is it a number that is set in stone? The broker that the housing association put me in touch with said it was £10,000. I am not sure if this is decided by each housing association, and I am not sure if this is negotiable?

I think £10,000 is too small. Probably because I am a nervous wreck and cautious with money. I'd rather have a bigger safety net, so I am hoping there is room to negotiate myself keeping more than £10k back. Keeping more money back would not affect my ability to pass an affordability test.

Thanks.

ZAGJDB

My partner and I are currently going through the process of buying a 60% share of a new build flat. My partner has over £40k in savings and I have around £5k. We have been told we only need a deposit of £10k- no one has said at any point that we must use more of his savings to buy more of the property so this seems a little odd to me. The housing association and the mortgage broker are both aware of the savings we have as they have seen all of our bank statements so I would definitely query this!

AliceBanned

Doesn't sound right to me either. I have a shared ownership but not new build.


The scheme is designed to lower the mortgage lender's risk (as well as your own) compared to full ownership.

webjaved

On a shared ownership, do you have to take out a mortgage?