HTB vs Shared ownership for FTB

amethyst39

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amethyst39

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kingstreet

The two things are totally different and I can't see how a poll is going to help you work out which is best for you. HTB loan has future cost after five years, plus the repayment is based on future property value. SO you have the rent to pay on the share you don't buy and higher mortgage rates due to fewer lenders at high LTVs. Seek professional advice from an experienced newbuild mortgage broker.

amethyst39

Will do thanks for the advice

Sensory

If you can find an affordable/eligible property that you like with HTB, it's probably the better option when considering the long-term cost. With SO, you'll still be paying rent, and that rent is money you'll never see again. Overall rent under SO is likely to dwarf the interest payable on a HTB Equity Loan, and depending on your circumstances you could quite possibly remortgage to repay the Equity Loan completely before interest ever becomes payable. It would also be easier to sell the property, as you wouldn't have to deal with a Housing Association.

Staircasing applies to both options in the same manner.

csgohan4

Neither with a barge pole, HTB properties are over priced and SO is a niche market, you will find a smaller population to sell to, not to mention leasehold and repair costs e.t.c

fletcher1985

i have a so house at the time i was on my own, i owned 50% 3 years ago and last year i pushed that up to 80% and the endofthis year i will buy the last 20%. its really helped me get on the property ladder. even with the rent at £110 per month and mortage at £246 its still alot cheaper the renting.

but i only went for so because i new i would buy 100% in a few years if i was never going to staircase to 100% i would not have done it.