Help to Buy or Shared Ownership?

carrot_cake

Hi everyone
My eldest daughter (26) is currently saving to move out & buy her first property.  She would ideally like to do this as soon as possible.  Long story short, we have 2 other children with disabilities, the youngest is ALWAYS in & out of my eldest daughter's room.  She does have a lock on the door but feels guilty as my youngest has no awareness/communication/understanding etc (although she is 15).

She has been looking into both the Help to Buy scheme and the Shared Ownership properties.  She will have a deposit and has a full time job (in the NHS).
Can anyone give any advice/help on what would be the best route to take?

TIA.

moneysavinghero

Shared ownership IS Help To Buy. Do you mean HTB Shared Ownership vs HTB Equity Loan?

moneysavinghero

There is also a new scheme that might be of use to your daughter if she is classed as a key worker through her role in the NHS:
https://www.ownyourhome.gov.uk/scheme/first-homes/

firsttimesellerldn

moneysavinghero said:

Shared ownership IS Help To Buy. Do you mean HTB Shared Ownership vs HTB Equity Loan?

I've never seen shared ownership being described as Help to Buy so I'm not sure that's right. 

I used the Help to Buy equity loan scheme and chose that over shared ownership. For the first five years you don't have to pay any interest on the equity loan whereas with shared ownership you have to pay rent on the portion you don't own. So my friends who have shared ownership were paying more than me. Help to Buy is limited to new build properties though, and you have to pay back the loan based on the percentage of the property price/value. 

I'd advise her to read all the information she can on the various options, and then look at what is available from those schemes in the area she wants to buy in. It's possible only one will be affordable to her or she doesn't want to buy a new build, but personally I am glad I went with the HTB option. 

moneysavinghero

firsttimesellerldn said:

moneysavinghero said:

Shared ownership IS Help To Buy. Do you mean HTB Shared Ownership vs HTB Equity Loan?

I've never seen shared ownership being described as Help to Buy so I'm not sure that's right. 

The official scheme website describes it as Help to Buy:
 https://www.helptobuyagent3.org.uk/help-to-buy-schemes/shared-ownership/

dell12

Personally I'd go for Help to Buy, although as someone else has already said it may well come down to which scheme is being offered wherever she wants to live.

Help to Buy is a product that can be used on private homes (up to the price caps), which in my opinion means you generally end up with a better product on a better part of the site. Conversely many developers see shared ownership as 'affordable housing' and consequently, the specification is generally lower and it's often next door to affordable rented homes.

firsttimesellerldn

moneysavinghero said:

firsttimesellerldn said:

moneysavinghero said:

Shared ownership IS Help To Buy. Do you mean HTB Shared Ownership vs HTB Equity Loan?

I've never seen shared ownership being described as Help to Buy so I'm not sure that's right. 

The official scheme website describes it as Help to Buy:
 https://www.helptobuyagent3.org.uk/help-to-buy-schemes/shared-ownership/

Fair enough! I’ve not seen it referred to in that way elsewhere.