Shared Ownership - joint salary…

GingerWarrior

Hi all

Does anyone know if the max joint salary for shared ownership will increase from the existing £80k? 

My wife and I are just over the threshold, and the only way we can go down this route would be for her to go part time (not ideal). 

Many thanks 

Snookie12cat

If you have such a high salary, why do you need shared ownership? 

GingerWarrior

Snookie12cat said:

If you have such a high salary, why do you need shared ownership? 

We don’t have the savings for a large deposit, hence the chance to get on the property ladder isn’t going to happen any time soon through a normal purchase 

AFF8879

GingerWarrior said:

Snookie12cat said:

If you have such a high salary, why do you need shared ownership? 

We don’t have the savings for a large deposit, hence the chance to get on the property ladder isn’t going to happen any time soon through a normal purchase 

You can still get 95% mortgages that aren’t shared ownership thanks to government’s mortgage guarantee scheme

https://mortgages-enquiry-page.comparethemarket.com/?wip=61ce2c8e074811caf2450882

GingerWarrior

AFF8879 said:

We don’t have the savings for a large deposit, hence the chance to get on the property ladder isn’t going to happen any time soon through a normal purchase 

You can still get 95% mortgages that aren’t shared ownership thanks to government’s mortgage guarantee scheme

https://mortgages-enquiry-page.comparethemarket.com/?wip=61ce2c8e074811caf2450882

That goes to a page regarding remortgaging

Snookie12cat

GingerWarrior said:

Snookie12cat said:

If you have such a high salary, why do you need shared ownership? 

We don’t have the savings for a large deposit, hence the chance to get on the property ladder isn’t going to happen any time soon through a normal purchase 

You tend to need a higher deposit for your share for shared ownership so 15% of 40% share etc, so it's not likely to help you. You are better off saving a 5% deposit and buying the house outright. 

Shared ownership is not really ideal if you can help it, and is aimed more towards those who can't get a large enough loan from the bank due to low income to purchase the whole property.

GingerWarrior

Snookie12cat said:

You tend to need a higher deposit for your share for shared ownership so 15% of 40% share etc, so it's not likely to help you. You are better off saving a 5% deposit and buying the house outright. 

Shared ownership is not really ideal if you can help it, and is aimed more towards those who can't get a large enough loan from the bank due to low income to purchase the whole property.

I appreciate its not ideal. My savings were needed for something more important at the time, so missed out on doing this. 

Trying to get a 5% deposit though is massively hard (I know people will go on about literally cutting everything that’s basically non/essential ). Will make a concerted effort for sure but £10-20k deposit will take a few years at the very least to put together 

Racky_Roo

On a combined salary of £80k you should be able to save £10-£20k in a year unless you have significant debts you are paying off. It might be an idea to hop over to the debt free wannabe board and post an SOA ) statement of affairs to see if any cutbacks can be made without impacting your lifestyle too much but the reality is if you want a house then you will need to make sacrifices in the short term

GingerWarrior

Racky_Roo said:

On a combined salary of £80k you should be able to save £10-£20k in a year unless you have significant debts you are paying off. It might be an idea to hop over to the debt free wannabe board and post an SOA ) statement of affairs to see if any cutbacks can be made without impacting your lifestyle too much but the reality is if you want a house then you will need to make sacrifices in the short term

It’s more my better half who’s got the significant debts (it is something we are looking to get a handle on) and so I may have to go it alone, but presume that if I did that her financial situation could/would be taken into consideration. 

Thank you for the guidance. 

md258

Could one (or both) of you use salary sacrifice to (temporarily) reduce your earnings down to £80k? I don't know the scheme rules but could be worth looking into.

[Deleted User]

As suggested 80k household income is enough to save and buy in the conventional way. Saving 1 to 1.5k per month off that should be the modest aim. Your next steps should be to restructure finances: your goals, spending habits, debts -in order to save more - if possible. Making it an aim to buy in 2 to 4 years.