Is Shared Ownership A Good Idea?
A big advantage of Shared Ownership schemes is that they allow people on lower incomes to get on the property ladder, or buy a bigger property than they’d otherwise be able to afford.
Shared ownership also lets you purchase a home gradually, by buying a bigger share if and when your finances change and you’re able to afford it.
Plus, depending on your deposit amount and mortgage terms, your monthly outgoings may be cheaper than when just paying rent.
The down-sides include the restrictions on selling your home, which could prevent you from getting a quick sale in the future. And as you won't own your home outright, you might need permission to make improvements or changes to it.
With Shared Ownership, you might find that pets, or renting a room to another tenant, aren’t allowed.
There’s also the chance that the combination of rent as well as mortgage end up being the same or more than the rent you would be paying, and you may find yourself liable for service charges if you’re in a flat or other shared community of properties.
In short, there are some great reasons to consider Shared Ownership, as well as some not-so-good factors to bear in mind.
If you think you meet the criteria, it’s worth discussing it further with a mortgage broker.