Monthly archive for July 2020

In 2018, the average UK tenant spent 52% of their disposable income on rent and with rental payments so high it makes saving for a deposit to purchase a flat or home very difficult. There is however a scheme that provides an option for those who wish to own a property but do not have a large disposable income or savings. The Shared Ownership mortgage scheme allows applicants who are not able to currently afford to buy a property with the option to ‘purchase’ a share of a property whilst paying rent on the remainder. To be eligible for this scheme your household income must be £60,000 or less (£90,000 or less in London).  Also, you need to be approved by the Housing Association and often you can only buy in the borough that you currently live in. An Example You buy a 25% share in a £500,000 property for £125,000. Your deposit is linked to the value of your share of the property and would normally be 5%, so £6,250 in this example. You will then pay a mortgage on the amount of the property you own yourself along with rent on the remaining share, allowing you to build up some

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