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IS
SHARED OWNERSHIP
THE KEY TO
BUYING YOUR OWN HOME?
In last year’s Autumn Statement the
Government pledged to inject £1.4billion
into affordable housing plus £2.3billion
for more homes in ‘areas of high demand’.
The investment is to be shared between
three current schemes. One of these
schemes, Shared Ownership, has been
helping people into home ownership for
the last 30 years, but what is it?
Shared Ownership provides access to home
ownership that would otherwise be unaffordable.
The scheme is a cross between buying and
renting and allows the purchaser to buy a share
in a property between 25% - 75% of the purchase
price, and then pay rent on the remaining share.
The purchaser will often require a smaller
mortgage for the share they are purchasing.
There is an option to buy further shares in the
property at any point in the future. This process
is known as staircasing and provides the
opportunity for future outright ownership.
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Your deposit can be as little as 5% of the share,
not the whole property value. Depending on the
Housing Association’s criteria, you can start with
purchasing as little as a 25% share of the
purchase price, gradually increasing your share in
the property when you can afford to and
eventually own the property outright.
The rent paid on the remaining share is often
much less than the rental rates charged on the
open market.
Am I eligible?
You are eligible if you are at least 18 years old
but it’s worth noting that some mortgage lenders
will require the minimum age to be 21 years old.
You will need to have enough savings to cover
the minimum 5-10% of the equity share you are
buying, as a deposit. In addition, you will need at
least £2,500 to cover the costs of buying a home.
You must have a gross household income of no
more than £80,000 per annum or £90,000 per
annum in Greater London, and must not already
own a home. Last but not least, you must be
able to demonstrate a good credit history and you
must not be in rent arrears, as well as ensuring
you can afford regular payments and the costs
involved in buying a home.
Myth Busting
•
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•
Shared Ownership properties are often sited
in new private developments.
•
Shared Ownership refers to how the property
is owned, not lived in.
•
You don’t need permission to decorate your
home.
How do I get a Shared Ownership mortgage?
Newbury Building Society
has been providing
mortgages and savings products for over 160 years.
We’re one of the oldest surviving building societies
in the UK and one of the few lenders who provide
products up to 95%, even on Shared Ownership.
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Ownership schemes visit our Newbury branch,
call us on
01635 522588
or email
newbury@newbury.co.uk-DQH %RVKHU
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NEWBURY
building society
YOUR MORTGAGE IS SECURED ON YOUR HOME. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST
YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
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