Are shared ownership mortgages a good idea?

Whether shared ownership mortgages are a good idea for you depends on your personal situation and preferences. Here are some things to think about:

  1. Affordability: Shared ownership can help you buy a home with a smaller deposit and lower monthly costs. If you’re struggling to save or afford a full mortgage, it could be a good choice.
  2. Flexibility: With shared ownership, you can start by buying a smaller share of a property and increase it over time. This might be useful if your finances or housing needs change in the future.
  3. Market Conditions: Shared ownership can be helpful in areas where property prices are high. But keep in mind that there could be rent increases and rules about selling your share.
  4. Maintenance: Even though costs are lower upfront, you still need to maintain your part of the property. Make sure you understand what you’re responsible for.
  5. Limited Choices: Shared ownership properties are often limited to specific areas or developments. If you have specific preferences, it might limit your options.
  6. Rent Payments: Remember that alongside your mortgage, you’ll also pay rent for the share you don’t own. While it’s usually less than market rates, you need to budget for it.
  7. Exit Plan: Think about how long you plan to stay in the property and what you’ll do if you want to sell your share. Make sure you know the rules and any restrictions.

In the end, whether shared ownership is right for you depends on your finances, what you want in a home, and your plans for the future. Our Shared Ownership Mortgage Specialist Advisors will help you understand all the different requirements and guide you through the application process once you have made your decision.

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