What are the costs for purchasing a Shared Ownership home?
You may know the costs of a standard home, but a Shared Ownership property is a whole different kettle of fish. Find out what to expect when you buy one below.
A small deposit
To buy a Shared Ownership home, you will first have to put down a deposit. The benefit of a Shared Ownership home is that this upfront cost will be a lot less than the deposit for a regular house on the market, usually varying from 5% to 10%.
In case you are new to mortgages (lucky you by the way), they are a form of loan that you need to finance your property. This is then repaid in monthly installments until your mortgage is paid off.
Like with buying most houses, you will have to pay a mortgage on a Shared Ownership home. The amount that you pay on your mortgage will vary depending on the value of the share you purchase, your deposit and the remaining length of your mortgage term.
Rent for the rest of the property
Alongside your deposit and mortgage payments, you also have to rent for the portion of the house you haven’t paid for. Rent on a Shared Ownership home is usually around 3% of the unsold portion of the property.