To buy or not to buy
Anna Campbell, Head of Sales, explains how you can get on the property ladder.
With the increasing cost of living many see buying a home as out of reach.
According to The Mortgage People that’s not exactly true…
In recent months, interest rates have increased from 0.5 to 4%, with mortgage rates increasing as a result. But we have to put this into context for the shared ownership homes we sell.
The effects of increasing rates are less dramatic for people obtaining shared ownership mortgages. If you borrow £200,000-£300,000, going from rates of 2-3% up to 5-6% will make a big difference to your monthly payments.
However, shared ownership customers buy a percentage of a home, and so a percentage of the mortgage. In real terms, the additional monthly costs are about £50 in many cases, and as low as £10 in some.
Looking at long term affordability
In the year 2021/22 we helped 146 people to buy a shared ownership home.
That’s 146 people who are investing money in their home instead of renting. People are often surprised with how little they need to buy a home. For example, our two bedroom homes in Market Harborough are on the market for £73,750 for a 25% share.
Customers need to assess their own affordability, but considering longer mortgage terms or buying a smaller share could help.
While the market is slowing down, that doesn’t mean that house prices aren’t going up. They’re just increasing at a slower rate, so it’s still worth getting on the ladder as soon as possible.
Shared ownership information event
We know there are still a few myths about shared ownership.
To help, we’re hosting an information event at Nottingham Council House for local people.
You will get the chance to:
- Ask questions about shared ownership
- Learn about our new developments
- See the home types on offer
- Get some free mortgage advice from our independent financial advisors.
For us the question isn’t to buy or not to buy.
We want people to ask us how to do it the affordable way through shared ownership.