We’re pretty sure everyone would agree with us when we say that getting onto the property ladder, particularly in the current financial climate, isn’t the easiest of tasks. With deposit levels sky high, and interest rates and wage growth not really supporting the experience, it’s a difficult time to get on the first rung of the ladder. And while many would say that when you eventually make it onto that first rung, you’re set to be in a great position, getting to that point can feel like an almost impossible task.
That’s where the shared ownership scheme comes into place, built specifically to help first time buyers in their venture to own a home. The way in which the shared ownership scheme works is simple, the scheme is set up by a housing association, to offer prospective buyers the chance to buy a share of a particular property. The housing association at this point owns the rest of the property, but house owners are given the opportunity to increase their ownership all the way up to the full 100 percent. The home owners therefore pay their mortgage on the 25 per cent they own and pay rent to the housing association on the associating 75 per cent that they own.
In theory, this means that you could purchase a house with as little as five per cent of 25 per cent value of the entire property (depending on the mortgage provider), meaning the years of saving could be over much sooner than you think. Housing associations like Aster Group are supporting the scheme, offering their help and advice to all prospective buyers in the south, with properties available in Surrey and Oxfordshire among other popular areas.
Aster want to dispel the many myths associated with the scheme, and have a comprehensive guide over on www.buyanasterhome.co.uk not only outlining the entire process in more detail, but discussing the many positive benefits to a shared ownership scheme home. No question is too silly, you’d be surprised to hear how many people ask the team who you have to physically share the home with!
If you’re looking to get on the property ladder, shared ownership could be just the ticket for you, and it’s well worth investing a little more time in your research around the topic.