Due to the ever-increasing difficulty of getting on the property ladder, HomeBuy have introduced a new government-backed scheme called Shared Ownership.
The scheme is designed to give people such as first-time buyers the opportunity to own their own property, without the need of a large deposit.
It provides the option to purchase a small percentage of the property – often between 30% and 50% – and pay rent and a small service charge on a monthly basis towards the remaining percentage. This significantly decreases monthly repayments, as the rent and mortgage payments are combined to make a smaller figure.
Furthermore, there is always the option to increase the share of the property you own, which will further reduce the monthly repayments.
Who Is Eligible?
If you already own a property you will not be eligible for the scheme and those that are eligible must intend to live in the property on a full-time basis.
The following are eligible:
- Nurses, teachers, policemen and other key workers.
- Existing council and Housing Association tenants.