Check out our myth-busting guide to the Government's Shared Ownership scheme, where we explore some of the facts and fiction surrounding it.
Myth: It’s hard to get a Shared Ownership mortgage
Reality: It is not necessarily harder to get a Shared Ownership mortgage than any other residential mortgage, providing you have the required deposit, a good credit rating, and get qualified advice. However, not every lender offers Shared Ownership mortgages, so there may be less choice available to you.
Myth: You need a big deposit and lots of savings
Reality: You typically need a smaller deposit than for a standard mortgage - usually 5-10% of the share you're buying. As with buying any property, you'll also need to have savings set aside for solicitor's fees, mortgage fees, and moving costs.
Myth: Most people earn too much to qualify
Reality: As long as you earn less than £80,000 a year (or £90,000) if you live in London, you qualify for the scheme. You will also need to earn enough to cover the mortgage payment and rent payment, any applicable service charges, as well as your usual household bills and outgoings, such as utilities and food.
Myth: It’s only open to first-time buyers
Reality: The scheme is open to anyone aged 18 or over who doesn't already own a property, although some lenders will require you to be 21.
At Newbury, we’ve helped a variety of people in different stages of life to purchase through shared ownership – including people starting over after a divorce, older couples looking to downsize, and young professionals relocating.
Myth: Shared Ownership homes are tiny flats
Reality: There are a range of property types available through the scheme, including flats and houses. Some may be starter homes, but they’re not necessarily any smaller than buying a starter home with a standard mortgage.
Myth: It means sharing with other people
Reality: Not unless you want to! It’s important to remember that it is the ownership of the property you share with a housing association, not the living space.
Myth: I wouldn’t be able to keep a pet or decorate how I’d like to
Reality: If you buy a flat, having a pet is dependent on the development you choose and their rules - the same as it would be if you bought a flat on the open market. It’s worth checking with the development you’re interested in early on, especially if this is a dealbreaker for you!
However, if you’d like to have a bright green kitchen or a black ceiling in your bedroom – go for it - just be sure to check before undertaking any major renovation works.
You can learn more about what you can and can't do in terms of decoration and refurbishment on the gov.uk website.
Myth: Selling up is harder than with a 'normal' property
Reality: You can sell up at any time, however, you must write to your housing association to let them know you plan to sell. They will usually have first pass at finding a buyer within a set period of time. If they do not find a buyer within this time frame, you will be able to sell on the open market, i.e. via an estate agent.
If the housing market is moving well, housing associations will often have a waiting list of people wanting to apply. In more difficult times, when the market is slower, most will let you open it up to estate agents after a couple of weeks. This means that the process of selling a Shared Ownership property can take a bit longer.
You can learn more about the process of selling a Shared Ownership property here.
YOUR MORTGAGE IS SECURED ON YOUR HOME. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.