FINANCE
Have You Considered Shared Ownership?
For many first time buyers, saving 5-10% of the full value of a property can feel out of reach. Due to mortgage lenders’ affordability requirements, you may not be able to secure the borrowing needed to buy a home, even with the deposit you’ve worked so hard to save
Twenty7Tec reports, based on its data sets , that the income needed to afford the average house price is £60,000.Yet over half (59%) of first time buyers earn below this. Shared Ownership can offer you a helpful stepping-stone to bring you closer to achieving your dream of homeownership. WHAT IS SHARED OWNERSHIP? Shared Ownership lets you buy a share of a home (typically 10-75%) and pay rent on the rest.You can also increase your ownership over time, if your circumstances allow, via a process called staircasing. As your ownership is based on a share of the home, rather than the whole property, both your deposit and your required amount of mortgage borrowing are reduced proportionally. You will pay your monthly repayment mortgage payment to your lender, and rent and service charge to your housing association. (See table below.)
and it will be down to your panel broker and lender to confirm what income can be taken into account in your circumstances.
areas and looking for any new or resale properties it may have available. A panel broker like Metro Finance will look after your affordability assessment. We will help you arrive at the most suitable share, while keeping your costs comfortable. A Budget Planner will assess your income and outgoings, to help you plan the costs of your new home and all that comes with it! If purchasing with a mortgage, your lender will also assess your affordability in line with its criteria. INCOME Any income used towards the assessment will need to be evidenced and sustainable. Typical examples include: Employed income (evidenced via payslips and bank statements), self-employed income (evidenced via completed tax calculations and overviews), pensions (evidenced via pension awards and bank statements), benefits such as Child Benefit, Universal Credit, Personal Independence Payment (evidenced via award letters and bank statements). This is not an exhaustive list
COMMITMENTS
Commitments are items which you are obligated to pay each month, outside of your usual bills and living costs. These may be financial debts from loans, car finance or credit cards. Or commitments towards children or people you care for, such as childcare or maintenance payments. With Shared Ownership, your monthly rent and service charge costs will also be factored into the calculations. Unless commitments will be repaid before completion on the property, these usually form part the overall affordability checks and may impact the outcome. SUMMARY With clear eligibility criteria and a straightforward process supported by specialist brokers and high street lenders, Shared Ownership makes owning your dream home a reality
WHO IS ELIGIBLE?
You can typically buy through Shared Ownership if: 9 You’re a first time buyer, or won’t own any property at the time of completion 9 Your household earns £80,000 or less (£90,000 in London) 9 You’re unable to buy a suitable home outright on the open market.
WHAT IS THE PROCESS?
You will usually purchase Shared Ownership from a housing association, so it’s worth registering with those in your
Property Value £250,000
25% Shared Ownership
Outright Purchase
metrofinance.co.uk
5% Deposit
£3,125
£12,500 £1,275
Mortgage Payment
£319 £460 £779
Your home may be repossessed if you do not keep up with repayments on your mortgage
Rent and Service Charge
N/A
Total (per month) £1,275 Mortgage payments estimated using a 30-year term and interest rate of 5%. Shared Ownership rent costs estimated at 2.75% of unsold equity. Service charge example £30.
There may be a fee for mortgage advice of up to 1% of the amount borrowed. A typical fee is £499, but this will depend upon your circumstances
88 First Time Buyer February/March 2026
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