Learn how shared ownership makes buying a house more affordable and get expert tips to get financially fit. Read through until the end to discover how to join our free mortgage workshops and kickstart your homeownership journey.
Mortgage rates have been slashed this month as the mortgage price war intensifies – with more than 30 lenders announcing cuts to borrowing costs since the New Year.
With competition between mortgage lenders hotting up, now may be the perfect time to launch your homeownership journey. If you’re taking your first steps onto the property ladder or sizing up for more space, house buying can be daunting. But Hyde New Homes is on hand to get you financially fit for 2024 and offer an easier alternative to outright purchase or help you escape the rental trap.
Compared with an outright purchase, a shared ownership home may be a more affordable choice, thanks to a typically lower deposit, based on the equity share being purchased meaning that you may not have to save for as long.
For example, let’s have a look to a three-bedroom home at Hyde New Home’s stunning development, Spring Acres, near Sittingbourne, Kent. This house has a price of £98,750 for a 25% share, based on a full market price of £395,000. A 10% deposit would be as low as £9,875, as compared to £39,500 if one were to buy the same priced housed on the open market.
Along with a mortgage, shared ownership home owners will pay a government- subsidised rent to Hyde New Homes, on the share of their home that they haven’t yet purchased.
The combined monthly payments consist of a mortgage payment for the share you own and the rent for the remaining share, as well as a service charge, for the upkeep of the development. This monthly outgoing can often be lower than paying rent on the open market, and is also not subject to fluctuations or the decisions of a landlord.
Further shares can be purchased at any convenient time through a process known as staircasing, which even allows homeowners to buy all their home and own it outright.
Sounds obvious but a little planning and budgeting can make all the difference when saving for a deposit. If you have an existing credit card or loan, it’s important you keep up with the minimum repayments and try not to get too close to your credit limit. If you’re struggling with repayments, speak to your lender about the possibility of a payment holiday. This would not affect your credit score.
This, along with your credit score is a simple way to show lenders that you are reliable. Being registered on the electoral roll shows that you’re in full-time employment and live at a fixed address. It’s also super easy, can be done online and only takes a few minutes.
From bank statements to payslips, you’ll often need to provide a large amount of information when looking to buy a home. So, get your paperwork in order. It might also be a good nudge to go through your spending habits- take a look at that standing order you set up for a membership to an app that you’ve forgotten about. When is it next up for renewal? If you don’t need it, set a reminder to cancel it. Easy!
If your employer offers any benefits or programs that can help you save for a home, take advantage of them. Some employers offer help with a ‘travel to work scheme’ that might help you to save a few pounds a week, it all adds up!
The workshop will provide expert information from Hyde New Homes’ team of specialists about how to secure your new home through shared ownership. You’ll receive expert mortgage advice from independent financial advisors eligibility in a private setting and be able to find out whether you are eligible to buy through shared ownership and whether you could afford to at present, as well as identify what you need to do to be able to buy if that doesn’t turn out to be viable at present. Speak to our friendly and expert inhouse sales consultant and they’ll help you find the home that’s right for you. Have a look at one of our fully dressed show homes and envisage how furniture would sit in your future home. Pop along to have your questions answered – perhaps you can start your home buying journey sooner than you think.
Eastman Village, Harrow, HA1 4GR – Friday, 2nd and Saturday, 3rd February 2024
An exciting new residential quarter, conveniently located in the heart of Harrow. Once home to the Kodak factory, this landmark site is steeped in history and surrounded by transport connections to enjoy the London lifestyle. Eastman Village is offering a range of 1 and 2 bedroom homes.
Prices start from £84,250, for a 25% share based on a full market price of £337,000 for a 1 bedroom apartment, with a deposit of £8,425.