Out & About August 2017

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IS SHARED OWNERSHIP THE KEY TO BUYING YOUR OWN HOME?

In last year’s Autumn Statement the Government pledged to inject £1.4billion into affordable housing plus £2.3billion for more homes in ‘areas of high demand’. The investment is to be shared between three current schemes. One of these schemes, Shared Ownership, has been helping people into home ownership for the last 30 years, but what is it? Shared Ownership provides access to home ownership that would otherwise be unaffordable. The scheme is a cross between buying and renting and allows the purchaser to buy a share in a property between 25% - 75% of the purchase price, and then pay rent on the remaining share. The purchaser will often require a smaller mortgage for the share they are purchasing. There is an option to buy further shares in the property at any point in the future. This process is known as staircasing and provides the opportunity for future outright ownership. :KDW DUH WKH EHQH¿WV" Your deposit can be as little as 5% of the share, not the whole property value. Depending on the Housing Association’s criteria, you can start with purchasing as little as a 25% share of the purchase price, gradually increasing your share in the property when you can afford to and eventually own the property outright. The rent paid on the remaining share is often much less than the rental rates charged on the open market. Am I eligible? You are eligible if you are at least 18 years old but it’s worth noting that some mortgage lenders will require the minimum age to be 21 years old.

You will need to have enough savings to cover the minimum 5-10% of the equity share you are buying, as a deposit. In addition, you will need at least £2,500 to cover the costs of buying a home. You must have a gross household income of no more than £80,000 per annum or £90,000 per annum in Greater London, and must not already own a home. Last but not least, you must be able to demonstrate a good credit history and you must not be in rent arrears, as well as ensuring you can afford regular payments and the costs involved in buying a home. Myth Busting • ,W¶V QRW MXVW IRU ¿UVW WLPH EX\HUV • Shared Ownership properties are often sited in new private developments. • Shared Ownership refers to how the property is owned, not lived in. • You don’t need permission to decorate your home. How do I get a Shared Ownership mortgage? Newbury Building Society has been providing mortgages and savings products for over 160 years. We’re one of the oldest surviving building societies in the UK and one of the few lenders who provide products up to 95%, even on Shared Ownership. 7R ¿QG RXW PRUH DERXW +HOS WR %X\ 6KDUHG Ownership schemes visit our Newbury branch, call us on 01635 522588 or email newbury@newbury.co.uk

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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. 1HZEXU\ %XLOGLQJ 6RFLHW\ LV DXWKRULVHG E\ WKH 3UXGHQWLDO 5HJXODWLRQ $XWKRULW\ DQG UHJXODWHG E\ WKH )LQDQFLDO &RQGXFW $XWKRULW\ DQG WKH 3UXGHQWLDO 5HJXODWLRQ $XWKRULW\ )LQDQFLDO 6HUYLFHV 5HJLVWHU QXPEHU

NEWBURY building society

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