Buying a shared ownership property is one of the only ways that first-time buyers in cities such as London can afford to get on the ladder — but how does it stack up financially?
FT podcast: Should I buy a shared ownership property?
Claer Barrett talks to listener Lucy about whether she should pursue shared ownership. Listen here
This week’s guest on Money Clinic podcast, Lucy, is on the cusp of buying a shared ownership flat with her partner — but she’s getting cold feet.
The shared ownership model enables buyers to take out a mortgage on part of the property, and pay rent on the rest. However, Lucy is worried this could be more expensive than she bargained for and fears she will never be able to afford to own 100 per cent of her new home.
However, shared ownership would enable the self-employed mother to buy in the part of London she grew up in. If she passes up this chance, what are her chances of being approved for a mortgage in the future?
Presenter Claer Barrett hears from independent property expert Henry Pryor — who believes shared ownership is “God’s way of telling you that you can’t afford to buy there” — and mortgage broker Andrew Montlake from Coreco.