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'Buy now and beat rising costs'

MAKE your new home dream come true through shared ownership − and don't delay if you want to make the most of low-rate home loans and current market prices.

This timely advice goes out to would-be buyers on lower incomes from Bromford Homes Sales and Marketing Director Bev Hall, an expert in affordable home ownership.

You can move out of rented housing and into a secure shared ownership home for as little as £1,500 deposit, she says, and enjoy the benefits before soaring property values and higher interest rates bump up the cost.

"Now's the time to make your move if you want a home of your own but rent from a private landlord or live with your family or friends," Bev urges first-time buyers and other people who can't afford to buy on the open market.

"Our part-buy, part-rent scheme − also known as shared ownership − remains the most affordable way for you to take your first step onto the property ladder if you can't afford outright sale prices or one of the new Help to Buy equity loans.

"The property market is changing − and changing fast. Average home prices have just hit a record high and the Bank of England has now warned that interest rates may rise as early as next year.

"We at Bromford always do everything we can to make sure shared ownership costs are truly affordable but the growth in house prices is gathering pace and it won't be long before that pushes up the value of homes on new developments.

"If interest rates go up too, then all forms of homebuying will cost more and that's particularly bad news for first-time buyers on lower incomes − people who already have to work very hard to make ends meet and to save for a deposit. If that sounds like you and you're already in a position to make your move then I would recommend that you don't delay. Ask us about shared ownership and how it can help you move into a new home that you can call your own."

Bev Hall on HomeBuy

Deposits and monthly mortgage costs are so low with shared ownership because, instead of buying outright, you buy between 25% and 75% of your new home - and pay low rent on the remaining share.

If you take an example like The Beeches in Northfield, you can buy a minimum 25% share of a two-bed house − the actual amount will reflect how much you can afford − for just £30,000 and your deposit could be as little as £1,500, assuming a 95% mortgage.

"That deposit is much less than you would have to pay if buying on the open market − or if you buy through the new Help to Buy mortgage scheme," says Bev (pictured above). "That's true even if you end up buying a more typical shared ownership share of 40%. That would cost you £48,000 using the same example at The Beeches and a minimum 5% deposit would be just £2,400."

Compare that, she says, with a similar home selling for an open market price of £120,000. A minimum 5% deposit would be £6,000 − two and a half times as much as our average part-buy example.

"These figures − and especially the low deposits − go a long way towards explaining why so many people on lower incomes are saying YES to share ownership," says Bev.

"It's also been proven that your typical total monthly housing costs are cheaper with shared ownership than if renting from a private landlord or buying outright. That's true even when you add in the low rent that's charged on the share you don't buy as well as other regular housing costs.

"At the end of the day, you get a new feature-packed, energy-efficient home that you can call your own. You can decorate it the way you like and enjoy the peace of mind that comes with knowing that it's so much more secure than rented housing. So many of our shared ownership buyers tell us that they appreciate this − especially families with children at school and a network of local family and friends."

To find out more about shared ownership, give Bromford Homes a call now on 0845 60 10878 or register your interest online. You can also keep in touch by following us on Twitter or Facebook.

 

17 October 2013