'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
"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
"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
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
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
"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
"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