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Five myths about shared ownership busted

Feel like shared ownership might sound right for you, but you don’t really get it?

We’ve busted five of the most common misconceptions about shared ownership to help you make an informed decision on buying your future home.

Myth 1: Shared ownership means I have to share my home with somebody

Technically you share it with us, but don’t worry – we won’t be living in your spare room!

Shared ownership allows you to buy a smaller proportion of a home when buying the whole thing at once would be out of reach financially. You’ll pay a mortgage on the share you own and rent to Beyond Housing on the remainder that’s owned by us. But we won’t be in the picture forever… you can choose to purchase more shares in your property until you own it 100% and are the sole owner.

Myth 2: Surely it’s cheaper to just rent than paying rent and a mortgage…

One of the most surprising benefits of shared ownership is actually how much cheaper it can work out. Because the share you’re buying costs less than the outright sale price, your mortgage costs less too. And since we only own part of your home, what you pay us in rent is much less than it would be for a whole property too.

Still need convincing? The numbers speak for themselves! To buy a 25% share of a new build, four bedroom, three storey house on the Queensgate development in Stockton, you would only need a deposit of £2,400 and it could cost you as little as £570 per month in mortgage and rent combined.

Myth 3: It’s only for first time buyers

While shared ownership is a great way for a new generation of homeowners to get on the ladder, it isn’t restricted to people who haven’t owned a home before. As long as you meet the eligibility criteria below, it could be the option for you too.

  • You are at least 18 years old
  • Your annual household income is less than £80,000
  • You don’t already own a home i.e. you’re a first time buyer or re-entering the property market. If you do already own a home, you must be in the process of selling it
  • You shouldn’t be able to afford to buy a home suitable for your housing needs on the open market
  • You can show you are not in mortgage or rent arrears
  • You can demonstrate a good credit history (no bad debts or County Court Judgements) and can afford the regular payments and costs involved in buying a home.


Myth 4: It’s too hard to get a shared ownership mortgage

Securing a shared ownership mortgage is no more difficult than getting a regular mortgage. Bear in mind you’ll be taking it out for a smaller amount than you would to purchase an entire property too. Not every lender offers shared ownership mortgages, but if you have a good credit rating and access specialist advice, you should be fine. We work with Foster Denovo, an independent financial advisor we recommend, and our shared ownership sales advisor is always on hand to support you through the process and keep you right!

Myth 5: There must be a catch…

There really isn’t! Buying through shared ownership is just like buying any other house on the open market. You will go through the same sales process, apply for your mortgage like anybody else, and once you’re in, your home is yours to make your own. The difference is it’s more affordable as your deposit only needs to be 5% of the share you buy, rather than 5% of the full value of the home. A smaller deposit, a smaller monthly payment and a quicker first step on the ladder. What are you waiting for?!

Click here to see the range of homes we have available for shared ownership now.

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