what are downsides to this scheme, (shared ownership)

[master L]

I am looking at this scheme as i dont have enough deposit for a house and rent is expensive.
I may put 10k deposit in, mortgage about 90k and pay anout 340pcm.
what are the downsides ??

http://www.sovereignliving.org.uk/Webpage/48/Share...

The builds they have are new and look very nice.

[Steve Evil]

If you've got 10k as a deposit, on the government NewBuy scheme that would give you your 5% towards a £200,000 house. Nothing wrong with shared ownership, my wife owns one and it's great for us as it's cheap whilst we save a deposit for a larger property, but there are lots of restrictions that come with it and sometimes you'll find that the neighbours aren't the nicest of folks.

[master L]

But my problem with the newbuy' scheme is i am single so it would cost me too much a month to repay that large mortgage im guessing.

Steve Evil said:

If you've got 10k as a deposit, on the government NewBuy scheme that would give you your 5% towards a £200,000 house. Nothing wrong with shared ownership, my wife owns one and it's great for us as it's cheap whilst we save a deposit for a larger property, but there are lots of restrictions that come with it and sometimes you'll find that the neighbours aren't the nicest of folks.

[Steve Evil]

master L said:

But my problem with the newbuy' scheme is i am single so it would cost me too much a month to repay that large mortgage im guessing.

Steve Evil said:

If you've got 10k as a deposit, on the government NewBuy scheme that would give you your 5% towards a £200,000 house. Nothing wrong with shared ownership, my wife owns one and it's great for us as it's cheap whilst we save a deposit for a larger property, but there are lots of restrictions that come with it and sometimes you'll find that the neighbours aren't the nicest of folks.

Might be worth dropping one of the Mortgage chaps on here an e-mail and seeing what they think is possible in terms of a mortgage, that way you'll have a better idea of what it'll cost you a month for all of the options. Sarnie is often on here and came straight back to me with some advice recently.

A £90,000 mortgage over 25 years at say 4% will cost you about £480 a month, then you'll need to add on your rental payment to the housing association, which won't be a lot, perhaps £150-£200 a month as an estimate, but the overall cost will be more than you've estimated above.

Edited by Steve Evil on Wednesday 12th September 16:51