Affordable v Shared Ownership

lea26

I am on the affordable housing list , but seeing as they have changed the system and have introduced and new clawback system it is no longer "affordable"... Also in my opinion this new "home choice loan" is an an absolute disgrace, you can only purchase a newly built home, so now the developers no longer have to worry about selling their houses! Also if the banks are refusing people mortgages then why are the council now giving out these huge loans? it doesnt make sense!

Anyway , what i'm trying to find out is if the "shared ownership scheme" is going to remain an option or are they trying to incorporate it all into one scheme! i would like to have the option of purchasing a second hand home, not forced into overpaying for a new one !!! When will all this new information be available on the council websites, anyone any info??? thanks

Weyhey

You would have to check with your chosen local council to see if they are still available. Not many people where going the shared ownership route since affordable housing came out and also with banks falling over themselves to give loans without much of a deposit. I think the SO information hasnt been on websites for over a year now but they were still in operation.
Now that is changing I think SO will go back up in popularity. The interest rates are ususally higher than banks and you will be advised to get a proper loan for the full portion of the property as soon as you can. Some councils have a claw back as part of SO and some don't.

Also I think at one stage some councils would allow you to buy your affordable house with a shared ownership loan.

nouveau_4.0

lea26 wrote: »

Also if the banks are refusing people mortgages then why are the council now giving out these huge loans? it doesnt make sense!

This is a myth, the banks are still giving out mortgages to people, its just the goalposts they call affordability have become more realistic.