Shared Ownership for First Time Buyers Information… When a person purchases a home for the fist time this is a major decision in their life and the number one question that is on their mind is probably where they are going to get their mortgage from.  Because many homes are very expensive in some part of the country many individuals are just priced out of the market. Individuals that find themselves unable to afford a full mortgage, shared ownership first time buyers might work well for them.  

Before an individual decides on the house or the area they want to live in it is important to figure out how much they are able to afford in a home purchase.  Most times, lenders execute an affordability assessment, which will give them a picture of all of the factors that are relevant to your payment ability.  

With shared ownership first time buyers the agreement is part buy and part rent.  The buyer take a mortgage out in the amounts between 25 to 75 percent of the housing association property value and pays a discounted rent on the rest to the association.  The portion that is purchased has a mortgage taken out on it.

A buyer that receives 25 percent of a property that has a value of £ 200,000 may be required to pay somewhere in the amount of £ 650 in monthly rent fees in addition to mortgage repayment.  However, when and individual purchases a property outright they might be required to make monthly repayments in the amount of £ 1,200.

The HomeBuy plan of the government allows those interested in shared home ownership the opportunity to select between the shared equity mortgage and the shared ownership first time buyers. Both allows the purchaser of the home to get a new house without taking out a mortgage on the full value of the home and both allow the buyer the choice of getting a greater share of the property in the future with a chance of owning the home outright. Those who are eligible include:

* Those waiting on or are already in social housing

* Buyers with a combined income under £ 60,000

* Key workers