To understand your affordability for Shared Ownership, input your details below. The costs will calculate automatically.
Using the affordability calculator is really simple, you just need to ensure you know the following information first:
Each of the schemes will include information on starting cost and minimum shares, for example, Trent Park has a minimum of 30% for the share, whereas Leon House only requires 25%. Each scheme has a “starting from” price for the available property types, but if you would like further information, you can get in touch to find out more.
From here, the calculator contains elements you can adjust manually to see how certain choices may impact affordability. As you change the values you will see the final costs recalculate to give you an impression of the total costs involved.
This calculator gives you an indication of affordability only, please speak to us for detailed information around the associated costs.
The mortgage term & interest rate will vary, but our calculations run off 25 years at 4%. The mortgage term can be adjusted based on age and household income and the mortgage rate itself will be determined by your income, Loan-to-value (LTV), and other criteria are determined by your chosen mortgage lender. You will see that the longer the mortgage term, the lower the monthly payments and interest rates are, leading to a reduced cost of borrowing.
The ground rent is calculated on the share you don’t own – which is charged at 2.75%. For example, if you buy a 40% share of the home you pay 2.75% rent on the remaining 60%.
Service charges vary depending on the scheme, the number of bedrooms and other factors. In our calculator (above) we have included an indicative cost, but if you want to understand a more accurate breakdown of feeds, a member of the team will be able to give you the full information.
This is an indicator of the additional costs associated with the purchase and moving, as such we have not applied it to the calculations.
Estimated savings are calculated taking the deposit and adding £5,000 on – to account for moving costs and associated legal fees. Everyone incurs slightly different costs during the process, but this ensures that you have the funds available to do what you need to.
Buying a shared ownership property means that you’ll need a different type of mortgage, and typically you can look to pay from 5% upwards on your deposit. Your deposit will be on your share of the property, not the full value.
That would mean that on a property like Leon House where your minimum share starts at 25% your 5% deposit would work out at just under £4,000 (£3,968.75).
The larger your share of the property, the higher your deposit and therefore estimated savings required will be. The higher your share in the property, the more scrutiny there will be on the household income, and the weight in mortgage Vs rent repayments will change.
Our calculator runs off the term of 25 years at a 4% interest rate. The length of your term can be adjusted, and will therefore affect monthly repayments. It’s down to your mortgage lender to scrutinise the loan-to-value (LTV), which can also affect repayments within your term.
Your mortgage interest rates will depend on your mortgage lender. Most shared ownership mortgages will begin with a lower initial rate before moving onto their subsequent rate.
From what we’ve seen, initial rates can vary from 1.46% to 2.19% (for two years) before their subsequent rate sits between 3.54% – 3.59%. After the initial rate, most shared ownership mortgages are consistently within that margin.
Like any mortgage, the estimated income you’ll need will change depending on your share value, deposit, and other factors.
However, unlike a standard mortgage, your household income will have to be below £80,000, or £90,000 if you live in London.
Shared ownership monthly repayments comprise both your mortgage repayments and the remaining rent payments.
To give an example, if you had a property with a value of £220,000, with a mortgage interest rate of 3.54% with a 40% share over 25 years and you could manage a 10% deposit (£8,800) your monthly mortgage payment would be £398.19 and your rent would be £302.50.
Therefore, your overall monthly payment would be £700.69. As you can see, there are a lot of variables that determine your repayments. These are:
Feel like you understand the basics? Read articles that will extend your knowledge of affordable housing with articles written and reviewed by our experts.