Shared Ownership - not enough

F

Faithjm.

Guest
Hi

I posted before about my bf applying for Shared Ownership. He has just been provisionally approved for €217. I thought he might not be approved for much but now that we know exactly how much it is, it makes me feel worse. We'd need a whole lot more to get any sort of a house in Dublin. We have about 20k to put to it but still not enough. Maybe just have to save harder for longer.

Anyone got any opinions on this, I'd really appreciate it.
 
that means he can borrow 217K - under the shared ownership scheme doesn't the council cough up the other half - therefore the 217 is only your share?

Ring and ask them to explain it to you as the whole thing gets quite confusing !
 
No, 217 would be the total value of the loan, taking into account repayments and rent.
 
Would it be possible to move a bit away from dublin in order to find a house near that price?
 
if you guys have 20 grand could you try a bank/broker and see how much they could give you instead of the shared ownership?
 
Dont think we could ask a bank/broker. He's working but I'm not at the moment. I had to leave my job because of childcare etc but am now starting up a business. I know that doesn't help because you need accounts etc
 
could be worth a try chancing a broker/bank all they can say is no. From looking at my home for upto 250 for a 2 bed in dublin there are a few hits so you might be lucky and just be able to scrape it. Hope it works out.
 
Non-status lenders e.g. Start Mortgages, GE Money and others may offer you a mortgage to include income from your new business. A good mortgage broker should have access to several non-status lenders. But beware - the rates from such lenders are invariably a good bit higher (+2% minimum) than High Street banks, there's up-front application fees and if you default on your mortgage, they WILL move to repossess your house quickly. Non-status lenders should be the last resort. Then as soon as you've got a couple of years audited accounts for your business, re-mortgage to move to a High Street lender offering better rates.
 
I would recommend that you apply for Affordable Housing- they have some excellent value houses/ apartments etc on offer- (i would love to apply myself and get a bargain- but unfortunately there was no such thing in my day!).

Where do you want/ need to live? Some local authorities have better and more attractive offers than others as regards location, house type etc.
 
No, 217 would be the total value of the loan, taking into account repayments and rent.
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I don't understand this. Surely the loan is for the share that you are buying and the whole point of the rent bit is that you don't have to have a loan for it?

Or am I misunderstanding this?
 
annR said:
I don't understand this. Surely the loan is for the share that you are buying and the whole point of the rent bit is that you don't have to have a loan for it?

Or am I misunderstanding this?
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With shared ownership scheme as far as I'm aware you pay rent to the council on the part of the house they own. And this rent seems high, designed for when houses were not so pricey. There's rent relief if your salary is under a certain threshold - <26K.

One thing to note is if you get an affordable house, you can actually use the shared ownership scheme to purchase the affordable house. This can assist you if you couldn't get a mortgage for the full affordable house.
 
annR said:
I don't understand this. Surely the loan is for the share that you are buying and the whole point of the rent bit is that you don't have to have a loan for it?

Or am I misunderstanding this?
Click to expand...

No, but you still have to be able to afford the rent. The figure of 217 quoted was definitely for the total purchase price. They have a limit of something ridiculous like 250 anyway.

One thing to note is if you get an affordable house, you can actually use the shared ownership scheme to purchase the affordable house. This can assist you if you couldn't get a mortgage for the full affordable house.
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This is true, but because you can't remortgage an affordable home without incurring the clawbackat the moment, it effectively means you can't increase your share in the property.
 
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