Calculate Your Shared Ownership Affordability
Wondering how much you can afford when buying through Shared Ownership? Whether you're starting your homeownership journey or exploring your options, our calculator can help.
Shared Ownership allows you to buy a portion of a property and pay rent on the remaining shares, making homeownership more accessible. Our easy-to-use calculator takes into account the key Shared Ownership information such as the full market value of the home, the share you are buying and the deposit you are putting down. It also includes the mortgage terms, interest rate and duration.
All you need to do is enter your details below to get an estimate of your Shared Ownership affordability. This is a great way to start your journey and understand what kind of home you should look for when embarking on your search.
What can you do with your affordability estimate?
Our tool quickly gives you an estimate of what you could afford in a Shared Ownership home. It indicates monthly payments and deposit, helping you understand what share percentage you might be able to buy.
This calculator also helps with budget planning by breaking down potential costs, allowing you to prepare financially. Knowing your price range means you can focus your search and find suitable properties faster.
It also prepares you for the next steps, so you can approach mortgage advisors with a clearer idea of your situation. Understanding your affordability is key to starting your homebuying process.
Shared Ownership Affordability FAQs
When considering Shared Ownership in the UK, you typically need a deposit of 5% to 10% of the share you're purchasing, rather than the full property value. Your share size can generally range from 25% to 75% of the property's total worth.
The exact deposit amount may vary depending on your financial situation and the requirements your mortgage lender sets. It's also important to budget for additional costs like mortgage fees, legal fees, and potentially stamp duty.
To qualify for Shared Ownership, your annual household income needs to be equal to or below £80,000 (or £90,000 in London). The exact income required can vary depending on the location and price.
Monthly payments for Shared Ownership combine three elements: mortgage on your owned share, rent on the remaining share, and service charges. Your total monthly cost is the sum of these components. The exact amounts vary based on the property value, your purchased share, and mortgage terms.
Yes, there are costs to take into account beyond monthly payments. There are upfront costs such as reservation fee, solicitor's fees, mortgage arrangement fees, valuation or surveyor's fees, and stamp duty (if applicable).
You'll only need a mortgage for your share, not the full property value, potentially making monthly payments more affordable. However, fewer lenders offer Shared Ownership mortgages, which may limit your choices.
The mortgage amount and deposit are based on your share's value, often making the initial costs lower. Interest rates can sometimes be slightly higher than standard mortgages.
Lenders will consider both your mortgage and rent payments in affordability assessments. It's best to consult a mortgage broker experienced in Shared Ownership to explore your options.
The minimum share you can purchase through Shared Ownership is 25% of the property's value. The maximum initial share is usually 75%. However, these percentages can vary depending on the specific scheme and your financial circumstances.
The share you can buy is determined by your income and savings. You'll be encouraged to purchase the largest share you can afford and sustain. This approach ensures you benefit as much as possible from property ownership while keeping costs manageable.
Always check with the specific Shared Ownership provider for their exact terms, as policies can vary.
