top of page

Help to buy and shared ownership

Updated: Mar 2, 2021

Having a small deposit doesn’t mean you can’t buy. There are a few schemes from the government to help you onto the ladder and give you added support if it’s your first home.

Help to Buy

With Help to Buy, you can buy a home with just a 5% deposit, though you can still go for a bigger deposit with Help to Buy if you like. The government then gives you a loan for up to 20% of the property’s price (40% in London). This loan stays interest-free for 5 years.

More on Help to Buy

Shared ownership

Shared ownership means you buy a percentage share in the property, and rent the rest from a housing association. It means you only need to come up with a deposit for the share you want to buy – which can dramatically lower the amount you need upfront.

Read the T&Cs Get as clued up as you can on any scheme before you go for it. For example, Help to Buy is only available for specific, new build properties. And the government will own a share in your home which you’ll need to buy back, in addition to paying off the loan.

Another example for shared ownership: some housing associations don’t give up sharing – they cap the percentage you can own of your home.

Make sure you know what you’re buying, get independent legal advice where you can and talk to your broker if you’re not sure.

7 views0 comments

Recent Posts

See All

Do your sums. Then do them again. You’ll need a lot of money upfront for your deposit, ideally 10% or more – especially if you want the best rates. There are also loads of extra costs involved when yo

Stamp Duty Land Tax (aka SDLT or just “stamp duty”) is a tax you have to pay when you buy any UK property worth £125,000 and up. From July 2021 there’s a reduction for homes up £500,000. Stamp duty is

There are lots of different mortgage deals out there, but mostly, they fall into two different categories: fixed rate and variable rate. Here, ‘rate’ refers to the interest rate you have on your mortg

bottom of page