Many people even in comparatively well-paid employment find that they can’t afford to buy a home in South Derbyshire. Although there are different ways of getting a first step on the property ladder the most usual is low cost home ownership.
The scheme enables you to buy part of a property, with a housing association owning the remaining share. Rent is paid for the share that you don’t own.
The minimum amount you can purchase varies between properties but it is usually between 30% and 50%.
The initial costs are broadly the same as if you were purchasing on the open market. You will therefore need to employ a solicitor, commission a survey and pay mortgage fees. It is also advisable to have enough savings for a mortgage deposit of 5% of the amount that you will be borrowing. It is suggested that you will need a minimum of £3000 - £5000 to meet these costs.
Most people will need to borrow money in the form of a mortgage to fund their part-purchase of a property. Mortgage lenders will be able to give you advice on the different types of mortgages that are available and the interest rates that will be fixed to the repayments.