We have built a Shared Ownership Affordability Calculator to help you quickly assess what you can afford before diving into the home purchasing journey.
Our calculator is designed to give you a clear picture of what you can realistically afford in today's housing market.
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.
Affordability Calculator
This calculator will indicate the monthly repayments and deposit you will need for your Shared Ownership home. Please note these will only be approximate figures for guidance purposes.
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The quoted figures are indicative only and are not part of a mortgage offer. They are to be used to give you an idea of how much you could borrow based on the information provided.
N.B. Monthly rent has been illustrated at 2.75% of retained equity. Your lease will detail the exact rate and any increases. Monthly Mortgage Payment is based on the total payment for interest and capital repayment over the desired term. Total Monthly Cost excludes Service Charge, which varies across our developments, the Peabody Sale Team will make you aware of service charges that need to be taken into account. Additional terms and conditions may apply. Speak to an Independent Mortgage Advisor for more details.
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 provides an indication of 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.
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Shared Ownership Affordability FAQs
How much deposit do I need for Shared Ownership?
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.
What income do I need to qualify for Shared Ownership?
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.
How are the monthly payments calculated for Shared Ownership?
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.
Are there any additional costs I should be aware of with Shared Ownership?
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).
How does Shared Ownership affect my mortgage options?
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.
Is there a minimum or maximum share I can purchase?
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.