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QI’ve been saving towards a house deposit for the past three years in the hope of finally getting on to the property ladder in London through shared ownership after years of renting. Is this really an affordable option for me? I’m nervous that my savings won’t go as far as I had initially hoped with costs on the rise.

Clara Dean, Mile End

AGetting on to the property ladder is a daunting process for any first time buyer, not made any easier by the costof-living crisis and interest rates being higher than they have been in previous years. The good news, though, is that you’re absolutely right –there are specialist schemes, such as shared ownership, designed to offer first time buyers an affordable alternative to privately renting or purchasing on the open market.

In a period of increasing mortgage and interest rates, shared ownership is a fantastic way to ensure your costs remain as low and that your savings go as far as possible. The Homes England Affordability Calculator is a useful resource for first time buyers to understand the breakdown of the average monthly costs for buying through shared ownership. When compared to the monthly costs of privately renting or purchasing a property on the open market, this Government-backed scheme offers first time buyers savings month-on-month as well as the opportunity to secure a home with a lower deposit.

Demonstrated by Homes England, the monthly mortgage repayments required for a shared ownership home tend to be considerably lower than the same costs for homes on the open market since your mortgage is based on the share that you are purchasing rather than the full value of the home.

As with buying on the open market, a mortgage adviser will be able to let you know whether a property is affordable for you and what your monthly repayments will be. Every housing provider that offers homes through shared ownership must appoint an independent mortgage adviser to conduct the affordability assessment. But, if you’re looking to get ahead and get an idea of what you could afford, using a mortgage calculator can provide useful initial guidance and give you an idea of the sorts of properties that might be accessible for you.

Compared to open market homes, purchasing through shared ownership means you can save 40% on your housing costs, or approximately £728 per calendar month compared to purchasing a home outright, and it is possible with an income that’s 45% lower too.*

For more information about Origin’s range of new build properties, please visit originhousingsales.co.uk/developments.

Simon Scott