Benefits of shared ownership

People looking to get their first mortgage could benefit from entering into a shared ownership agreement.

That is according to the National Housing Federation (NHF), which says that the schemes can play a "vital role" in the UK housing market.

Many first time buyers are struggling with housing affordability and, with this in mind, the NHF says that shared ownership schemes offer an element of relief.

"Increasingly first-time buyers are turning to shared ownership deals by housing associations. You can actually buy a stake in your property and the rest is owned by the housing association," commented a spokesman for the NHF.

"It works out cheaper than in the conventional way of buying it outright. You can start off buying a share in your property, say 50 per cent or 75 per cent, and actually increase your ownership stake over time.

"You move up towards owning the place outright, but you do it at the pace that you're comfortable with and able to do," he continued.

First time buyers were given a boost this month when the Bank of England chose to maintain the base rate of interest at 5.75 per cent.

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