| For many people, the question, "Can I afford to buy my own home?" really should be: "Can I afford not to buy?" Renting is right if interest rates are high or threaten to rise steeply, or if you have other doubts about your future career path. Compared to renting, however, buying a property makes more economic sense in the long term. |
| Issues to consider |
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| Shared ownership schemes If house prices in your area make it difficult to afford your own home, find out if you can take advantage of a shared ownership scheme. Under this, you raise a mortgage to cover a proportion of the value of the property, and pay subsidised rent on the balance. You can increase your stake in the property after a year, and carry on doing so until you are the full owner. Shared ownership schemes are run by housing associations and local councils. Most have long waiting lists and may give preference to those already renting council or housing association accommodation. Each scheme has different criteria, but prospective buyers will generally need a regular income, and be required to complete a means test. Shared ownership loans are available from around 20 lenders, including several high street names. Most offer a range of loans, including fixed and discounted rates |
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