Shared Ownership in Numbers
If you’ve been keeping an eye on the property market lately, you’ll know that things are shifting again. The good news? Shared Ownership buyers are seeing signs of stability. Let’s look at the latest numbers, what’s behind them, and why this could be a good moment to take another look at your home-buying plans with Southern Housing New Homes.
A calmer picture from the Bank of England
After a rollercoaster couple of years, the Bank of England base rate now sits at 4%, which feels a lot more stable. You can check the official figures on the Bank of England’s website. This lower base rate helps shape what lenders can offer on mortgages, and it’s already feeding through to the Shared Ownership market.
What's happening with Shared Ownership mortgage rates?
Fixed mortgage rates have been slowly but steadily improving. That means monthly payments are starting to look a little more manageable for first-time buyers and Shared Ownership movers.
Here’s a snapshot of what’s out there right now:
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Leeds Building Society has a two-year Shared Ownership fixed rate at around 4.33 % for buyers borrowing up to 75% of their share. View details here.
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Furness Building Society recently reduced its shared ownership rates, now starting from about 4.24%, covering loans up to 95% of your share. See their update here.
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Newbury Building Society is offering a three-year fixed deal at 4.65%, which could appeal if you want a bit more security. More info here.
Just a few months ago, these same products were sitting closer to 5% or more, so it’s a clear improvement.
What this means for monthly costs
Let’s crunch a quick example.
Say you buy a 50% share of a £300,000 home (so your share is £150,000) with a 25-year mortgage at 4.33%. That works out to roughly £819.34 a month. If the rate were 5%, the payment would jump to about £876.89. That’s a difference of £57.55 a month, which could make all the difference to your budget.
The takeaway
Lower interest rates, even small changes, have a big impact on affordability. Combined with the fact that Shared Ownership already reduces how much you need to borrow, it’s easy to see why more people are re-running their numbers. For SHNH homes, that means the path to ownership is opening up again for a wider range of buyers.
Thinking about your next step?
If you’ve been waiting for the market to settle before buying, this could be the moment to explore your options. Check out the latest homes available and use the SHNH buyer guides to see what fits your budget.
Shared Ownership has always been about making homeownership more achievable. With the numbers now moving in the right direction, that goal is looking more realistic than ever, meaning you could be embarking on your new chapter sooner than you previously thought.
Talk to our team today to explore your options!