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The Pro's and Con's of Shared Ownership Mortgages (UK) - YouTube
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hi it's malcolm i'm joined by my
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colleague wayne and we could say we're
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going to talk about
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shared ownership mortgages um so shared
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ownership has been around for
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quite a long time wayne um would your
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typical type of
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customer be for a shared ownership
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purchase i think typically people who
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obviously wanting to get onto the
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property ladder but may be struggling
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either income wise or
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deposit-wise or whatever to be able to
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to actually buy a home outright of their
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own
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it gives them an easier way into the
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market really a
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more cost effective way into the market
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and
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i suppose over recent years uh
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let's say last 10 maybe even 20 years
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we've seen property prices generally
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kind of get out of the reach
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of first-time buyers that's right and so
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by buying a share of a property it maybe
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allows
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uh you know maybe a young family for
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example to buy the sort of house that is
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that they couldn't afford on the open
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market but that gives them
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the accommodation that they need to
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house their family i've got young
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children or whatever
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whereas on the open market for a similar
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price they might be able to only afford
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to buy a much smaller house that sort of
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thing
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and i suppose that's because over the
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years kind of
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we haven't built enough properties in in
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the uk supply and demand has
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forced the prices up but really salaries
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have never really risen
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at the same time growth speed again
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that's right and also you know a lot of
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the
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the traditional um social housing like
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council housing a lot of that's been
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sold off so there's not as much of that
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available
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and the housing associations who will
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run the shared ownership schemes largely
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um have gone somewhere to sort of fill
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in that gap
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yeah we'll cover right spy in a separate
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video always a controversial one
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but in the 1980s a lot of people did
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take advantage of that
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and get onto the ladder and because
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those properties have
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been brought up and the governments have
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not really built new council houses over
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the years
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that's really one of the reasons again
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why the prices have kind of uh
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shot up so in terms of a customer
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first-time buyer then
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i suppose this might come in for my key
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workers so if you've got um
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some work maybe for the nhs
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um and they're they're in a part of the
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country where property prices are high
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this is
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a good routine for them this is it you
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know if you think about
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somewhere like london for example where
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you know there's a massive need for key
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workers
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and yet they're not on necessarily the
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salaries that would
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enable them to to pay london prices on
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properties this is
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you know an ideal sort of half warehouse
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solution for for a lot of people in that
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situation
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okay and then if you're interested in
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taking out a shared ownership mortgage
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then
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what would you do first would you um try
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and get your mortgage in place
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first would you contact a housing
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association first what would be the
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running order
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for someone interested in this i would
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always say talk to
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you know talk to an advisor first but
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because you need to know whether you can
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actually borrow anything
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at all um so i i would always look at
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you know
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doing the groundwork in terms of finding
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out what your borrowing capacity might
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be
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probably run the two things alongside
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you know keep an eye on what the local
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housing associations are doing what sort
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of prices they're offering
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um because one of the aspects is what
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a mortgage advisor would need to take
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into account what rent you're going to
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be paying on the share that you don't
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own
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so it's always trying to get a balance
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between making sure that it is
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affordable and also making sure that
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there is
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property available but i'd always start
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with an advisor just to make sure that
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you can actually you know you can borrow
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enough to do what what you'd
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ideally like to do yeah these
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technologies can be more difficult to
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obtain if you've got
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bad bad credit as well sometimes
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absolutely yeah and you would go about
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finding this type of property
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by contacting house housing association
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or just looking on on right move for the
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zoo but there's the
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shared ownership properties are
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advertised on there as well
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so in your experience of doing shared
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ownership mortgages when
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um what typical percentage do people
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enter the market is it 25 percent
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probably i would say probably more
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commonly 50 and certainly
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my personal experience but as you say it
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can be 25 it can be 50 it could be 75.
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i think the things to look out for that
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lenders are particularly looking out for
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is
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um do you have the ability at some point
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to become a hundred percent loner
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because some of the housing associations
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don't allow that because they want to
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keep this
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you know to help other people and get on
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the housing ladder sort of thing so
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that's something that's important
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um to watch out for um staircase and as
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it's known
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that you can increase your share over a
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period of time
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and then i suppose it's the aspiration
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of people taking out the shared
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ownership mortgages to do that staircase
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and then is it to get to 100 ultimately
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i think ideally you know as
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as time progresses they would like the
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idea of
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that that is going to become their own
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home wholly owned
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at some point yeah okay and if you are
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interested in this
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um typically customers have to put down
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small deposits on this type of property
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because they're already buying a share
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and it might only be um ten percent five
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percent or sometimes zero percent on the
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share that they're buying so it is a
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good way for people who are struggling
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otherwise
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to get onto the property ladder so if
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you're looking for some
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some advice or insurance ownership
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mortgages please don't do not hesitate
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to get in touch and we'll be happy to
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help you
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thanks for watching if you're in the
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market for more goodbyes please drop me
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an email
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malcolm ukmoneyman.com or give us a call
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and please subscribe to our channel
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