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HOME RUN
Louise bought a £130,000 one-bed flat in a new development in Trafford with the help of a Shared Ownership scheme, government Help to Buy Isa and a tenacious approach to saving
- Tara Evans
SINGLE girl Louise Blissett managed to get on the property ladder despite only having a deposit of £10,000 - and she wants to encourage others to do the same.
The 30-year-old bought a £130,000 one-bedroom flat in a fancy new-build estate in Trafford earlier this year, with the help of a Shared Ownership scheme, a government Help to Buy Isa and a tenacious approach to saving.
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Louise, who was earning £27,000 a year at the time as a management accountant, had been saving to buy a property with her boyfriend, but after they split in August last year she found herself unable to buy.
She didn't want to rent and ended up staying with friends.
It wasn't until she visited a first time buyers show that she seriously looked into Shared Ownership schemes.
She told The Sun Online: "I thought I'd never be able to buy one my own.
"I couldn't get a big mortgage because I was single.
"Maybe I would have got something but it would have been run down or I'd be a million miles away from my friends."
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Shared ownership schemes allow home buyers to buy as little as 25 per cent and as much as 75 per cent of the homes value, thorough a deposit and a mortgage from the bank.
Buyers then pay rent to the property firm which has a stake in their home.
You'll need to earn less than £80,000 a year outside London or £90,000 if you live in the capital to be eligible for the help.
There are hundreds of schemes across the country but Louise didn't wait around to hear back from Plumlife.
They had shown her a brochure of a property which looked perfect - and crucially they had come back to her with mortgage deals that she could afford.
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She phoned up their office every Monday to check on how the development was going.
Once the property was ready to view, she was first in line and eventually completed the purchase in March earlier this year.
"I felt so elated. It was so ironic that I felt so free because I was tying myself down to 30 years of mortgage payments," she added.
"You finally get the space you just wanna roll around it because it’s all yours."
Louise secured a two-year fixed mortgage with a 40 per cent stake in your home.
She used £1,200 from her Help to Buy Isa towards the cost of the deposit and stamp duty.
Louise's top tips for buying a home
LOUISE might have only had a £10,000 deposit but it was enough to secure her first step on the property ladder.
Here are her top tips for owning a home
- Help to Buy Isa - Earn up to £3,000 towards a property. You can earn up to 2.27 per cent interest tax-free and the government adds 25 per cent on top. You can save up to £1,200 in your first month, then £200 a month after that. You need to save at least £1,600 to get the bonus (and you'd get £400 extra).
- Set your self a savings goal and go for it - "Once I got saving it was really addictive and I was motivated. I did extra work on the side to get more income. Anyone can do it. I used to be terrible with my money and I loved shopping. Once you've got a £1,000 in the bank, you're just dying to round up every spare penny."
- Shared Ownership schemes - There are hundreds around the country like the one Louise used. She said: "I couldn’t believe it. I have always lived and worked in Trafford and the
development was fantastic – such a peaceful, pretty place to live… and within my budget!"
Louise now pays £400 a month which includes a £151 mortgage payment, as well as a £80 service charge.
The remaining £168 goes on rent to Plumlife own the remaining 60 per cent stake in her property.
It was important for Louise to be near her friends because she knew she would be living alone.
She said: "I’d looked in other areas...much further away. I would have been excluding myself and I’d have been lonely.
"I was really priced out of the market."
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"But I knew The Acorns was perfect. It's on a really quite nice estate in a nice area and on the edge of country lanes.
"It's close enough to everything you need...close to the shops and a short taxi ride away to the pub."
She hopes to own 100 per cent equity in the home as soon as possible.
As Louise has just got a new job with a pay rise, she'll be able to gradually scale up her percentage share.
She said: "It’s already gone up in value and I’ll have some equity for myself. It will allow me to buy more and get a bigger mortgage."
How does Shared Ownership work?
WE explain how a Shared Ownership scheme could help you get on the property ladder.
It is available to non-homeowners who earn £80,000 a year or less (£90,000 in London).
People can buy a share of a home from a housing association and continue to rent the remainder.
Buyers will need a ten per cent depositas well as money to cover stamp duty and other fees.
You’ll also need to find a mortgage lender that is willing to lend on shared ownership properties.
When it comes to selling the property the borrower must repay the equivalent rise in equity.
For example, suppose you bought your home for £100,000 and they had a 60 per cent stake in the property. If when you sold it the value had risen to £120,000, you would need to repay 60 per cent that value not the original value, which comes to £72,000.
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