Keepmoat.com Assets Purchasers Guide to Home Reach | Page 6

Home Reach . . . A more affordable way to buy
Smaller deposit requirements and lower monthly payments make it easier to buy the home you've
always wanted.
You decide how much of your home you would like to buy, with shares between 25% and 75%.
You are able to purchase your share with either cash savings or by taking out a mortgage. If you are
taking out a mortgage to finance your share, then you will typically need to allow for at least a 5%
deposit. The larger your deposit, the lower your mortgage payments will be.
On the share you don’t own, you will pay rent of 2.75% of the unsold value. This will be paid monthly
by direct debt.
Examples . . .
Property Value
£150,000 £200,000 £250,000
£75,000 £100,000 £125,000
10% Deposit £7,500 £10,000 £12,500
Mortgage (3.5% interest rate) £67,500 £90,000 £112,500
Monthly Mortgage Payments £341 £455 £569
Monthly Rent £172 £229 £286
Monthly Combined Cost £513 £684 £855
£20,000 £26,000 £33,000
50% Share Value
Indictive Income Requirements
Figures above are based on a 25 year repayment mortgage and a Home Reach lease with an initial rent of 2.75% on the unpurchased property value
increasing by RPI + 0.5% each year. Your home may be repossessed if you do not keep up with payments on your mortgage or shared ownership
lease. Additional service charges may be payable on properties with communal facilities or services. You will also need to consider the
responsibilities and associated costs involved with owning a home (such as insurance and maintenance).
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