Milton Keynes is an expensive place to live! As one of the country’s fastest growing ‘cities’* and with fantastic transport links it is becoming a desirable choice for many as the location to step onto the housing ladder - but house prices are growing.
Faye Grigson, a true Milton Kenian, wanted to keep her work and family close by, but also wanted to step onto the housing ladder whilst in her mid 20’s. In 2008, she purchased her first shared ownership property, a generous 1 bed flat in the desirable area of Caldecotte in Milton Keynes.
"I couldn’t afford a house with a garden so I opted for a flat close to a very large lake, a place for me to relax and unwind in the summer, I may not have a garden but I practically had my very own lake."
Faye purchased the flat at a 40% share through housing association Affinity Sutton.
“I was purchasing on my own and due to being quite young, I didn’t earn enough to borrow a full mortgage. However, I really wanted to avoid renting if I could and wanted to invest as much money as I could afford, so shared ownership was the best option for me at the time."
10 years on, Faye began to out-grow her flat and made plan to take her next step on the housing ladder, this time she opted to use the Help to Buy, equity loan scheme.
“A lot had changed for me over the 9 years I lived in my flat, I had changed jobs and met my long term partner. We wanted to buy something together and started looking at houses in 2016.
I had managed to bank a deposit of £20,000 from the sale of the flat – which sold in Feb 2017. However, I found £20,00 didn’t go very far in Milton Keynes. I therefore started to explore the option of Help to Buy, and we started to focus our search on new builds (which there happens to be quite a lot of in Milton Keynes)”
"Not only did the Help to buy equity loan provide us with a bigger deposit but it also meant our loan to value was better, so we could actually borrow more for the mortgage as well. This meant we could afford a good size 3 bedroom house, in beautiful, family orientated areas and have plenty of space for us to grow into."
Faye and her partner Liam moved into their house in the summer of 2017 and it’s safe to say they’re couldn't be happier!
Flat purchase price - £140,000
40% share = £56,000
Deposit = £5000
Flat sold in 2017 - £183,000
40% share = £73,000
Remaining mortgage = £41,000
Remaining profit = £32,000
House purchase - £305,000
Deposit = £20,000
Mortgage - £223,200
HTB Equity loan £61,800