The shared ownership mortgages are used most frequently under two separate circumstances. The first of these is when the shared ownership is when a couple lives together. This may be both married and unmarried couples. The mortgage itself is considered “shared” when there are two separate entities applying for the mortgage. The other instance when this shared ownership is used is when an individual may not have the capacity to make the payments or sufficient credit to be able to have the loan approved on just his or her own standing. When this happens, there may be a parent / guardian, or someone else that comes in and will add themselves to the loan to make up the difference in either insufficient credit or monthly payments or both.
Finding cheap home loans may be an alternative for the individual that is needing to rely on someone else to make the payments simply because if you can’t afford a home on your own, there’s a good possibility it is too much home. Of course each of us makes this decision at a personal level. When deciding, however, keep in mind that living within your means will bring about greater financial security than will having the latest and greatest and there is a psychological component to this with one’s self image and ability to manage their own future without a heavy reliance on someone else.
Being in debt is a form of bondage. It may be true what Tyler says in Fight Club: “Whatever you own ends up owning you”. Think about that the next time you’re considering buying something you may not be able to afford.
Ok, off my soapbox. When you’re thinking about home costs, one thing that becomes critical to your freedom is your cash flow. You can manage as long as you have sufficient cash flow. Getting to a point where you have more than you can afford can be dangerous not only to your credit score and history, but to your emotional well being also.