How this is worked out

Explaining the calculations we used to produce examples of monthly expenses for NewBuild HomeBuy (shared ownership).

These are the figures we used to work out the examples of monthly outgoings that are shown on what you will pay for your home.

Mortgage example

The examples are based on a capital and interest mortgage for 100 per cent of the price over a term of 25 years without tax relief.

The interest rate for the mortgage examples is 7 per cent and the annual percentage rate (APR) will depend on the amount of the loan and the costs linked to it.

The interest rate is based on the approximate level in October 2008 and interest rates may go up or down.

Please note

When you contact a building society, bank or insurance company for a mortgage, you should always ask for a written quotation.

Make sure you understand the type of mortgage you're being offered, as well as:

  • the interest rate
  • the APR
  • details of any other associated costs and fees.

Remember the total cost of borrowing a mortgage. If you stay in the home for the full term of the mortgage you'll make 300 payments on a 25-year mortgage.

  • For example, if you have a mortgage of £100,000, you'll make 300 repayments of £715 (at an interest rate of 7 per cent) and your total cost of borrowing will be £214,500.

Rent example

The rent is based on a percentage of the property we own.

The examples use 2.75 per cent a year.

Service charge example

The examples assume you're buying a flat, so they include an estimated service charge of £1,500 a year. This would include your buildings insurance and maintenance costs.

Please note

Service charges can be higher or lower than this amount. If you buy a house, there is not normally a service charge although you would pay for buildings insurance and other maintenance costs.

Council tax example

The examples assume you pay council tax of:

  • £1,100 a year on a property value of £250,000
  • £1,250 a year on a property value of £350,000.

Please note

The actual figure will depend on where you buy and may be higher or lower than this amount.

More information

For more information about New Build HomeBuy, or how our examples were worked out, contact us on 020 8357 4444 or sales@nhhg.org.uk.