The 45% rule is a common affordability guideline used in shared ownership. It means that your total monthly housing costs should generally not exceed around 45% of your net monthly income.
This includes your mortgage payment, rent on the unsold share, service charges and any ground rent where applicable. For example, if your monthly take-home pay is £2,500, total housing costs would usually need to stay below approximately £1,125.
This rule helps ensure the property remains affordable and sustainable over the longer term.
Your home may be repossessed if you do not keep up repayments on your mortgage.
You may have to pay an early repayment charge to your existing lender if you remortgage.