STEPHEN LEWIS finds out how to buy an affordable home in York.

THE problems that rocketing house prices have caused for first-time buyers struggling to get a toe on the housing ladder are well documented.

In York, according to independent mortgage broker Steve Broadley, of the Mortgage Advice Service, in Skeldergate, you'd be lucky to find anywhere much below £80,000. And if you're a young person struggling on an income of £12,000 to £13,000, that's going to be way beyond your reach.

Most mortgage lenders will extend a mortgage of up to four times your income. "Which means if you're on £13,000 you could perhaps borrow £52,000," Steve says. "That is not going to go far."

If you are desperate to get your foot on the housing ladder but can't raise anything like the £80,000-plus mortgage you're likely to need, however, don't despair.

There are a number of schemes operating in the city - and across much of North Yorkshire - that could just help.

One is shared ownership - a scheme operated by organisations such as the Joseph Rowntree Housing Trust, under which you buy a certain share of a property, perhaps 25 per cent or 50 per cent, and pay rent on the rest.

This means that you do not have to find such a large mortgage - although remember you will still be paying rent on the share of your home you do not own.

The other possibility is to get yourself on the list kept by City of York Council to buy a low-cost "discounted for sale" home.

A certain proportion of properties on new developments of a certain size in York have to be "affordable". About three-quarters of these will be for rent to people on the city council's housing list - but the remainder are for sale. This means that those who are eligible can buy them for 50 per cent of their market value. So if it is a two-bed flat worth £120,000, say, you will be able to buy it for just £60,000.

When you come to sell it on again in the future, you then sell it for 50 per cent of its market value at the time.

A third possibility is a Government-funded scheme called Homebuy, in which you find a home you like, pay for 75 per cent of it yourself, and the remaining 25 per cent is paid by a Homebuy loan. When you later sell the home, you get 75 per cent of the market value for yourself.

Any of these schemes can be a great way to take that first step on to the housing ladder, says Steve Broadley. So what properties are available- and how do you go about buying one?

Shared ownership

A number of housing associations offer such schemes, though the Joseph Rowntree Housing Trust is probably the biggest "player" in this field in York. The Trust has more than 300 properties across York that have been bought on a "shared ownership" basis - and these fairly regularly come on the market. There are new and older homes available, everything from flats and bungalows to two and three-bed houses. You can buy a "share" of anything from 25 per cent to 75 per cent in such a home, and will pay rent on the remaining share. If you buy a small share to begin with, you can increase your shareholding later by a process known as "staircasing", and can often even buy the home outright. When you come to sell, you will get your share of the full market value of the property. There are no strict eligibility criteria, and you don't need to be on a council waiting list to qualify - though if you have £500,000 in the bank, says the trust's leasehold and lets manager Nick Dennison, you're obviously not likely to be eligible.

To find out more, contact the trust on 01904 735000. You can then be put on its register, specifying the type of home and location you are interested in. Details of homes that become available which meet your requirements will then be circulated to you.

Discounted for sale

At the moment, these are mainly restricted to people who are renting a council or housing association home, or who are on the city council's housing waiting list. Even though you will get a property for 50 per cent of its market value, the city council will also want to be sure that your income is sufficient to meet the cost of a mortgage for that amount. When you come to sell your home, you receive 50 per cent of the market value at the time of sale.

Discounted for sale homes include one- and two-bed flats and town houses, mainly on new developments such as at Heron Court behind Lawrence Street and Foss Islands Road.

Some slightly older properties which have been sold on by their original owners also become available.

There is a shortage of supply at the moment, but the council expects to see more 'discounted for sale' homes becoming available over the next 18 months or so. To find out more, call City of York Council's housing development team on 01904 554071 or 01904 554199.

Homebuy

You find the home you want, pay 75 per cent of the cost, and receive a loan for the remaining 25 per cent. This scheme is still in the early stages, with Government funding for only a handful of properties available on this basis each year in York - but it is growing. You may need to be assessed and then make an application - but the criteria are probably less strict than for a discounted for sale home. Mainly administered in the York area by the Joseph Rowntree Housing Trust. Call 01904 735000 for more information.

Getting a mortgage

Some mortgage lenders may shy away from offering you a mortgage for a discounted for sale, Homebuy or shared ownership home, says Steve Broadley - although many of the bigger lenders will now consider them. Try a few lenders or, if you do have problems, contact an independent mortgage broker who should be able to fix you up.

Property Press tonight

Updated: 09:09 Thursday, November 06, 2003