The housing company retains the remaining portion that the buyer rents to the association. This system offers qualified buyers the opportunity to get a foot on the ladder when real estate is on the open market outside the budget, or to buy in a more expensive and central location. If the house was sold in the table below for £420,000, you will receive £252,000 (60 %, from your mortgage and cash deposit) and pay £168,000 for the loan (40 %). You should pay off your mortgage with your share of the money. You can show a seller or housing company that you can most likely get the necessary mortgage and therefore be a serious buyer. Some housing companies require you to make up for an agreement in principle before offering you real estate.