Shared Ownership Eligibility

If you are looking to purchase a Shared Ownership property in England, the maximum household income is £80,000. In London, your annual household income must be less than £90,000.

The maximum household income is the income of any member of the household involved in the purchase. This means if you are buying with a partner, the household income would include both of your salaries and any other income you receive.

There is no set minimum income allowance for Shared Ownership as a whole. However, each property will have its own valuation and the housing association will determine the minimum income required for that property to be affordable to eligible buyers.

Generally speaking, it is possible to get a mortgage even if you’ve had your property repossessed in the past. However, this will depend on each individual lender and their criteria. We would recommend speaking to an independent mortgage advisor who can assess your case.

While poor credit history doesn’t rule out the possibility of buying a home through Shared Ownership, you would need to be able to take out a mortgage on the property. If your credit history stops you from doing this, then you would not be able to proceed. With this in mind a credit check will be undertook on each application.

We would recommend speaking to an independent mortgage advisor who can assess your case and outline your budget to help you in your search for a home. Credit score is taken into consideration and you’ll get a better understanding of this during your assessment.

When referring to rent arrears, this is the legal term for a debt that is overdue or missing.

As long as you can show at least three years of self-employed accounts, and providing your income is sufficient, you should be able to obtain a mortgage.

You should seek independent financial advice about suitable mortgages and about managing the ongoing costs of homeownership if your income varies from year to year.

As long as you meet the relevant eligibility criteria then you can still purchase a Shared Ownership home during retirement. In most circumstances, you would either need to pay for your share in cash or the mortgage you’re getting would be based on the pension that you receive.

Benefits are generally not included as income when assessing your affordability. Some mortgage lenders will accept benefit income if it is permanent, meaning that it’s not subject to review, but there does usually have to be some earned income as well.

Previous assessments in regards to social housing shouldn’t cause any issues when applying for a Shared Ownership home. However, allocation will be down to the relevant housing association if there is more than one possible purchaser for a property.

You may be able to apply for a mortgage, but you will need to demonstrate that you have a least two years remaining on your visa and have a deposit of 25% of the share that you’re buying, or three years remaining on your visa and a deposit of 20% of the share.

There is no requirement that joint purchasers are either family members or in a relationship. However, apart from any personal considerations, it would be sensible to have a robust legal agreement drawn up by your solicitor, covering such points as what happens if one of you is unable to maintain the financial contributions or wishes to leave the arrangement.

Remember that with a joint mortgage, all parties are equally liable which means that if one of you can’t or won’t pay, the other is legally responsible for the whole amount.