Shared Ownership - Mortgages
You should check with the lender – but note that most lenders will require any non-repayable gifted deposits to come from blood relatives from within the UK.
Adverse credit is a situation where you do not have normal credit. It is a term that is used to describe borrowers who have defaulted and been unable to satisfy the terms of a credit agreement. Those with an adverse credit history usually have several negative items on their record, such as late payments and defaulted debts.
Each lender determines what risk is acceptable, but having adverse credit is likely to make you ineligible for shared ownership. If you are unsure about your credit rating there are a number of agencies which allow you to check and, if necessary, dispute anything in your credit history. Typing ‘credit agencies’ into a search engine should help you find these agencies.
No, under the terms of the scheme, this will not be permitted.
The housing provider will carry out an assessment based on the household income and if your joint income is above the threshold, it is unlikely you will be accepted on to the scheme. You may be able to find a mortgage based on just one of your earnings, but in that case the lender would only accept one of your names put on the lease.
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 or three years remaining on your visa and a deposit of 20% of the share. If you are able to demonstrate that you can get a mortgage and maintain the payments, you may be able to buy through shared ownership. You will have to undergo a financial assessment with a financial advisor working with the housing association you buy through to assess this.
No, only those who are party to the shared ownership lease can be on the mortgage application. All applicants must live at the property as their main residence. However, your parents may wish to assist with the deposit by way of a non-repayable gift.
The housing provider has to carry out an eligibility assessment based on the Homes and Communities Agency affordability calculations. This assessment will determine the deposit amount they require before they offer you a property. It may be that this deposit is higher than the minimum mortgage lender requirements.
The housing provider will carry out an assessment based on the household income and if it is above the threshold, it is unlikely you will be accepted on to the scheme.
You will not need to do this until you have chosen a property to buy. Your housing provider will put you in touch with a financial advisor to help you with a mortgage, or you can search for a mortgage online with Share to buy.
31st December 2016
For those looking for Shared Ownership homes in the south of England, we've had more recent additions which may be of interest.
Click the following link to read on and see these new Shared Ownership houses and apartments which were added to our website in late December. Read on
Click here to begin your search for a shared ownership property in any area.
5th December 2016
While you are looking for a suitable property and going to viewings, there is one task that you can sensibly start, so that when you have been offered a property, your mortgage application is not delayed. All mortgage applications will require that you provide documents as part of the process so start getting your documentation ready.
7th November 2016
We've teamed up with WhatHouse? to bring you Your Guide to Shared Ownership. Inside you’ll find all you need to know about the scheme: whether you are eligible, the process of finding and purchasing a Shared Ownership property, the pros and cons of Shared Ownership and much, much more.
20th October 2016
Read our latest blog from our Mortgage Expert Stephen Dwelley. In this blog Stephen answers the frequenlty asked questions from first time buyers trying understand how much they can borrow for a mortgage and what is affordable.