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.
20th March 2017
Saturday 18th March saw over 4,400 attendees to London’s No.1 event for first time buyers, the London Home Show Spring 2017.
With 47 exhibitors under one roof, the event offered attendees the opportunity to speak to the biggest names in the first time buyer sector, including housing providers, financial advisors, legal experts and more. Attendees could register their interest in the properties and services on offer from exhibitors, and thousands of leads were generated over the course of the day.
15th March 2017
This guest blog comes from Southern Home Ownership, sponsors of the London Home Show Spring 2017.
Southern Home Ownership is part of Southern Housing Group; one of southern England's largest housing associations, with a growing portfolio of over 26,000 homes across London and the South East. We’ve been helping buyers onto the property ladder for over 30 years, making home ownership a reality for more than 4000 households.
15th March 2017
Our latest guest blog comes from L&Q, sponsors of the London Home Show Spring 2017. The blog, by L&Q Regional Sales Director, Lucy Chitty, looks at L&Q's new Shared Ownership awareness campaign, PricedIn Living.
9th March 2017
Today's guest blog is from Tim Seward Head of Property Sales at London Home Show Spring 2017 at Latimer:
First-time buyers struggling to raise enough cash for a deposit to buy a home of their own are increasingly turning to alternative ways of achieving the dream of home ownership.
Although shared ownership is by no means a new initiative – in fact it has been around since the early 1980s - it’s becoming more mainstream and an accepted part of the UK housing market. A recent report showed that the number of shared ownership purchases has risen by more than 130 per cent in six years.