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Shared Ownership - Mortgages

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My deposit is coming from family who live abroad. Will the lender accept this form of deposit for shared ownership?

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.

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What is adverse credit / a poor credit history? Will it prevent me from getting a shared ownership mortgage?

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.

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Can I use a guarantor for my shared ownership mortgage?

No, under the terms of the scheme, this will not be permitted.

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My partner and I are eligible for shared ownership, but we just want my name on the mortgage – is this allowed?

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.

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I dont have permanent rights to remain in the UK, can I get a shared ownership mortgage?

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.

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Can my parents be on my shared ownership mortgage with me?

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.

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Why is the housing provider asking for a higher deposit than the mortgage lender?

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.

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As a household we earn more than the maximum threshold, can we just put one of us on the mortgage?

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.

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When should I start looking for a shared ownership mortgage?

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.

 

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Share to Buy Ltd is authorised and regulated by the Financial Conduct Authority. FCA register number 306800. You can find more detail on our status in our Initial Disclosure Document [109k] and Terms of Business.

For further information, contact us or write to: Share to Buy, PO Box 11998, Sudbury CO10 3BS. Registered in England and Wales no: 04909788.