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 November 2017
Is saving for a deposit holding you back from moving in to your own home? Saving money can be hard, but with these ten money saving apps available at your fingertips, you’ll soon discover how to put away the pennies and you’ll be ready to move in no time.
20th September 2017
Shared Ownership Week returns for its fifth year, 21st - 27th September. Shared Ownership week raises awareness this home ownership scheme which offers a life line to thousands of first time buyers.
19th September 2017
Countdown to the London Home Show Autumn 2017: Our sponsor Crest Nicholson give you the low down on their fantastic development Dylon Works, available via Help to Buy London.
18th September 2017
Countdown to the London Home Show Autumn 2017: Hear Marco and Olga's story about buying their first home for their young family with Notting Hill Sales.