mortgage questions - primarily about the ownhome scheme

fogma

Me and my partner applied for the ownhome shared equity scheme before christmas and we got a phone call last week to arrange our interview to see if we are eligible.

I have a couple of questions for people who have already used the scheme or that might be able to offer me some advice on mortgage applications.

1. Do you have to take out the maximum mortgage that the co-operative bank offer you or is the mortgage negotiable at all?

The mortgage calculator I have used on their website indicates that we are entitled to a 112,000 mortgage (3.5 times our joint income) but that would mean us paying nearly £800 a month for the mortgage which is more than we want to (we pay just over £600 a month rent at the moment and don't really want to be paying much more on a mortgage).

Ideally we'd get a smaller mortgage and use the ownhome loan primarily to act as the minimum deposit, as we are looking to buy soon and aren't able to get a deposit together in our desired time frame


2. How much detail do the co-operative and ownhome go into regarding your current employment situation? (or any other banks for that matter!)

I have recently been made redundant and worked my notice (after I applied for the ownhome scheme) but the business is still running with a hope to selling it on. I currently still have full time work and would have a job if the business was able to continue. I also have work elsewhere to fall back on if needed. How much of a hindrance will this situation be to applying for the mortgage/loan and will I have to fully declare my redundancy even though I am still being employed full time?

Part of me thinks that I should get my girlfriend who has a secure key worker job to apply on her own and then just pay her half of the morgage etc. if her application was successful. I'm not sure whether this is legally possible and to get it in writing through a solicitor that I'd be entitled or responsible for any proceeds or debt from a sale of the property.

Any helpful advice would be really appreciated.

Thanks, J