Shared Ownership/Guarantor Mortgage 1st Time Buyer

nicky29

Hi all,

Im 30 and stupidly have a very bad credit history so thought i couldnt get a mortgage. I earn £19500 a year and am looking at a 50/50 shared ownership scheme £60000 mortgage and £120 rent to housing association for the other £60000. My question is is there any way my parents who are in their late 60's with a £400 000 house (they have no mortgage) act as guarantor on the £60000 mortgage or even get a mortgage in their name for this property? Im not sure if they would be penalised due to their age? They have also offered to pay a £5000-10000 deposit if required.

Any advice would be great!

nicky29

I am not financially illiterate i have learned from my mistakes and i would not be dragging my parents down. Your comments are certainly not helpful. Any useful advice anyone?

nicky29

hi thanks for your reply! its not that i couldnt afford the repayments its the credit issue with getting a mortgage. Thanks

lynzpower

Cant your parents just give you the deposit- say 10k? as a gift? where are you living at the mo, how much can you save?

anniecave

one of the main criticisms with shared ownership is that a lot of these properties are very overpriced. If you avoid that pitfall then that is good

also watch what the service charges are and if they are included in rent or additional to.

Are you sure the rent for a £60,000 property at 50% would only be £120 - sounds low to me...

nicky29

Yes that is the figure quoted in the literature.

anniecave

when you say very bad credit history.. how recently is this? within the last year? two years? five years?

and what do you mean? ccjs ? missed payments? bankruptcy?

If CCJs have they now been paid off?

The effects of just missed payments fall off after a while. So if they were say 4 years ago you may still be able to get a mortgage with some mainstream lenders.

Have you tried contacting a specialist mortgage broker?

Not sure about the situation regarding your parents.. unless they are planning to live in the property with you then I don't think they'd be able to get a mortgage on a shared ownership property

Would it be worth you waiting for a couple of years when you have more deposit saved and your credit history is better?

Where do you currently live? How much rent do you pay at the moment? or do you still live with your parents?