Shared Owneship advice please.

FirstTimeBuyer2009

Hi all,

I am a first time buyer looking at a shared ownership scheme.

My situation is fairly complicated but based on what I have read this may be an option

Firstly I would be looking at buying with my wife our combined income is 47k, however I have a CCJ in my name so I cannot be on a mortgage.

I would like to know that if we get the shared ownership agreement in our joint names ( I cannot see anywhere that bad credit will affect this) could we just get the mortgage in my wife’s name as her sole income of 21k doesn’t qualify for the shared ownership scheme but from what I can see she could get around 75k mortgage based on the same salary.

Any ideas would be greatly appreciated, and if you would need some further information on our situation let me know,

Thank you all in advance.

Cannon_Fodder

Being married, your existing financial ties will mean the lender will probably take you into account even if a sole application is made.

Go to a mortgage broker to see what lenders might not look to hard at non-applying spouses, or might ignore the CCJ.

Mrs_Bumble

How much is the CCJ for? Is it settled? When did it go onto your credit file.

To my knowledge if you enter into a joint shared ownership agreement then the mortgage has to reflect the same details for the application and the title deeds.

haras_nosirrah

Hello

I am afraid your wife won't get a mortgage under shared ownership for anywhere near that amount (I do financial assessments for a housing association). It is a very strict 3.5x single or 3x joint minus the rent amount and any debts - credit card payments taken and 3% of the balance (annualise this figure and take off salary)

for example if she has a salary of 21k, no other debts and the rent and service charges together are £250 the calculation would be as follows

(£250x 12 = £3000)

£21k - £3k = £18k x 3.5 = £63k

If the lenders know you are in the property or if you have any children this would go down further.

And yes if you want to be on the house deeds you have to be on the mortgage.

The other thing to note is if you are buying a new build property you need a minimum 15% deposit of your share to buy

FirstTimeBuyer2009

Thanks for all your help, the CCj is for 16k in 2007 and it was settled after we argueed it it should have be arround 6k. but the court date passed putting the ccj at 16k on my record.

I guess we don't have much choice then, we need to carry on renting.

Thanks again.