Shared Ownership Mortgage

smuir00

Hi,

I have the chance to buy into a house with shared ownership with the current owner, I have a reasonable level of income but have had credit problems in the past.

Does anyone have any advice as to where to start, mortgage lenders to consider and any other major pit falls that I need to be aware of going into this deal ?

Any and all help appreciated, I'd rather know any likely problems now than later !

Thanks

Simon

Mrs_Bumble

How do you mean buy into a shared ownership with the current owner?

You need to clarify this.

What sort of credit problems in the past?

smuir00

Hi, we are currently renting a house and the owner has indicated that they would consider selling the house to us, we are not in a position currently to buy the whole house (value about £480k) so they have suggested that we may wish to consider shared ownership.

I currently earn approx. £60K pa and have been working for the last 14 months (my wife is unable to work at present), prior to that I was made redundant a few times and a few debts built up, these are steadily being cleared but we probably still owe about £6k in total. The main outstanding debt was from a credit card (£4k to be cleared).

Does this answer your question ?

Simon

opinions4u

I doubt any lender would advance you money against a shared ownership scheme that isn't set up with a recognised provider (e.g. housing association).

Unless I've missed something glaring, this is a non-starter.

Mrs_Bumble

I haven't heard of shared ownership schemes being run by private landlords, some private developers but I haven't heard of private landlords doing this. So that makes me nervous on your behalf.

Try the local shared ownership agent in your area as well you will find them here http://www.shared-ownership.org.uk/

Also have a word with Shelter http://england.shelter.org.uk/ I would have thought that if it is possible they will know and because of the work that they do they will know of any pitfalls.

Let us know

Bufger

with 60k PA you would be better off moving into a cheaper accomodation for a while and saving. You could potentially save alot in a small amount of time and get a big deposit. (less to lend, less risk for the lender, credit wont matter as much etc)

Mrs_Bumble

Should also ask at this point what sort of credit problems in the past because of course that could put any sort of mortgage in jeopardy? Have you seen a copy of your credit report what is showing?