shared ownership

wayne99

Hello,

I have a few questions iam hoping someone can help with.

Ok, we currently rent from a social landlord, we are looking to buy in the near furture and are considering our options...

One option we are looking at is open market shared ownership, now the question i have is:

if say a property was worth 200k market value, and we wanted say a 50% share so 100k mortgage would we still need to stump up a deposit ? on the 50% we would own ?

If we did not need a deposit can anyone suggest lenders ?

I do have some adverse from 2 years ago on my file which obviously will cause issues but we can wait for a good few years if needed, i have looked into the eligibility for shared ownership and we do qualify bar a mortgage from a high street lender i guess.

can anyone suggest some mortgage providers who would consider applicants with deafults ? and a CCJ from 2.5 years ago that is settled.

I appreciate that this just may not be an option for us at present but at 30 years old and alot of old debts now settled we are now in a position where we would feel secure with a home purchase.

thanks in advance

wayne.

smurf83

when i purchased mine I did not need a deposit on the 40% share in a £129,000 flat it was 3 years ago and with Halifax so things might have changed now.

wayne99

thanks..

can anyone else shed any light on this subject

laura_d

I would recommend that you talk to an Independent Financial Advisor – perhaps find one who doesn’t charge (instead the IFA will take a commission from the mortgage provider).

I bought a 50% share of my property mid-2007. I secured a 100% mortgage and at that time they seemed quite readily available. Things seem to be a bit more difficult now and it would appear most banks will require a deposit on the share you wish to buy, i.e. a 15% deposit on £100,000, being a 50% share of the property. However, an IFA should know the market and could advise you of any deals out there.

In terms of the adverse history, again a good IFA should be able to advise you on this. Some banks might accept your mortgage application providing your credit history has been good since. However, given the current economic climate, a lot of banks are being quite risk averse at the moment and this might be a stumbling block!

Best of luck!