Mortgage for self employed on shared ownership with an old default

dean82

Hi,

Im very interested in some propertys in our town offered on a shared ownership scheme.

The full value is £295000. The ammount that we would purchase would be 40% at 118,000. So after putting down a £11,800 (10%) we would need to obtain a mortgage for £106,200.

I have a default on my credit file from Aug 2005. The balance was £2600.00, I paid this monthly for a while and then paid a settlement figure in Nov 2009. It shows on my credit files from both experian and equifax as a 'settled' status.

I have recently obtained a credit card with a small limit to try and boost my credit rating.

I am self employed and run my own limited company. I earn arround £35000 and my partner works part time and earns £10800. I am 27, my partner is 29 and we have a daughter (not sure if this is relevent but just thought id add it incase).

When I opened a new company account with barclays, I also opened a personal account. I was only allowed a cash account as apossed to a current account due to the default on my credit file, this was before i obtained a credit card from Capital one (mentioned above).

Is it possible to obtain a mortgage still even thought its a shared ownership property, im self employed and have a default on my file from Aug 2005 that will still show until Aug 2011?

Who are the more likley lenders?

Will I find a broker usefull?

The propertys wont be ready untill Jan 2011 but there might be a chance to by of plan at some point at the end of this year.

We currently waste a fortune on rent and these homes would be perfect for us.

Any help and advice will be appreciated.

Thanks...

_Andy_

How long have you been SE for? Do you have accounts?

dean82

I have been self employed for 6 years. I have 3 years of accounts at the moment (from when i was a soletrader). Have only been set up as Ltd company for a year so have not filed accounts for this company yet.

dean82

dean82 wrote: »

I have been self employed for 6 years. I have 3 years of accounts at the moment (from when i was a soletrader). Have only been set up as Ltd company for a year so have not filed accounts for this company yet.

anyone????????

dean82

anyone????????????????????????????????????????????????????????

brit1234

highly unlikely only a couple of banks do shared ownership. better off renting till prices fall, improving your credit rating.

Shared ownership is a scam

property.advert

Avoid low percentage shared scams as the rent you'll pay on the bit you do not own will cripple you. Only use as a last resort with a quickly improving personal financial situation which will allow you to buy out to 100%.

Save until Aug 2011 when you will be credit fault free and remember that you can file your company accounts earlier than 12 months after adjusting your company's end of year. Quite simply, you will have to lose masses in tax to get a mortgage and would be better off not declaring that income and saving the money to get a decent deposit.

You cannot afford a £300,000 home on your salary.

FraudBuster

might be a chance to by of plan at some point at the end of this year.

Hang around these forums to learn about the off-plan scams.

dean82

property.advert wrote: »

Avoid low percentage shared scams as the rent you'll pay on the bit you do not own will cripple you. Only use as a last resort with a quickly improving personal financial situation which will allow you to buy out to 100%.

Save until Aug 2011 when you will be credit fault free and remember that you can file your company accounts earlier than 12 months after adjusting your company's end of year. Quite simply, you will have to lose masses in tax to get a mortgage and would be better off not declaring that income and saving the money to get a decent deposit.

You cannot afford a £300,000 home on your salary.

I know the rent on the 60% that I wont own and its not that bad.

Not declaring work to save paying tax is only going to make it look like I earn less wich will in turn mean I cant borrow as much.

I'm not in a posistion to buy 100% so shared ownership is perfect for me.

In my opinion its not a scam. Just wondered who are the more likley lenders for someone in my posistion.

dean82

FraudBuster wrote: »

Hang around these forums to learn about the off-plan scams.

Why is it a scam? Just securing a home before the buildings complete.

I dont think that all shared ownership schemes and buying off plan is a scam. Some people may have had bad experiences but they cant all be the same.

The scheme its self isnt the issue I raised, its the credit score and mortgage lenders Im seeking opinions on.

Regards,

Leon_W

Realistically it isn't going to happen......

Very few lenders will even entertain a Shared Ownership arrangement.

New Build properties are treated as overpriced and will usually be valued on a second hand basis.

90% LTV is still extremely difficult and rates are high.

You have a large default.

Now, in isolation, one of those could probably be worked around but all of them together ? Not what you wanted to hear I'm sure but it's my honest opinion.

Regards