Shared ownership mortgage, poor credit history

justabitskint

Hi guys

I'm now near enough debt free and in a position to look for my first home buy. I have a poor credit history, the odd ccj, from when I was having a bad time of things a couple of years ago.

I'm now in a pretty healthy position but looking for a mortgage for a shared ownership property, do you have any advice of what to expect, who to contact and how any enquiries regarding a mortgage could affect my already frail credit?

I bank with natwest, only have a debit card and my phone contract.

mutron_2

My wife and I just received an AIP from Halifax today but our broker advised that these are tougher to get than straightforward mortgages and you will have literally no chance of getting one with any sort of black mark.

I had to fight to get a default removed from T-Mobile (see sig) as it resulted in a prior decline but, as it's literally just been removed from the CRAs, we were accepted.

gabyjane

Hi we have a S/O mortgage so may be able to help. Bear in mind this was for us and understand this scheme may mean something else in other parts fo the country!

Basically when we applied they gave us an interview about finances, where have lived etc and needed to know everything about any loans debts etc. Once they have done the figures they let you know yes or no!
They had mortgage brokers we could use or our own but we used one of theirs who has been fab. he sorted everything out for us on that side of it..(had our last one done by him this monday gone and done and dusted in about an hour) Then the solicitors etc etc.

Contact your local S/O people and go from there. Ours were really good and have been from day 1.

Good luck and anything else just shout x

justabitskint

I have a neighbour who is an ifa so we'll have a chat over the weekend, I'm going to view a property on friday so will collect some paperwork to look at then and see how it goes, I may like the place, I may not. What area is your scheme in? If you don't mind me asking of course.

brit1234

Look at the shared ownership bad points before you commit. You could be trapped in an expensive home that rapidly falls in value and you can never sell.

justabitskint

I'm aware of the pitfalls, sadly the rental and property market where I am is pretty horrendous, unless I earn £40k+ a year I can't buy anywhere worth buying and rental prices are equally ridiculous. Shared ownership properties in the locality do still sell although the sale process itself can take a little longer, locally it's an easier and popular way to get in. I could buy a place on s/o for less than it would cost to rent the equivalent privately.

It's not ideal but the best available option at present, developing a mortgage history should also stand me in good stead for the future.

property.advert

I can only advise to avoid shared ownership. I live in one, rented from the landlord but I know what the numbers are and the rent charged on the portion you do not own is way too high. There are also issues over the valuation as you need to know who would buy it from you and could they own 100%. Finally, it has to be valued akin to a council house as that is the market it is in. If new build, it will almost certainly be well overpriced. Avoid.

justabitskint

The problem I have is that a private rent of a 1 bed flat in a half decent area is £600+ a month, before bills and at present the amount for a shared ownership is nearly £100 less. Circa £500 a month would get me a studio hovel in an area I'd need a stab vest.

It's a horrible catch 22 but for a single person on not massive money in the south east the options aren't great. Everyone needs shelter.

SouthCoast

I live in a low wage economy and nobody can actually afford to buy the shared ownership affordable housing. Some of the properties have been on the market for a couple of years and others have been let out.

gabyjane

justabitskint wrote: »

I have a neighbour who is an ifa so we'll have a chat over the weekend, I'm going to view a property on friday so will collect some paperwork to look at then and see how it goes, I may like the place, I may not. What area is your scheme in? If you don't mind me asking of course.

Good luck with the property i love looking at houses! I am in the South.

gabyjane

brit1234 wrote: »

Look at the shared ownership bad points before you commit. You could be trapped in an expensive home that rapidly falls in value and you can never sell.

Lol at these posts i'm not even going to waste my time explaining why there are good/bad points to ANY house you buy! Ours has gained £30k in less than 3 years and we are now in a very fortunate position which we wouldn't have been renting..so far so good for us and as we are not intending to move for a long time it is of no concern either.