shared ownership application

waribai

Hi,

I and my partner are considering buying a shared ownership property. Our joint income is about £65000 which would put us over the maximum salary qualifying threshold of £60000. However, my partner will be leaving work in June to return to university and we will then have just my income and be under the £60000 threshold. But that's not till June and the property we want is on offer now! Is it a risk for me to make an application using just my income without stating my partner's income? Would there be any way that the housing association would discover that my partner is still working?

Meeper

Any particular reason you don't just want to buy a regular property?

waribai

Meeper wrote: »

Any particular reason you don't just want to buy a regular property?

Thanks,

Yes, properties we are looking at in our area are about £280000 for what we want and max we could borrow on £65000 joint income would be about £210000. We only have about £20000 in savings which won't get us the £280000 property!

Meeper

Speak to a mortgage adviser. Depending on your circumstances you could potentially borrow anything from £260,000 to around £320,000 subject to no outstanding credit in the background etc etc.

waribai

Meeper wrote: »

Speak to a mortgage adviser. Depending on your circumstances you could potentially borrow anything from £260,000 to around £320,000 subject to no outstanding credit in the background etc etc.

and what sort of deposit would I need on a £280k place?

Meeper

10% generally.

It would almost certainly be worth waiting and saving the extra deposit money rather than getting into a Shared Ownership or Shared Equity arrangement which are generally very restrictive when you want to get out of them in the future.

brit1234

I agree with the above comment, better save and get a normal house. No rush house prices are falling.

I recommend you look at the dangers of shared ownership before you go any further.

waribai

Thanks for the advice. London though doesn't seem to be falling that much!

PasturesNew

She'll only be studying for 3 years .... at the end of which time you'd find yourselves trapped in a SO property you have trouble selling; then a great job will come up and you'll wish you'd waited and could move to be closer to that.

Three years is no time at all to wait, she'll be earning more afterwards I'm guessing (or what's the point).... you're well off, it'd be better to wait. House prices won't be rushing off away from you - but people in SO houses have a heck of a time trying to sell them.

Muhasib

Isn't it common sense to ask what the remaining income will be after the partner goes to University? the ability to support a borrowing of at least £260k with interest rates predicted to rise and one remaining income could then be estimated with more clarity.