Past bad credit rating and buying through shared ownership!

scatz

You say on one hand you don't know anything of our financial situation yet on the other you say we are not in a financial position to enter into a mortgage agreement in this way??

I feel the questions which I have asked have not been answered, more a tangent has been drawn towards not having saved a deposit! Plenty of people have, in the past, bought with 100% mortgages. Likewise, plenty have bought through shared ownership. I merely wanted to hear from people who have been in a similar situation, quite clearly I haven't received a response from such people and now feel the thread has been marred by this deposit tangent!

Forgive me if I sound like a petulant child, it's not intended. Mere frustration for peoples intent to advise on that which I have not asked advice on, even if it's been given with the best of intention

BitterAndTwisted

In which case you should use the "search" function and have a read of the many, many other threads on this forum about the issues faced by other posters about their difficulties with shared ownership/shared equity. It's not the buying that causes all the problems, it's the selling which often reveals unexpected disadvantages and there appear to be many.

scatz

But then not many people come on such forums to post what a wonderful experience they have had, that's just human nature! Also, I assume you talk of those which are/were wishing to sell without having upped the ladder to 100% ownership. Once 100% ownership is attained then the house can be sold as freehold on the open market as any house can! Obviously I don't have a crystal ball and there are risks involved in every step of life, does this mean we should all sit back and not bother?

silverchair

The fact that there isnt many posters singing the praises of shared ownership..well theres your answer. I looked at shared ownership & there were too many pitfalls. It seemed that it was a lose lose situation so we have decided to save & carry on renting until we have a good deposit. And yes its hard saving. You may think that you are not spending much but there are always things that you can cut back on. Do a SOA, then plp can suggest where to cut back. Look at the oldstyle boards & ask advice.
I'm afraid I'm in agreement with BitterAndTwisted & Neas. See whether you can save first before having the finacial burden of a house.

poppy10_2

scatz wrote: »

you talk of those which are/were wishing to sell without having upped the ladder to 100% ownership. Once 100% ownership is attained then the house can be sold as freehold on the open market as any house can!

Also:

Shared equity does not lead to full ownership

scatz

poppy10 wrote: »

Also:

Shared equity does not lead to full ownership

Perhaps that should read "Shared ownership doesn't necessarily lead to full ownership" That's all dependant on personal finances. If you can't afford to buy further shares up to the full value of the property then quite obviously it won't, if you can afford it, you buy them and you own the property outright. I believe, the only stipulation upon selling the property if you own it 100% is that you have to give first refusal to purchase to the local housing authority! This is applicable up to 21 years after you have bought the property outright

DVardysShadow

scatz wrote: »

You say on one hand you don't know anything of our financial situation yet on the other you say we are not in a financial position to enter into a mortgage agreement in this way??

I feel the questions which I have asked have not been answered, more a tangent has been drawn towards not having saved a deposit! Plenty of people have, in the past, bought with 100% mortgages. Likewise, plenty have bought through shared ownership. I merely wanted to hear from people who have been in a similar situation, quite clearly I haven't received a response from such people and now feel the thread has been marred by this deposit tangent!

Forgive me if I sound like a petulant child, it's not intended. Mere frustration for peoples intent to advise on that which I have not asked advice on, even if it's been given with the best of intention

Plenty of people on here have bought houses - mostly 100% ownership and mostly less than 100% mortgages. It is from those perspectives that the advice is being given. Anyone who have bought a house from scratch is aware of the acute financial vulnerability for the first few years until the economic cycle has moved on and they have accumulated a bit of equity in the house through house price inflation.

All of these issues are issues you will face in shared ownership. There is nothing special about shared ownership which makes it different from 100% ownership in the issues to be considered - it is just that shared ownership

1. makes those issues more a significant risk factor
2. entices financially more vulnerable people into an ownership situation they may not be able to cope with

So, if you are complaining because you think that the 100% ownership people are putting forward negatives which will not apply to you, please have another think. They are putting forward negatives which they have lived with themselves and they know will affect you even more intensely because of shared ownership and because you are apparently financially vulnerable

scatz wrote: »

... Disposable income on our part is that which can be spent on days out, a better quality of food etc. We have spent so many years robbing Peter to pay Paul that it has been nice to use that disposable income to have some of life's little luxuries. Obviously, now we are aware that there is light at the end of the tunnel in the form of affordable housing that we may be eligible for then obviously our disposable income will become savings but I fear because of our lateness in becoming aware of our possible eligibility and the rate at which these new houses in our area are being built is that we will miss the boat, so to speak

You pays your money and you takes your choice. If life's little luxuries is what you want, now you can afford them, then that is fine, it is your money. But if you want a house, then the price will be life's little luxuries.

flecker

scatz wrote: »

I feel the questions which I have asked have not been answered, more a tangent has been drawn towards not having saved a deposit! Plenty of people have, in the past, bought with 100% mortgages. Likewise, plenty have bought through shared ownership. I merely wanted to hear from people who have been in a similar situation, quite clearly I haven't received a response from such people and now feel the thread has been marred by this deposit tangent!

Forgive me if I sound like a petulant child, it's not intended. Mere frustration for peoples intent to advise on that which I have not asked advice on, even if it's been given with the best of intention

B..b...but you want to buy a property: in what way is how you're going to pay for that property a tangent? The deposit is everything; it protects you from negative equity in a falling market (for a while) and determines the rates you'll have to pay on the mortgage, among other things.

Many of the people who have, in the past, bought on 100% mortgages or through shared ownership are truly stuffed (do a bit of searching here). People are trying to alert you to that, not attack you.

Your use of the phrase 'housing ladder' in the OP is revealing. At the moment, the market is more snake than ladder, so IMO you have nothing to lose but a lot to gain from saving for a while, watching prices stagnate or fall, then paying a larger deposit for a cheaper property and benefit from lower mortgage payments.

Just my opinion - genuinely not meant as an attack

scatz

I disagree DV, the points which have been raised are merely to emphasise that I haven't saved a deposit! I also feel that this point alone is being used to assume that we will be unable to afford what is an option! I am under no illusions that any kind of mortgage is risk free, I wasn't born yesterday! I intend to thoroughly explore the issues that I am already aware of and, believe it or not, some which have been raised in this thread!

The term 'financially vulnerable', can that be applied to me because I live in one of the highest property priced areas? I could move to another part of the country and earn exactly the same amount of money in the job that I do and would be very well off indeed. Fact of the matter is, that I have no desire to move to another part of the country as this is my home town and where I intend to spend the rest of my life, boring as that may seem to some! My point, therefore, being that I either take the risk in buying through such a scheme as there is no other purchasing option open to me or rent for the rest of my life which means I'd most likely end up in social housing in my retirement years....which would you choose?

DVardysShadow wrote: »

You pays your money and you takes your choice. If life's little luxuries is what you want, now you can afford them, then that is fine, it is your money. But if you want a house, then the price will be life's little luxuries.

Indeed. Life's little luxuries were affordable only because we were not aware that an option to purchase was there. After all, what would have been the point of saving towards a deposit that we knew would not get us anywhere, simply because of the high house prices! Better we enjoy life whilst the money is there don't you think! We have only very recently learned of the option to buy through this type of scheme and as far as I see it, those luxuries can be knocked on the head to be able to staircase to full ownership in the least amount of time possible........does that make sense?

DVardysShadow

scatz wrote: »

I disagree DV, the points which have been raised are merely to emphasise that I haven't saved a deposit! I also feel that this point alone is being used to assume that we will be unable to afford what is an option! I am under no illusions that any kind of mortgage is risk free, I wasn't born yesterday! I intend to thoroughly explore the issues that I am already aware of and, believe it or not, some which have been raised in this thread!

Assembling a deposit is the gateway to ownership at any percentage. So anyone who did not raise the matter in answering your request would be missing the key element in your quest for ownership

• Saving a deposit shows any lender that you are intent on ownership and that you are willing to put aside other desires to actually own a home
• Saving a deposit shows you can live within your means and control your finances.
• A deposit puts you to the front of the queue for borrowing
• Having a deposit protects you from house price falls in that it leaves you free to sell up if the worst happens

The deposit is so fundamental to buying as an FTB [shared or 100% ownership] that there really is nothing else much to discuss until you have one or have a workable plan to get one.