Shared ownership Mortgage

Millwright94

Afternoon all,

I am desperate to get on the housing ladder. The rent I am paying every month is dead money and could be going towards a mortgage.

I have been offered a shared ownership property by my local housing association.

Im trying to find a company that will offer Shared ownership mortgages in the current climate for people with bad debt in the past.

I currently earn £26k a year and the 25% share is valued at £36250.
Rent is £218.75 and £59.90 service charge.

I have a 5% deposit available.

Any positive ideas?

kingstreet

You're buying 25%, or 75%?

You'd better explain what "bad debt in the past" means and if you haven't already done so, order your £2 statutory credit files from the three CRAs so you know EXACTLY what is recorded against you.

catfish50

Millwright94 wrote: »

I have been offered a shared ownership property by my local housing association.

Im trying to find a company that will offer Shared ownership mortgages in the current climate for people with bad debt in the past.

Housing Associations usually have a list of lenders who are prepared to lend on shared-ownership properties. Perhaps try those first.

Millwright94

kingstreet wrote: »

You're buying 25%, or 75%?

You'd better explain what "bad debt in the past" means and if you haven't already done so, order your £2 statutory credit files from the three CRAs so you know EXACTLY what is recorded against you.

Im buying 25%.

Bad debt means i took out a loan and credit card whilst at uni. I have an agreement to pay them back but they are still outstanding. I dont have any ccjs or anything.

Millwright94

catfish50 wrote: »

Housing Associations usually have a list of lenders who are prepared to lend on shared-ownership properties. Perhaps try those first.

I asked but they said they no longer have a list of lenders and I would need to find them myself.

catfish50

Millwright94 wrote: »

I asked but they said they no longer have a list of lenders and I would need to find them myself.

In the past I've known both Halifax and Nationwide to lend on shared-equity properties but that was before the crash. Policies may have changed.

There's also this place:

http://www.sharetobuy.com/information/shared-ownership-mortgage.php

I haven't used them myself -- just googled and they came up. It might be worth exploring -- cautiously.

kingstreet

Millwright94 wrote: »

Im buying 25%.

Bad debt means i took out a loan and credit card whilst at uni. I have an agreement to pay them back but they are still outstanding. I dont have any ccjs or anything.

Are we talking about two defaults with arrangements to pay? How much are they for?

kingstreet

I've just sourced the case and the following came up;-

Kent Reliance
Leeds
Shepshed
Teachers.

I don't know if any of these might take your case, you'll have to research them individually.

This was based on a property for £145,000 with 25% shared ownership of £36,250 with a mortgage of £34,437.

DVardysShadow

Millwright94 wrote: »

Afternoon all,

I am desperate to get on the housing ladder. The rent I am paying every month is dead money and could be going towards a mortgage.



Any positive ideas?

I suppose this will be ruled out of order as not being positive. Money spent on buying property when house prices then go on to fall is as dead as rent money.