Getting a shared ownership mortgage

leereni

I have some adverse credit and wondered how easy/difficult it is to get a shared ownership mortgage.

Please, if there are any mortgage brokers can they comment and let me know how far back lenders look.

Meeper

It is not necessarily any more difficult or onerous than getting any other mortgage when you have adverse credit. Depends on what the adverse is and how long ago.

Get a copy of your credit file and visit an adviser.

leereni

Thanks for the reply.

I have online credit information so keep a track on it very frequently. I am not looking at buying until approximately 12-18 months, by which time I will have a loan which was settled March 2007 but fell into arrears over. I have another loan which was settled 4 months ago. On that loan I was up to date for the past 2 years but prior to that was in arrears. Other than that I have a couple of account with very few late payments which were several years ago now. So, for approximately the past 2 years I've been fully up to date with no defaults.

I'm just wondering how clean your credit has to be and do lenders go all the way back to 6 years?

Meeper

Generally your conduct is only considered for 12 months, but issues prior to this may result in a generally lower credit score regardless of the current conduct, depending on the severity of the issues.

If you keep your nose clean between now and the time you are looking to purchse, I don't think you should have an issue with the credit scoring side of things, depending on how much you want to borrow and the purchase price of the property, etc.

leereni

By that time I will have approximately £20000 between me and my girlfriend who has no adverse credit history, however she only earns £11000 and has been in her current job for 2 months where as I earn £40000 and have been with the same employer for 5 years.

I just heard it's much harder to get a shared ownership mortgage than normal open market one. And as I currently live in london and would like to stay thereabouts my only option is a part rent part buy scheme.

Meeper

It is not harder to get a shared ownership mortgage over a regular one. Less lender choice, but not necessarily stricter criteria.