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Shared ownership and 45% ratio?!
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BerryCheesecake
Posts: 15 Forumite
I applied for a shared ownership property today and went for their 'affordability' assessment.
They put all my information into something called "shared ownership purchase affordability assessment" form and there was a little calculator at the bottom which states how much of a share you can purchase to keep you under the 45% "monthy payments to household income ratio".
The calculator has claimed that I cannot afford the 50% share without a huge deposit (to still be within their 45% affordability ratio).
BUT, I have a mortgage offer from a company who is willing to give me a 95% mortgage on my share with a 5% deposit ( which I can afford).
Is there any way round or a way to over ride this 45% thing he said is set by the Government? is it set in stone or can individual housing schemes accept people who would exceed this 45% thing?
Any advice appreciated as I so desperatly want this house and it was all good to go until this point!
They put all my information into something called "shared ownership purchase affordability assessment" form and there was a little calculator at the bottom which states how much of a share you can purchase to keep you under the 45% "monthy payments to household income ratio".
The calculator has claimed that I cannot afford the 50% share without a huge deposit (to still be within their 45% affordability ratio).
BUT, I have a mortgage offer from a company who is willing to give me a 95% mortgage on my share with a 5% deposit ( which I can afford).
Is there any way round or a way to over ride this 45% thing he said is set by the Government? is it set in stone or can individual housing schemes accept people who would exceed this 45% thing?
Any advice appreciated as I so desperatly want this house and it was all good to go until this point!
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Comments
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Need some figures here. House price, income, deposit.poppy100
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House price: £77,500
Income: £23,295
Deposit: £4,0000 -
BerryCheesecake wrote: »Any advice appreciated as I so desperatly want this house and it was all good to go until this point!
I wouldn't recommend shared ownership to anyone but if you are going down that route you are better off having a smaller share and paying that off first rather than stair casing. It will make it easier to sell if need be and protect you better from falling prices with the housing association taking more of a loss than you.
Good luck.:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
Save our Savers
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Thanks for the info Brit
According to their calculator thing, to stay within this 45% ratio, OB my current details I could only buy a share of 29% which is not enough as they will only sell 50 or more. I really dont get it though as I have a mortgage company willing to give me a mortgage for 95% of the £77,500 share!0 -
but is that mortgage offer taking into account the rent on the other 50%?0
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I'm not sure, I costed everything out and with the mortgage offer I'd still be able to afford the rent, service charge and all
My other bills etc0
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