Shared ownership mortgage with defaults

525manhattan

Hi,

Looking to get a mortgage for a 25% share in a property valued at £355,500. We have £6-£8,000 for deposits and fees.

Mortgage Requested: £80,000

Our yearly joint income.
Salary One: £25,000
Salary Two: £7,540
Extra Income: £3,600

The only problem I have is that there are 3 defaults on my file from 4-5 years ago of which 2 of them I am disputing as I have just found out about them and hopefully getting them removed soon. One is genuinely mine from a loan I took out in 2007 and fell into trouble as I lost my job, since then that same lender(Welcome Finance) has gone bust for Miss-selling PPI's and I was advised not to repay them any money as they sold them to me as well. However that is still on my file.

I have spoken to a couple of advisor's who have said that Leeds BS is the only lender available to me at a rate of 5.69% but they cant guarantee me acceptance on my credit history hence I have not made a full application yet.

Please can you recommend or give me your honest opinions on what is available to me at this current time.

Thank You

poppysarah

So mortgage on 88875 - you have less than 10% deposit and are only buying 25% of a property.

I assume you'll have rent to pay on the other 3/4


I think you're insane but I think shared ownership is insane.

marliepanda

Surely the mortgage plus rent is going to be huge? (plus any other fees and charges associated with these types of houses)

Why are you looking at houses worth over a third of a million pounds with a £6000 deposit? Why not look at a cheaper property and save a larger deposit?

It all just sounds insane...

525manhattan

The rent would be £610
Mortgage if I get one with my credit £520
Service charge £210

Total Monthly cost would be £1340...

I know it sounds insane but my current rent is £1083 per month (250pw) which will go up to £1148 (£265pw)

I'm fed up of paying high rent in London because of the Olympics and cant afford to buy outright with my credit rating hence the reason for the shared ownership option which is a 2 bed duplex btw

brit1234

525manhattan wrote: »

Looking to get a mortgage for a 25% share in a property valued at £355,500. We have £6-£8,000 for deposits and fees.

:eek::eek::eek::eek::eek:

Sorry people offering these deals should be arrested it is pure economic terrorism.

Avoid, don't do it, save more, its like you want to self harm.

525manhattan wrote: »

The rent would be £610
Mortgage if I get one with my credit £520
Service charge £210 (What £210 a month service charge, does that not set alarm bells, you are being ripped off).

Total Monthly cost would be £1340...

I know it sounds insane (because it is) but my current rent is £1083 per month (250pw) which will go up to £1148 (£265pw)

I'm fed up of paying high rent in London because of the Olympics (Which ends by August) and cant afford to buy outright with my credit rating hence the reason for the shared ownership option which is a 2 bed duplex btw

Improve your credit rating and save whilst you do it, shared ownership is a scam. London prices will fall and you can get far cheaper 2 beds than £360k.

marliepanda

So if you stayed renting you will b £200 a month better off, which you can save in order to try and get a better mortgage, let those defaults drop a bit further in time, etc.

You will be currently paying £1140 of 'dead' money, but in this new flat you will be paying £830 of 'dead' money PLUS you are going to have to pay for everything that goes wrong yourself as you will be the homeowner

I would stay renting, save as much as you can, and try and get a mortgage on a cheaper 100% owned house.

ILW

Wanting a 3rd of a million pound place on joint salaries of £32k is a little optimistic

geoffky

The madness continues,,
You are financially illiterate...

Wickedkitten

525manhattan wrote: »

The rent would be £610
Mortgage if I get one with my credit £520
Service charge £210

Total Monthly cost would be £1340...

I know it sounds insane but my current rent is £1083 per month (250pw) which will go up to £1148 (£265pw)

I'm fed up of paying high rent in London because of the Olympics and cant afford to buy outright with my credit rating hence the reason for the shared ownership option which is a 2 bed duplex btw

Think about it like this yes, your take-home total is around 36k and you are wanting to spend £1340 a month servicing a mortgage, rent, and services charges were at the moment your rent outweighs your mortgage costs.

If you are spending £530 on a mortgage for a quarter of a house when the base rate is the lowest, how are you going to cope when the rates go up on that salary?