Shared Mortgage

Super_Ram

Morning All,

I have a quick query I am hoping I can get some advice on.

Me and my partner are looking at getting o nthe property ladder but have a few issues with gaining a full Mortgage.

Our details

I earn a little over 20K officially at the moment as my pay is also increased with a possible job promotion and current OOH work which brings my unofficial wage to about 27K but as these are not concrete I am not counting than at the moment.

My Credit file is all fine as in up to date on payments, on the electoral register etc. My only blemish which I suppose is a big one is I was in an IVA which started in Nov 2007 and satisfied in 2010. It is due to drop off my Credit File next years in November as will be 6 years. I only have 2 defaults on my account which relate to this IVA and they registered the defaults just before on on the date of IVA which again will drop off next year around the same time as IVA does. I am double checking but I believe both Defaults are set as satidfied or settled also.

My Girlfriend earns around 21.5K

However her Credit file is not in good shape as she has the below:
- Default that is satisfied and due to drop off next year
- Another Default satisfied and due to drop off in 2014
- 2 defaults recently added last year which have been paid off and are satisfied but until recently checking her report only then found out they registered defaults.

In terms of Deposit we have a minimum of 15K

So my question is we want to get on the ladder as incomewise now with outgoings we are very comfortable and have no debts now apart from a couple of credit cards totalling around 500 quid but these get paid off every month in full.

As we are unlikely to get approved for any sizeable amount of Mortgage I have seen some Shared Equity apartments for about 35K for 50% which if you take off our deposit we would be looking for a Mortgage for 20K. Would this be possible or would they look at it the same and refuse us based on our Credit Report or the less risk of the smaller amount they lend would this go in our favour.

Thanks in advance for any help and advice

kingstreet

Lenders tend to take adverse credit as an absolute. They'll lend to you or they won't. The amount you want to borrow won't have an impact, but the loan to value will.

Shared equity you buy 100% of the property and the builder/Government takes a second charge on the loaned bit. Shared Ownership you buy a portion of the property and rent the remainder, normally from a Housing Association.

Take care to identify what scheme you are actually looking for.