Ex-IVA - looking for shared ownership mortage - possible?

notmyrealusername

Was hoping for some input from those in the know...

I completed an IVA in late 2009 by way of full and final settlement, all defaults and any negative markers came off my file Autumn 2012. I have 3 x credit cards (taken out early 2010 and later) and 1 x store card which are run impeccably - used every month and balance paid off in full. Total credit limits available 8.5k - none is utilised permanently as the balance is always paid off in full as soon as I receive the statement. Bank account with same provider for 6 years - again run impeccably have never been a penny overdrawn etc I have no debts.

I earn approx 28k (more like 30k with overtime but this isn't guaranteed so will have to go with 28k), have been in the same job for 7 years, on electoral role at same rented property for 4 1/2 years.

I am looking into shared ownership and have just had some info via email about a new development. A 40% share on an 180k property is 72k - it says the minimum depost required is £3600.

The deposit equates to 5% - is somebody in my position, eg ex-IVA which I know I will have to declare, likely to be considered for a) a shared ownership mortgage (I understand there are limited providers of such mortgages) and b) a 95% shared ownership mortage!

I know I will need to see a broker but if it's a pipe dream I won't waste their or my time by applying!

Edit to add: I'll be a FTB and the property is a new build if this makes a difference.

notmyrealusername

A gentle bump in the hope of getting some opinions

kingstreet

There's one lender offering SO at 95% to borrowers generally.

There are two more with geographical restrictions and a fourth which will only lend at 95% to its own existing borrowers.

I suggest you talk to the HA in question and see what the HA's adviser thinks.

notmyrealusername

kingstreet wrote: »

There's one lender offering SO at 95% to borrowers generally.

There are two more with geographical restrictions and a fourth which will only lend at 95% to its own existing borrowers.

I suggest you talk to the HA in question and see what the HA's adviser thinks.

Thanks Kingstreet, in which case I think the answer is No!

I believe the first lender you mentioned is Leeds BS and unfortunately their criteria states the following:

Not being subject to an Individual Voluntary Arrangement (IVA) unless discharged over six years ago.

Although my IVA was taken out over six years ago it was only completed three years ago. In reality this means Leeds need you to have taken out an IVA 11 years ago (5 years for standard IVA plus 6 years after) whereas a bankrupt would only have to wait 7 years from the date of bankruptcy if they got early discharge after 12 months.

There's two others I've found which have the geographical restrictions you mention - my county isn't included in these.

Oh well, back to the savings. I was expecting to have to save for another 2-3 years minimum to buy on the open market but even then, in reality, I couldn't get the multiples on the mortgage I'd need (minimum of 150k at today's prices) so as a single person of a certain age looks like shared ownership is my only option... but not until I have a bigger deposit.

Thanks for posting, I've seen so may helpful postings from you and other mortgage advisors over the months I've been reading this board :T