shared ownership mortgage

jessie-jane

We are currently renting but have seen a property that is for sale with a housing assoc. you buy 50% and then rent the other 50% from the housing assoc.
Just wondering are we consider as ftb ( previously had a property, sold now renting), and do we only have a limited choice from whom to get the mortgage from?

Any advise would be welcomed

JoeK_3

There are plenty of high street lenders that will offer shared ownership mortgages.

This is of course subject to the loan amount and your incomes.

JoeK

Manchester78_2

I have just completed on a shared ownership property and arranged my mortgage with Leeds Building Society who offer in my opinion fairly competitive shared ownership mortgages.

Like the previous poster says, there are loads of lenders who should be able to help though, so shop around

richiethekid

Is it generally easier to obtain a mortgage for a shared ownership property than to buy outright? The reason I ask is we've been having trouble getting a 100% mortgage for around £120k (due to credit file problems including inaccurate information which is being dealt with) but have seen a 50% share in a new build for £75k. Would lenders be a touch more lenient with smaller amounts?

hollyblue

richiethekid wrote: »

Is it generally easier to obtain a mortgage for a shared ownership property than to buy outright? The reason I ask is we've been having trouble getting a 100% mortgage for around £120k (due to credit file problems including inaccurate information which is being dealt with) but have seen a 50% share in a new build for £75k. Would lenders be a touch more lenient with smaller amounts?

Not sure about the lender but the Housing Association may turn you down on the basis of your credit file - they also do a check on your credit history to make sure you are credit worthy for the rent. Remember if you own half the house the HA could have a hell of a job to boot you out if you default on the rent.

Mr_helpful

There are not many lenders who do 100% of the share but plenty that do 95% and some even withbad credit but that does depend how bad

richiethekid

The problems are more with my other half's credit file than mine. I have an old credit card default which is settled and should disappear off my file early next year. But with the mortgage being smaller, theoretically I should be able to obtain a mortgage on my own which would save a lot of hassle. Would still be tricky raising a deposit right enough. Surely lenders are stricter the more you want to borrow though?