Help to buy

SamHD

Hi. I was looking for some info re: help to buy schemes. I'm married and my husband jointly owns a property that his ex refuses to sell. Would I be able to apply for this scheme in my own right and in my own name, or would I be considered as a home owner too?

Many thanks.

amnblog

You are not a homeowner, so are eligible for the scheme.

kingstreet

Mortgage affordability would be based on your income alone.

Are you looking for 95% on Mortgage Guarantee, or Equity Loan on a newbuild?

SamHD

Thanks for your responses. At the moment I'm thinking of mortgage guarantee. We currently rent, but we have been given a years notice. I work part time, but will have to up my income to full time, hopefully, but even then, I wont be earning a great deal. Renting is so uncertain, and I've been completely poleaxed by the notice to quit, with 2 young boys it's not ideal. My husband is on a good wage, but as his ex keeps defaulting on the mortgage, his credit is shot, as it's in joint names. The case was in court recently, and we were hoping for a repossesion order (even though that's disastrous regarding his credit rating), but no joy.

Would I be able to apply on a low wage?

kingstreet

You can apply with whatever income you have, but income determines affordability and affordability determines what you can borrow.

If you don' earn a lot, or have dependents, credit, childcare costs etc, this will all impact your borrowing power.

You were in court to obtain power of sale, not a repossession. That is sought by a lender when you don't pay the mortgage, so no damage to credit file from the former.

All HTB - MG does is increases the availability of 95% mortgages. If you have a 10% deposit, you won't be using it.

SamHD

Thanks for your reply, really appreciate it. We were in court for a repossession order, the mortgage company had issued the repossession. The court ordered that if the house was defaulted on again, it was an automatic repossession.

Would my husbands income factor into it? I'm not explaining myself very well, sorry. I mean his income is tied to me, so would his income have any relevance on application?

kingstreet

If he isn't party to the purchase nor the mortgage application, his income isn't taken into account.

If the mortgage hasn't been paid and a suspended repossession order granted, he's probably going to be "unmortgageable" for at least six years from the point the property is finally repossessed and the lender can chase for any shortfalls after selling off the property for twelve years.