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Affordability - how is % calculated?
AEC
Posts: 7 Forumite
With regards to shared ownership (I hear your groans!) how is your affordability calculated?
The house is on the market for £150,000.
I earn £11,960 before tax.
I have £25,000 in savings.
The confusion is intense so any help is appreciated!
The house is on the market for £150,000.
I earn £11,960 before tax.
I have £25,000 in savings.
The confusion is intense so any help is appreciated!
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Comments
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Is the share you want to purchase £150k, or lower? On £11k salary I think it will be difficult.
They factor in the cost of the rent and service charge as well as mortgage payments and other outgoings.0 -
This is not a simple answer as it depends on the lender and the rental on the property plus any service charge if applicable and other debts and outgoings.
The Housing Association should put you in front of an adviser who will confirm what you can afford.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
AliceBanned wrote: »Is the share you want to purchase £150k, or lower? On £11k salary I think it will be difficult.
No, more like 45% which I believe is £67,500.
The lady I saw said I'd have to buy the maximum share I could afford. I was wondering how they'd work it out but it looks like I'll need to see an adviser.0 -
They will introduce you to one.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
No, more like 45% which I believe is £67,500.
The lady I saw said I'd have to buy the maximum share I could afford. I was wondering how they'd work it out but it looks like I'll need to see an adviser.
OK then may be a possibility. The housing assoc should give you details of minimum income allowed to purchase the property, taking into account your deposit and any other outgoings.
I purchased a SO property (share was £62k) and I earn more than you but had a lower deposit of £12k. However I only just met the criteria but that was partly as I also have debts. I think you can speak to their adviser over the phone and they can do a check and let you know.0 -
I don't have any debts, dependants (just a dog but was told that's not an issue!) and my credit score is excellent.
I've applied to see if I'm eligible and will sort out seeing an adviser
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