HELP shared ownership mortgage and advice.

Newbie_loan

Hi wondering if you guys can help.

So my landlord has sold his flat so we have till June to leave.

Me and my partner have been looking at shared ownership schemes and it seems the right thing for us to do.

Ok the good..
We have 10k saved up, we are looking at 35%share of a property so need 60,000 if we manage to get a 5% deposit that would be 3 grand if a 10 % is needed that would obviously be 6,000.

The question is I'm a bit unsure where to start. The shared ownership is through a housing association is a company called radian.

Can they set everything up for me and give me a independent financial advisor or am I better off finding one my self?

To be honest I don't know if I could be accepted for it.

Me and my partner earn together around 35k a year. We do not drive so expense not needed for a car.

However we do have debts we have around 5k all on 0% credit cards
We could pay this off but then would only have 5k for a deposit.

Really I am after just Advice? And help?

We have both done a credit search score on equifax and both have poor credit rating however have never missed a payment for anything.


Any help and advice or if anyone has done a shared ownership scheme that would be fantastic, and if you got your shared ownership mortgage from a high street lender. Or if the housing association helped you??

Thank you

Twiglet12

We've just bought shared ownership with a 5% deposit. I think, from our various enquiries, there is only one lender with a product for those circumstances. We did have to pay off a credit card and a small personal loan (total of 6k across both) as these seriously reduced the amount we could borrow.

The selling agent (not the housing association who'll own the other share) had panel brokers and solicitors. In our case we had to be 'financially qualified' by their broker before we could even view. This is a relatively quick process - they'll tell you very quickly if there's no chance you'll secure a mortgage. We then used another broker to get us the mortgage (you aren't tied to using their brokers for this).

I can't overemphasise how important it was that we used a broker. The lender we were stuck with is notoriously tricky with paperwork and processing times - our broker was constantly on top of them, gave us almost daily updates and got the application through with relatively little hassle. If we'd gone it alone I'm certain we wouldn't have been successful.

Wantalot

In shared ownership what happened to the other parties share I mean if you pay the rent for how long and how u buy the remaining shares also when you started living there do live as tenants what are ur rights please guide me as I'm also thinking for this option

Newbie_loan

Thank you twiglet what was your credit rating like as mine is poor even though I have no defaults etc... I hope I can get the 5% deposit if I can get that then I can pay the debts aswell..

Twiglet12

Wantalot wrote: »

In shared ownership what happened to the other parties share I mean if you pay the rent for how long and how u buy the remaining shares also when you started living there do live as tenants what are ur rights please guide me as I'm also thinking for this option

The Housing Association owns the rest and you pay them rent. When you have enough savings for a larger deposit, or you've paid off some of the mortgage and have equity in the share you bought, you can 'staircase' to buy more of the property.

Most shared ownership properties are leasehold, and you live in them as if you were the leaseholder, not a tenant. You pay the full service charge (if applicable) and are responsible for all repairs etc.

Twiglet12

Newbie_loan wrote: »

Thank you twiglet what was your credit rating like as mine is poor even though I have no defaults etc... I hope I can get the 5% deposit if I can get that then I can pay the debts aswell..

You'll really need to go through the affordability assessment with the broker to see if the debt will affect you or not. We'd have had no problems paying ours off but 6k across a credit card (1k) and loan reduced our borrowability by well over 100k. Having said that we also have student loan repayments from salary which didn't matter after we paid off the rest.

The credit rating depends on which reference site you're looking at. We did have excellent credit scores across the board though. Good luck!