Shared ownership application dilemma

VernSW

My partner and I have put in a joint application for a shared ownership property. We were approved and allocated a plot by the council and are now ready to proceed with our financial interview to assess eligibility and then proceed with the mortgage application.

Our combined income at time of reserving the plot was £65k, only £1k shy of the household income limit for shared ownership application. However, since then I got a new job and now earn more. As it stands, we are now above the limit of £66k.

Anyone know how this will affect our proceeding with the purchase of the property and if indeed we'd be able to continue? I am wondering whether during the mortgage application either the lender or our solicitor will realise that we are now over the limit and thus deny us the mortgage and/or inform the council.

Anyone have any idea?

pinky28

If you are over the limit I'm not sure why you are bothering with shared ownership? I was well under the limit and got knocked back for one and went away and saved up 15% deposit over 2 years.

VernSW

We are bothering because we were eligible to apply. After getting allocated a plot and now ready to proceed with the buying process we find ourselves £2k over the limit...

Anyway, we're in a unique situation here so hope someone out there knows the answer!

pinky28

If you are over the threshold you won't be able to get it if they find out. I dare say if they found out you had 10 grand in investments that would affect it also.

I'm not trying to be horrible as you have clearly taken from your reply but I found shared ownership a disappointment from start to our eventual "sorry you don't tick enough boxes" letter.
If the development is popular they will find a reason to chuck your application and assign your house to someone who works 12 hours a week, has 4 kids and lost their last house to repossession.

My sources for this? My experience.

VernSW

I'm not so sure our application process and experience relates to yours. Thanks for the reply anyway.

kimbyanne

As it's still early and you haven't had the financial review, they will see your income and as you are over the threshold you won't be eligible.

they are very strict on this!

We recently purchased a S/O property and they check your income with a fine toothcomb!

Had you have been further in with your application, you probably could have got away with it but you will need the financial review which will flag it up

Twiglet12

Do you have the option of upgrading to a 3 bed, these have a higher income threshold? The reservation fee may be transferable.

If not, you can probably get away with it if your pay rise hasn't come through on payslips yet. We weren't properly financially qualified by the housing association anyway as we used a non-panel broker, but had we been, it would have been based on the same last 3 months' payslips as used for our mortgage application. If you've already been paid your new salary, you'll need to ask them as it's likely you won't get away with trying to conceal it, but there is a chance they may have some flexibility.

Pinky28 - savings aren't taken into account. In fact they are, but not in the respect you imply. We had to demonstrate almost 20k deposited in accounts to cover the mortgage deposit and costs of buying.

ethank

Why are you buying shared ownership? They are difficult to sell on, and you only own a share. You have to seek permission from the HA for everything you want to do with the property.

It is better to own 100% of something than 50% of something!

VernSW

I'm not going to turn this thread into the merits of SO.

seansgirl

Hi VernSW- do you have an update on this?
Interested to know how it turned out?

SG