Ftb before I even go to a broker

Deanf

Hi all

Long time lurker of these pages for the past few months and have learned a lot so thanks to all who have posted!

So we are looking to hopefully buy a property over the next six months but before We get too excited and look for a broker I need to realise if I am setting myself up for a fall before I begin!

Basically me and my partner are interested in shared ownership £33k for a 25% share we have 10% deposit saved. Partner has good credit history earns £16500 I on other hand earn £24k have not had a great credit history, 5 defaults registered 2-3 years ago (utilities and store card) some satisfied and an unsatisfied ccj 3 years ago which I am looking to pay off. During this time of difficulty I had several pay day loans all paid off on time. Not touch payday loan for over 18 months. I have learned how to better manage money over the past few years. I have two credit cards which have both been paid on time in past two years and had a personal loan of 8k which is nearly all paid off with no late payments. Rent and charges for shared ownership flat Is 300pcm for the rest of the 75%

I know my history will probably prevent any mortgage application and I understand why so my partner may have to apply on his own but with a low income may make it difficult also. Would either a joint or sole application be placed even with the help of a broker?

Any advice would be greatly appreciated as I don't think I could face a broker to be told we have no chance either as joint or single application.

Thanks again

kingstreet

I'm sorry, I don't see this working on a joint basis for reasons of adverse credit and I see it as difficult working on him alone due to affordability.

With rent and service charges of around £250 to £260 per month, plus the cost of any credit/dependents to further pull down his borrowing power this is going to be difficult.

If it's a newbuild, many lenders won't lend 90%, limiting your options.

I would speak to a broker who can at least establish from a factfind what will be possible and when. It's a small investment of a bit of your time and if not now, it may be helpful later.

Deanf

Thanks for your reply and knowledge.

I am dedicated to finding a solution and will look for a broker who might be able to help. Being shared ownership, adverse credit history and affordability will make it difficult for sure but hopefully I can find a broker who likes a challenge!

kingstreet

Shared ownership reduces the lending pool, then a 10% deposit means there won't be any options as far as adverse credit lenders go.

The affordability question is going to depend on property and lender selection.

amnblog

If you find a solution you may find the rate too aggressive.

When we have completed cases on shared ownership with adverse in the past the rate has been north of 9%