New-build, mortgage and co-ownership

jay459

I have just seen a new build house and its nowhere near finished and will have the option of having the house done to my own specification in terms of wiring, plumbing, etc...

The house will be 150,000 but Halifax are only giving me a 98.5k mortgage, i applied for this decision in principle through an estate agent. Am i any better off just ditching them and going to halifax direct.

With 98.5k mortgage and 25k deposit it stills leaves me short so i hoping of going co-ownership, 80%/20%.

This would mean 120k I will own and 30k on shared ownership.

Does this sound realistic and is co-ownership hard to get, if i have already been given a mortgage promise with the halifax should i be confident on getting co-ownership.

I am from Northern Ireland by the way....think CO-ownership is not as popular in the UK.

saverbuyer

Coownership only exists in Northern Ireland.


It's a Northern Ireland housing association.


Better to post in the NI board.

kingstreet

If Halifax will only lend you £98,500 due to affordability, any rent or other charges you pay on the unowned share will see your maximum mortgage amount fall as the mortgage will be deemed less affordable due to the other new outgoings.

You won't get to borrow more via a different distribution channel. Halifax caps lending on "affordable housing" at 4.5 x income, talking into account outgoings like ground rent & service charges, credit, dependents etc.

AWeeCuppaTea

If the 25k deposit is in your name then Co-Ownership won't be an option as they won't lend if you have more than £5000 in savings or more than £5000 debt.

I would've only been able to borrow about £90-92k on my own, but with Co-Ownership was able to buy a house 50/50 for £120k.

jay459

Yeah I need to pay off some debt and my advisor said today i can go 50/50 on the 150,000 house paying a 12k deposit leaving me 5k in savings and bringing my debt down to 0.

Im just curious will my shared ownership go through as easy as my mortgage promise, i do have a £3 missed payment on my credit file but this was a £3 payment that i didn't even realise i had. But it wasn't flagged by halifax on my application.

I also claim DLA, i wonder if that will be an issue..

fallin123

AWeeCuppaTea wrote: »

If the 25k deposit is in your name then Co-Ownership won't be an option as they won't lend if you have more than £5000 in savings or more than £5000 debt.

That's wrong, you can buy a house if you have more than 5k in saving as long as you put anything about the 5k in as a deposit. So a 25k deposit would be grand providing you don't have over 30k in savings.

jay459

this is co-ownership, you can't have over 5k in savings...

fallin123

You can have over 5k in savings beforehand as long as you don't have over 5k in savings afterwards. I just bought a house through co-ownership and had about 20k in savings.