Housing association

BP1ME

Hi
I am on a dmp with 10.5k left to pay off. I'm selling up and expect to get 117k so will pay off dmp. Got my eye on a 2 bed housing association place. Could buy 50% and pay off dmp.

The rest is a subsidised rent. Do I need to have good credit for this? I have bipolar and my credit is poor but no ccj or bankruptcy.

Help!

harveybobbles

Didn't think HA let you buy? Thought it was just councils, after so many years.

National_Debtline

harveybobbles wrote: »

Didn't think HA let you buy? Thought it was just councils, after so many years.

Hi Harvey


I think OP is referring to buying a property through a "shared ownership" scheme where one takes out a mortgage on between 25-75% of a HA property and pays rent on the remainder, as opposed to a "right to buy"-type scheme which is perhaps how you (understandably) read it.


That does exist for HA properties, incidentally, but falls under the "Right to Acquire" scheme and is restricted to existing tenants meeting various conditions.


Dennis
@natdebtline

National_Debtline

BP1ME wrote: »

Hi
I am on a dmp with 10.5k left to pay off. I'm selling up and expect to get 117k so will pay off dmp. Got my eye on a 2 bed housing association place. Could buy 50% and pay off dmp.

The rest is a subsidised rent. Do I need to have good credit for this? I have bipolar and my credit is poor but no ccj or bankruptcy.

Help!

Hi BP1ME


Have you confirmed that you would meet the criteria for the shared ownership schemes offered by this housing association? Such schemes are usually reserved for first-time buyers.


Dennis
@natdebtline

January2015

Speaking from family experience - if you have sufficient cash to put down so you only pay rent on a percentage of the property you would not qualify. The HA would deem that you could afford to purchase with a mortgage.

We have family members who are in this exact position financially (no debt, good credit history, but enough cash to purchase 50% of a property outright and rent the balance). For a number of reasons they do not want to get a mortgage (mainly health issues). However, every HA shared ownership scheme we have approached have turned them down as they do not qualify as they have sufficient cash to put down and get a mortgage for the balance to buy a property outright.

As I said, this is our experience, in the area we live. You may find different rules in different areas as it could be local interpretation of rules.