Shared Ownership with bad credit history

Fulstow

So, in the past in my immature student years I racked up a few credit cards etc and just decided to leave them (bad mistake, sincerely regret it, got some fantastic memories and a few good selfies out of it though...). I've been trying to pay them back but not very successfully. I'm about to come into a large sum of money (around £60,000) and I have no intention of wasting it all away (I already have far too many selfies). I'm obviously going to pay off all the debts immediately, but that isn't going to immediately rectify my credit history. After paying all my debts off and having a little bit of play money for a holiday or two (I'm only human after all) i should have around £50,000 left. Obviously this would be a fantastic deposit on a flat, but there's no way I'd get a mortgage for a good few years with my credit history. However it would be enough to buy outright a nice 40% in a shared ownership home and just pay the rent on the other 60% and slowly buy more shares in it. I plan on getting a 2 bed flat in the city center and renting out the other room for around £500 all bills included, which should just about cover my rent and the bills on the whole flat hopefully! This would leave me free to save up & slowly buy additional shares hopefully!

My question is, would they allow me to take part in the shared ownership scheme with a bad credit history? Obviously I wouldn't have the issue of getting the mortgage, but how strict are they? I could easily get my dad as a guarantor if that's an option? My only other option is to get my dad to take out a mortgage for me and eventually take it off him when my credit history improves, but I'd really rather do it on my own...

Fulstow

Did some ringing around about this yesterday and apparently there's no credit check to actually get on to the scheme! So as long as I don't need a mortgage, I should be fine Just in case anyone needs this in the future!

libf

You can't normally sub-let a shared ownership property, so I would check your lodger plans are allowed.

Also, affordability will be assessed so you will need a regular income of some kind.

kingstreet

If you don't require a mortgage, you may be viewed as not needing affordable housing.

You need to speak to your local HTB Agent and Housing Associations. Out in the sticks, I've known of one HA which allowed a cash purchase but only when we certified the applicant would not be able to get a mortgage an d that involved a property where there was no queue of better qualified purchasers.

Fulstow

Yeah I found out about being unable to sublet too, which to be honest shouldn't be a problem, I could still easily afford the rent etc as I have a full time job.

As for not being classed as needing affordable housing, that's a bit of a blow :-/ There's no chance I'd be able to get a mortgage but I'm guessing there's gonna be a whole host of better qualified purchasers ahead of me in the city center...

TBagpuss

Have you spoken to a specialist broker about mortgage options? they may be able to give you an idea about how which lenders might be prepared to consider you and how soon, and also whether your dad acting as guarantor would make any difference.

How bad is your credit? do you have ccjs etc or is it more about missed payments?