Shared ownership, cash buying the share - HELP NEEDED

fisherpri

I want to buy a shared ownership house, 25% of the share which is approx. £100k. I have bad credit history and even though I have a decent income now I still cannot get a mortgage. My parents have agreed to help me pay the full share amount in cash. The house association has just confirmed that they may accept cash buyers if I can't truly get a mortgage, however they need a reason for it. What good reason can I tell them, as I don't I think I can tell them that I have bad credit?

Newbiebuyer2016

Are your parents loaning you or gifting you the amount?

I'm sure the HA would want you to meet with the mortgage broker. Have you tried getting a mortgage? In theory you would have a £100k deposit then?

What would you do when you need to buy the rest of the house? You would need a mortgage then?

fisherpri

Is there a difference to the HA if the money is gifted or (loooong term) loaned?
I can't get the mortgage NOW, but will be able to in the near future, but the house will not then be available. So I need a solution ASAP.

Newbiebuyer2016

Yes I found the HA nearly as picky as the lender.

They required a gifted deposit letter, bank statements from my parents. Our solicitor took my parents passport details.

Put it this way I found the HA so difficult I got the impression they were trying to put us off even tho we had reserved the house!

There was also a criteria we had to meet and an affordability assessment we had to do. That was before we had even go to te mortgage part.

fisherpri

I have passed the affordability assessment, and I can very much afford the rent, and with the cash for the share the mortgage is not required - So what do I say to the HA?

Newbiebuyer2016

fisherpri wrote: »

I have passed the affordability assessment, and I can very much afford the rent, and with the cash for the share the mortgage is not required - So what do I say to the HA?

You could say the loan was a gift but that would be a lie and subject to checks.

I would think they would ask you to meet with the mortgage broker anyway?

After all they will be kind of loaning you part of a £400k property!

I'm guessing London on that price?

fisherpri

I can say I'm paying the share with my savings, my parents live abroad and the money will come from abroad anyway, but the HA will still say why don't you want a mortgage to purchase a higher share. I really need a good idea.

Newbiebuyer2016

fisherpri wrote: »

I can say I'm paying the share with my savings, my parents live abroad and the money will come from abroad anyway, but the HA will still say why don't you want a mortgage to purchase a higher share. I really need a good idea.

Yes but they want to see proof of your savings. Or where the money has come from!

It comes across like your looking for a way round something quite simple.

fisherpri

..but it is not simple. I can't get a mortgage and my only solution is that my parents are helping me with the share money. But the HA wants me to get a mortgage or tell them why I can't - So what can I do/say??

Newbiebuyer2016

fisherpri wrote: »

..but it is not simple. I can't get a mortgage and my only solution is that my parents are helping me with the share money. But the HA wants me to get a mortgage or tell them why I can't - So what can I do/say??

Meet with their mortgage advisor to prove you can't get a mortgage. Then make sure you have evidence of where the £100k had come from.

[Deleted User]

Not buy a shared ownership place and work on your finances (building up a credit record).

If you have been so bad with credit, how are you going to pay rent on the other 75% and service charges.., these aren't insignifican't amounts.

To be honest, I would be HONEST. That you can't get credit, can't get a mortgage but provide proof that you have improved, if you have. The fact that you are trying to find a 'story' and not willing to wait until you have improved your credit record tells me you haven't.