Poor credit shared ownership mortgage?

Emmyflower

Poor credit shared ownership mortgage?
27th Nov 16 at 11:52 PM
#1
Hello

We started the process of buying a house. Mortgage was agreed in principle. Last week barclays rejected the mortgage!!!
Husband has some defaults on his report.
Contacted Which? Mortgage broker last thursday and they said they will find us something. Is this true?

We have a 15% deposit. We only need to borrow a 25% share which is 46, 000 after the 15% deposit is taken off.
Husband earns 30,000 a year.

Please help. Will we get any offers & will it get accepted and go through???

Many thanks

kingstreet

No way of knowing from the information given.

You need to establish with your chosen broker what options it has for you.

David_White

Shared Ownership can be tricky with adverse credit although depending on the exact details there may be a couple of options.

Any particular reason you want a shared ownership mortgage?

Emmyflower

We had hardly any deposit so knew we couldnt afford open market. We found a house on shared ownership which is in a good area next to my daughters school. She has just started in reception.
We also thought borrowing a lower amount would mean my husband would definitely get a mortgage.

Bonfire_Bride

Glad you posted this in the right section.


You need to speak with an adverse credit mortgage broker...they can seriously be worth their weight in gold.

Emmyflower

Thank you! Do you think we will definitely get some sort of offer? I am devastated we may have to pull out . We have been living at inlaws for 10months to save and i had a baby 3 months ago. Its been a nightmare. Need my own home.

Emmyflower

Yes.
It was barclays apparently.
We have now contacted Which? Who are trying to help us. Im just worried. The broker rang today to say one company they were consulting said they want 3 more months of debt free before lending?
The broker has gone back to say can we negotiate a higher deposit or interest rate as we cannot wait 3 months as we are part way through a sale!

Emmyflower

The defaults are settled and its been nearly 2 years no new debts.

NOVAMET21

Is the value of the house £184,000?


As you said you got 15% deposit for 25% share, that would be £6,900.


The mortgage and rent together will be around £500 mark depending on the interest rate and repayment years. This is very affordable for £30,000 salary.


However, are there any other monthly outgoings if yes how much?

Emmyflower

No the house is £215,000
We are buying a 25% share which they are asking for 53,750
We have a 15% deposit so only need to borrow 46,000


The rent is 440 pcm
Its the bad credit thats the issue