Shared ownership after sale

Loveks

I currently own a house worth approx 160k with a mortgage of just under 100k.

I earn 32k per year, but over the years built up debt and as such owe 30k on a debt management plan with stepchange, approx 5 years left. Some of this is joint debt or my wife's but most in my name. Never missed a mortgage payment.

For various reasons we need to move urgently. Selling and moving into rented is an option but I fear we will never get back on the housing ladder.

Could we buy a shared ownership house, buying the share in cash so no mortgage (we would use profit from house sale)?

And would we be able to do this with such terrible credit history?

Or should we sell up and move into rented?

Elfbert

You would have to check with each individual HA - and remember that new build SO often come with different criteria than resales.

But, generally speaking, they aren't too keen on bad credit history and newbuilds always want you to 'maximise' your spending power, so I've never seen one that won't make you buy a bigger percentage with a mortgage, if you have a large cash deposit.

Do some research on your local HAs and what's available ( https://www.sharetobuy.com/sharedownershipproperties ), but I think you may be restricted to renting.

ap1985

Loveks wrote: »

I currently own a house worth approx 160k with a mortgage of just under 100k.

I earn 32k per year, but over the years built up debt and as such owe 30k on a debt management plan with stepchange, approx 5 years left. Some of this is joint debt or my wife's but most in my name. Never missed a mortgage payment.

For various reasons we need to move urgently. Selling and moving into rented is an option but I fear we will never get back on the housing ladder.

Could we buy a shared ownership house, buying the share in cash so no mortgage (we would use profit from house sale)?

And would we be able to do this with such terrible credit history?

Or should we sell up and move into rented?

3 years ago when I was in a DMP my husband and I looked into shared ownership as we couldn't see any other way to get onto the property ladder. But unfortunately we were told because of my credit rating we couldn't get a mortgage for shared ownership. Because of that, we decided to really cut back and try pay off all my debts which we did and now we have managed to buy a new build property and get a high street mortgage. My advice would be to try and get out of the DMP as quickly as possible (if it is possible).