S/O and affordability

Silence101

We're looking at buying a S/O property, and while we went through the property developers check without a problem when we saw the IFA they seemed to say only one provider would offer us the mortgage necessary. My worry is that if that provider declines the mortgage after more checks/surveys we won't be able to go ahead with the sale.
We've paid the reservation fee so I'm a bit worried that we will be in a position to lose that money if something goes wrong.
Not quite sure what my question is, just a bit stressed already because of the possibility that it'll all go pear shaped!

samanthab616

Hi we are going through shared ownership now, went with Melton Mowbray as our mortgage provider, quite slow will have had application for 3 weeks on Thursday but they've kept up to date and the first telephone appointment with their MA she checked affordability etc, she was very helpful. However still waiting for a mortgage offer/decision!

Silence101

That's another worry, the developers have been very clear they expect the exchange to happen in 28 days... I probably shouldn't stress as it's basically out of our hands but still...

kingstreet

Do you pass the Government's Shared Ownership affordability calculator?

Silence101

I filled in the "shared ownership sustainability calculator" form, and we come up as 39% debt to income ratio, which is OK if I understand the figures?
(Can't do a link as I'm new)

Silence101

And income multiple is 2.99

kingstreet

Form?

The SO calculator is an Excel spreadsheet...

Silence101

Yes, sorry, that's what I meant.

haras_nosirrah

I do shared ownership mortgage calculations for a housing association and am a mortgage broker who specialises in the scheme. The rule is that your debt to household income ratio must be between 35% and 45% on the HA calculator including all debt repayments, mortgage rent and service charge so it would seem you fit there. Do you have a 5% deposit? That could be a reason for limited providers. There are a few lenders who do 5% deposit but most are regional building societies and only 1 lends all over the uk. If you have a 10% deposit you should have more than 1 option

Silence101

Our deposit is just over 30% of the share we want to buy, but we have only one income for 2 adults and 2 children (which is why I think that they think we are at risk of not affording it)

haras_nosirrah

no idea why just one provider then with that high a deposit- child benefit income, tax credit income can be included - worth investigating further.