Help with shared ownership mortgages

ticketyboo2

I really need some help please! I have been trawling through all sorts of mortgage company websites trying to find a mortgage lender that will be able to help me and my partner. This is the situation:-

We have a combined income of £41500 and need a mortgage for £125000 for a shared ownership property in which we will own 50% of the property and pay a rent of £170 per month on the remaining 50%. I have slightly adverse credit history but this goes back some years (probably about 4) and entered into a debt management scheme in 2002 - never missed a payment on that but because of the company paying my debtors late have ended up with recent defaults registered against my name (have checked with experian). My partner's credit history is very good so I am hoping this will help.

So to sum up, I need a 100% shared ownership mortgage with slightly bad adverse credit history.

Can anyone enlighten me please on who would be best to approach in this situation?

Thanks.

homer_j_3

how is the income split

ticketyboo2

The income is as to £21500 for one person and £20000 for the other

MortgagesInc

Hi there - unfortunately I think you may struggle - the only people I know who would consider it are Preferred, and they're rates range between 9% and 12%!

picklepuppy1982

avoid preferred at all costs they said that they would lend on the property gave me mortgage offer and then said that they were not happy with lease but didn't actually tell my solicitor there was problem i only found out because i rang up about insurance and they were like oh we aren't dealing with your case any more some one should have told you!!!

Dan_Collins_2

Preffereds rates are a little harsh, but if its what you want they will do the job, just it will cost you a bomb. They a little slack butyou will get there in the end. I have had a few go through and been ok, just a lttle longer and more expensice than the rest.

The Leeds Building Society will credit check and not score, they will go up to 100% of share up to 75% of the value of the property. Them and Woolwich (Who score harshly) are the only mainstreams that will go 100%. If its historic it will be worth a crack! Where are you based?

Dan_Collins_2

I am asking about your hometown as I know the manager of the Stevenage branch very well, she will look after you, but if your miles away no point!

ticketyboo2

Thank you for your advice Dan, I think we have it all covered now - got 3 IFA's working on it for us. Nice to know we can get some good advice on here when we need it though. I would never go for a rate that's as high as 9 or 12% and have so far managed to get a rate of 6.89% fixed for three years but i haven't been told at this stage who it is with (i suspect it may be Leeds).

For people in a like situation to myself - I've found that it's really hard to look for a good rate yourself when you're in my situation - best to leave it to the experts as they have a much better idea of the market and have access to things that the normal everyday consumer wouldn't.

Dan_Collins_2

True, but with 3 lenders that offer 100% and one of them so high a rate it is not worth did you really have to waste 3 ppls time? 2 of them will do a lot of work for nothing, 1 of them will do a lot of work for not a lot!

Not being rude, I am lucky and work on a refer basis so rarely lose, but its not fair to waste ppl's time!

sundayodunsi

Hi
I hope yu read this as some of the housing association might not let yu buy the other parts of the share for a long time.and also the figures just dont add up this days.i pay 250 rent for a property i own 40% of and morgage is 398 with abbey national (6.86%) and another 100 pounds monthly for service charge making a total of 748 monthly.
When i bought the property in 2004 it was valued at 175000 now 205000 meaning the value of the 60 % i dont own is now 123000(if i decide to buy it now instead of 105000 2 yrs ago).
If I had only being patient OR just seek a property outside london but still within the M25 example luton 3bed semi detach goes for btw 145000-200000 then i wont be paying what am paying now,BUT far less or same but i will have the whole property.with your salary yu can get as much as 175000 mortgage.
SO BE VERY CAREFUL AND MAKE SURE YU HAVE EXHAUSTED ALL AVAILABLE OPTIONS.