First time buyers,shared ownership

Jessiepig

Hi my daughter needs some really good advice regarding buying a shared ownership property with her partner.
She earns £26000 and he is self employed and has three years accounts which shows a £20000 income. Her partner also had a debt with Vodafone last year but paid it off and no ccj was issued.
What chances do they stand of getting a mortgage,?. I’ll be gifting them about £6000 and they would want a 5% deposit mortgage.
Who is the best ones to use?
Any help and advice anyone can give would be very much appreciated
Thank you all in advance

kingstreet

If this is a newbuild, they will have very limited options best investigated with an experienced independent broker.

A CCJ is not the only debt lenders will avoid. A default is just as bad and means three consecutive payments or more have been missed.

On a resale, they will have more 95% options, but a broker will still serve them better than trying to do it alone.

System

We just got a shared ownership mortgage with Leeds building society through a broker called metro finance who I've read use Leeds a lot but the broker was 399.00 which I've since read is expensive but I'm not complaining as they got us a mortgage when I thought we wouldn't get one.
Between us we earn 38000 and have credit card debt 0% interest of 2000, car on pcp 161 a month and also have 3 dependents.

Best bet is for them to see a broker who can advise.

Jessiepig

Thank you. I think he missed several payments and owed them £750 at one point. I guess that is going to go heavily against them then.

Jessiepig

Another question, they are looking at resale shared ownership property which I believe they will have a better chance at. Are there only certain lenders that will do 5% dep on shared ownership?
Also how do you choose a good mortgage broker? Thank you

poppet17

Don't do it is my advise. We have been very badly stung and we can do nothing about it. Our house will never be ours because of the way they are staircasing and if we sell they reduce the amount we get on the left over lease. We will never have anything to leave our children because we cannot afford to buy any more and we have a full repair lease. We are distraught, we will be stuck here for ever, never being able to move house but constantly having to pay out. Please don't do it.

Jessiepig

So sorry to hear your bad experience. I do agree that buying normally would be best but exceptionally hard in the South East where house prices are so high. Surely it!!!8217;s still got to an improvement on renting only

csgohan4

Jessiepig wrote: »

So sorry to hear your bad experience. I do agree that buying normally would be best but exceptionally hard in the South East where house prices are so high. Surely it!!!8217;s still got to an improvement on renting only

Shared Ownership is False Economy IMHO, you have a share of the house but 100% of the repair costs, how is that a good deal, some also won't allow you to staircase 100% or just not unachievable.


Buying a house is more than just 'cheaper than rent', you need to think carefully.


Plus when you want to sell, your buyer's market will be limited as such

Shellsey84

Sadly some of us don’t have the luxury of being able to buy 100% of a house. I am single, 200 miles away from home due to my job and have to rent which is so much money. I am on a low NHS wage so this is really the only option for me to get on the property ladder.
I am priced out of my home town.
I have heard horror stories regarding shared ownership but have also heard positive stories.
OP I hope you get the answers you need and get where you need to be

Jessiepig

Thank you, I think there are positives and negatives for all options but we have been doing lots of research and know several people who have successfully bought shared ownership.