Shared ownership but I have a CCJ

bsuend

Hi everyone. Looking for some advice. I'm new to this so if I sound stupid, please try and educate me.

I'm 30 years old and have been renting from the age of 23. Recently my parents died and I was left with inheritance of £60,000 after their house was auctioned off and the money was split between my siblings and I.

I wanted to look into a mortgage due to having this huge downpayment, but upon looking at my credit file found some very worrying details. I have a CCJ for a loan that was £1,700 but it was registered at a previous address so I didn't know about it. Of course I can use some of my money to pay any debts off I have - but looking at my credit file, it'll be a while before any mortgage lenders consider me.

I'm in full time work aswell, but only earn 17,000 a year.

I turned my attention to shared ownership. I've seen a property I'm interested in and there is the option to buy a 50% share for £55,000. It's a new build 2 bedroomed house.

I'm wondering if it would be possible for me to pay for this share outright with my large lump of cash? Or do you have to take a mortgage out with shared ownership?
I saw on another forum that you can't partake in the shared ownership scheme if you have a CCJ. Not sure if they'd be more slack with me due to the fact I'm offering such a large upfront payment.

Any advice is welcome!

ACG

If 50% share is £55k and you have a £60k deposit (or even £50k after costs and spending some) even if the CCJ was registered last week, there will be lenders.

Speak to an experienced broker. Depending on the finer details you may have normal rates available to you or even marginally above for maybe 2 years.

bsuend

Thanks for your reply!

So there is a possibility that I may be able to get a regular mortgage regardless?
I had wondered about this, because locally there is affordable new build housing being built. I went along to get some details and was told that a new build 3 bedroomed house on that plot would be £122,000 and I'd be given a 20% interest free loan from the government - with my downpayment of around £60,000, I would need a mortgage of about £35,000, if I wanted a house on this plot of land. However, I'm not sure how feasible that would be due to my horrible credit history

ACG

Potentially, using the HTB scheme (which it sounds like this could be) will limit your options but yes in theory it is possible.