Help to buy/shared ownership/defaults etc

Rondoten10

Hello

I have three old defaults, last one settled August 2019.

Would i still be eligible to use the help to buy/shared ownership scheme with a £5000 deposit at some point next year?

haras_nosirrah

Hi

I am a shared ownership specialist mortgage advisor

How much is the default?

As a general rule with defaults if it is registered over 3 years ago it would need to be settled prior to application
If it is registered within the last 3 years it would need to be settled 12 months prior to application.

There are exceptions though depending on size of default

robboa

Defaults

3800 defaulted feb 2016 paid off Aug 19
50 defaulted dec 15 paid off july 19
359 defaulted jan 2016 paid off feb 18

haras_nosirrah

In that case you could proceed now with a minimum 5% deposit

Rondoten10

ok so should be all good then? what's the process should i still approach a broker in the same way you would if you were going for a normal mortgage?

haras_nosirrah

The process is that you would approach a broker (recommendations or if you don't know one who does shared ownership search the boards here and pm a broker who you think may be able to offer advice)

With shared ownership you first have to find a property and pass the affordability assessment calculator as the rents and service charges are all different depending on the property.

Once you have found a property you would obtain an agreement in principle via the broker

Rondoten10

ok thank you for your help - would the broker need to be specialist adverse or just a normal broker?

haras_nosirrah

shared ownership specialist is probably more important than adverse

[Deleted User]

haras_nosirrah wrote: »

With shared ownership you first have to find a property and pass the affordability assessment calculator as the rents and service charges are all different depending on the property.

Once you have found a property you would obtain an agreement in principle via the broker

I am not a shared ownership specialist like yourself but curious if you would see the benefit in knocking through a generic AIP on assumed values to check can get past the credit check. Obviously not many 5% shared ownership companies to start with so already limits an already limitted market.
Or are you just assuming that Kent will do it anyway? Or otherwise you have done so many of them you know whats going through and what isnt. (I generally dont AIP 90% of my prime clients for this reason)

If i see someone with past adverse I knock through an AIP as worst case with heavy caveats about affordability changing depending on property

haras_nosirrah

with about 2,500 shared ownership mortgages done I generally know what will go through from seeing the credit report which we always get upfront.

Once the assessment is done and passed the housing association give 5 working days to get an agreement in principle.

We can do the aip upfront but what market value, what rent or service charge? what share? - all this determines the final figures being used. If we do an initial aip with a hard search it needs to be redone anyway and then that is two searches on someone who is already credit impared.

Rondoten10

final questions on this matter. what should the process be for this?

Approach a broker
Find a house
tell broker you've found house

Or should it be

find a house
then approach broker


If anyone could recommend shared ownership brokers that would be great?

I'm in the south east but don't know if it location matters broker wise?

Thanks