Shared ownership

stereb8792

Hi, I am trying to buy a property however I earn £26,000 annually but I was told by a financial advisor something about wages having to be 45% of income but do not count any other income such as tax credits. I was told that for a £350,000 property for a 30% share I need a deposit of £48,500 which came as a shock because when I registered for help to buy I passed their affordablility to be accepted. I was just wondering if I went for a property at £235,000 whether this would be affordable, thanks.

haras_n0sirrah

Hi - I am a shared ownership mortgage specialist who is on the panel for a couple of housing associations (my former username was haras_nosirrah if you want to look up my credentials - I lost the account in the switchover)
The 45% is correct - your mortgage, rent and service charge cannot be more than 45% of your net income after deductions and debt payments. We do however use tax credits and other income (maintenance, tax credit, dla, child benefit etc etc)
Obviously I don't know the rent and service charge of the property to say whether it would pass affordability but it does factor in additional income.

stereb8792

Ok thanks for your input, I really appreciate it. So rent would be £561.46 and £27.46 service charge.

[Deleted User]

Also do you claim Universal Credit or are you still on tax credits ? Enter your figures into “entitled to” and put the “rental element” cost of the shared ownership property, as UC can help towards that portion of the cost of shared ownership. The site may assist as to whether UC is good for you and if they will help towards shared ownership costs 

stereb8792