Shared Ownership - Affordability Assessment

eng1991

When purchasing a property on shared ownership, you have an affordability assessment and then a mortgage advisor appointment.

How different are the questions?

Also what does HEC mean in regards to these?

izoomzoom

I suppose we had an affordability assessment when we first met with our MA. He basically asked for all our income / debt / expenses, looked at some of our paperwork, but didn't take any proof. He told us what we could remortgage to.
After the valuation and our agreement to proceed (we recently staircased to 100%), we met MA again, but had to bring latest actual payslips, SA302s etc as that is what he needed to actually submit our mortgage application.
At affordability stage, it looked like HSBC was best for us, but 4 weeks later, we went with another mortgage provider.

Can't advise on HEC though.

kieran3184

You basically need to have around 45-50% of your income free after all your projected mortgage, bills, rent, outgoings etc to pass the affordability test

haras_n0sirrah

I am a shared ownership mortgage specialist and do both affordability assessments for the housing association and mortgages for clients. I do the assessment first as people have to pass the affordability calculator for the hca. I would also check against lenders calcs to make sure that also fits. I then get paperwork from the client and if they want to use me as a mortgage advisor would do the aip. There is no requirement to use the same advisor for you mortgage that does the affordability check.