Shared ownership - partner not on mortgage

SDavies84

Hi everyone,

I'm looking at trying to get a shared ownership house to get on the property ladder. I have a partner, but his credit rating is quite poor, and also has quite a well paid job which means together we would earn over the threshold and not be eligible for shared ownership. I have been through affordability and have been accepted. My question is, can I just proceed on my own and my partner move in and not be listed on any tenancy? At what point what I need to say that he would be moving in? I wouldn't want anyone to think I was trying to hide anything!

Thanks all

gwynlas

If you aare single you might be eligible on your own but this would technically be fraudelent if you are living as a couple but people break up all the time. Given shared ownership often appears more expensive than the open market it might be better for you to look at gaining a mortgage through a mortgage broker then both of you will have housing security.

lika_86

Unless shared ownership is your only option, I wouldn't.

SDavies84

I think shared ownership is the only option as I don't have enough of a deposit/earn enough to get somewhere with a normal mortgage. My landlord is selling my rental, so need to get somewhere quickly, so don't really want to wait to build up more of a deposit. 

I'm currently taking to a shared ownership broker. Would it be best to tell them my partner would be moving in so they could advise if I would still be accepted?

Myci85

SDavies84 said:

I think shared ownership is the only option as I don't have enough of a deposit/earn enough to get somewhere with a normal mortgage. My landlord is selling my rental, so need to get somewhere quickly, so don't really want to wait to build up more of a deposit. 

I'm currently taking to a shared ownership broker. Would it be best to tell them my partner would be moving in so they could advise if I would still be accepted?

Last year I was looking into buying through SO in just my name, for similar reasons that my partner has adverse credit. I spoke to the HA to ask if it would be allowed to be fully in my name and both of us live there, and they said yes, providing his income didn't push us over the eligible limit. So my feeling is they may be unlikely to agree to this in your situation as you have said his income included would mean you would not be entitled to apply. 

Have you spoken to a mortgage broker about the chances of him getting a mortgage on his credit history? There may be lenders out there who would consider him, and from what I read, it is always best to buy a full property than go down the SO route of at all possible. The interest rates may be a bit higher, but it sounds like you've got a good combined income. 

Bigphil1474

Every shared ownership scheme I've looked at is more expensive than a normal mortgage deal but if it's your only choice.... Personally, I wouldn't try and hoodwink the broker in this situation as it could have repercussions. You said you wouldn't want anyone to think you are trying to hide something, whilst you are trying to hide something. Presumably the threshold is there for a reason. Could you not carry on renting, get your partner to sort their finances out, and look to buy in a couple of years?

pops2024

I’m in a very similar situation.  Landlord selling the rental and having spoken with a mortgage broker was advised to look into shared ownership as a sole purchaser.  Have read on some sites that if purchasing on my own (even though my family will be living with me) only my income would be taken into account.  Can’t get clear answers on this. 

My husband is from overseas but despite working and having settled status we were told we’d need anywhere upward from 15% as a deposit on the normal open market.  Sadly despite good incomes we are falling through the cracks of getting help now the help to buy scheme is closed!  And with 2 young kids it’s not as simple as “move back home and stop renting to save your deposit” 

iza_belle1

I agree with the suggestion re contacting a mortgage broker to see if you can get a normal mortgage. They are usually free to just call up and will take account of all your circumstances/partners adverse credit etc and can search the whole market. I mean, you have nothing to lose by checking. I used L and C and it took about half an hour call just to have an initial assessment. 

annetheman

SDavies84 said:

I think shared ownership is the only option as I don't have enough of a deposit/earn enough to get somewhere with a normal mortgage. My landlord is selling my rental, so need to get somewhere quickly, so don't really want to wait to build up more of a deposit. 

I'm currently taking to a shared ownership broker. Would it be best to tell them my partner would be moving in so they could advise if I would still be accepted?

It could work but is it the best option really?

I am selling my SO at the moment and the eligibility criteria for my buyers - household income under £80k i.e. anyone over 18 living in the property involved in the purchase - is on the questionnaire they fill in at the start, and it will be checked at least 3 times - broker/EA, housing association, solicitors.

As a seller I would not proceed with you even if it was just your name on the lease, just because it could put my sale at risk (and thus my onward house) if the HA does want to consider your partner's income and thus rejects the buyer. If somehow the sale progresses and the lender finds out, consequences could be much worse, still.

Although once you're in, you're golden. I am over the threshold now but wasn't when I bought. I also have a small deposit (only 95% LTV) but still managing to get a normal mortgage in London - if your income is combined, perhaps you are too?

Maybe speak to a broker to see if whatever small amount you could save in a year or so might in fact be enough to spare yourself the SO leasehold nonsense and actually get on the ladder - SO is not a means to do that, in my opinion; it is a just a stable form of renting with more responsibilities (I am all for it versus AST, worked well for me, but it is not a "step on the ladder" and it is not ownership). You do get to build a small bit of equity, so there's that, but not a patch on real ownership.

I totally get wanting to start building equity ASAP with a tiny deposit, but if you have the option at all, that is what I would go for in your position.

kingstreet

pops2024 said:

My husband is from overseas but despite working and having settled status we were told we’d need anywhere upward from 15% as a deposit on the normal open market 

What reason was given for this? Someone with settled status has the same eligibility as a British citizen so a higher deposit wouldn't normally be required for that reason.