Shared ownership (or other options) if I can't afford the mortgage ...

Hedgerow2024

Essentially in 3 months time my landlord is selling the home I've been living in for 10 years - but giving me the option to buy it.

I doubt I will be lent 100% of the mortgage required, but have been looking at shared ownership options. However usually these arrangements are for properties that housing associations already own (typically new developments) or are selling on behalf of a developer.

My issue is that the owner in this case is my landlord (so not a housing association) - so I'm looking for a 3rd party (could be anyone or any lender) to take a share in the ownership (rent typically paid on the part of the mortgage I don't own). I don't think a housing association would be interested if they aren't already involved in the property (ie. are selling it themselves), so this is unlikely - but would a bank or building society be interested?

What products/lenders/options would be possible options here? Many thanks for any suggestions.

feynman33

If you're in Scotland this option may available to first time buyers, with the government owning the unbought share. Anywhere else you likely don't have any available options for buying that specific property.

Hedgerow2024

feynman33 said:

If you're in Scotland this option may available to first time buyers, with the government owning the unbought share. Anywhere else you likely don't have any available options for buying that specific property.

Sadly I'm in England :-)

The closest product seems to be Barclays Springboard mortgage - where a 3rd party (aka 'Helper') is willing to put 10% of the purchase price in an above average savings account for 5 years (6.43% AER) - which acts a guarantee should the applicant default - after that period the Helper their savings back plus the interest (circa 18k profit on 50k savings). The applicant pays no deposit and the mortgage rate is discounted for a time, then reverts to standard variable.

All I need to do is find someone willing to invest £50k for 5 years. Not hopeful at all !

housebuyer143

I don't believe mortgage lenders are interested in these propositions unless they are actual shared ownership schemes. 

amnblog

Skipton Building Society have a product called Track Record for this kind of circumstance.

It rarely fits in terms of affordability however.

ACG

Do you have a relative who will allow a mortgage lender to take a charge over their property for 5 years? 
That way you can purchase with literally no money and the lender has their security. 

Hedgerow2024

Sadly no, that's not an option. The Barclays option also means the 'Helper' will most likely have to be family, not any 3rd party, so that's probably another obstacle. Looking at Yorkshire Building Society's 5k mortgage and the one mentioned by amnblog above.

Hedgerow2024

amnblog said:

Skipton Building Society have a product called Track Record for this kind of circumstance.

It rarely fits in terms of affordability however.

You're right - failed the initial affordability check (no debts, no credit cards, high income).