Can I get a Shared Ownership Mortgage with Bad Credit?
100% Of The Share You Would Like To Buy With Bad Credit!
A Shared Ownership Mortgage can help you get on to the property ladder sooner as you only need a smaller mortgage. For example if the value of the property is £200,000 and the share you want to buy is 25% e.g. £50,000 I know of 2 mortgage lenders that will consider you for the full £50,000 so you would not have to put down a deposit. You can also add fees the lender charges on top of this amount!
I also know of other mortgage lenders who will lend up to 95% depending on how good your credit history is all the way down to 75%
If you have a clean credit history, you may be able to get a Shared Ownership mortgages (SO) from a High Street lender, but what if you are refused once they carry out a credit search? Then you have a problem because there are very few mortgage lenders that offer adverse credit mortgages for a Shared Ownership purchase.
The lenders will consider you with a variation on the criteria below:
- CCJ’s or Defaults up to any monetary value subject to underwriter approval.
- Mortgage arrears in the last 12 months – one 1 late payment in the past 12 months (but 0 in the last 6 months).
- Any adverse over 12 months ago may be ignored but as with any adverse, a plausible explanation surrounding the circumstances will be required.
- Loans from £3,000 to £150,000.
- Option to have interest only which is very handy if your mortgage term needs to be short because of retirement for example.
Firstly, look in the area you are looking to buy a Shared Ownership property to see if there are any new build or ‘second hand’ property’s you like, being offered for sale with the Housing Association (HA) for that area. Register with the HA as they will keep you informed of both new build and second and properties that come onto the market.
Secondly look for re-sales of Shared Ownership properties with Estate Agents. If the HA cannot find a buyer, they are then offered for sale via Estate Agents just like any other property.
Once you have found a property, call me with the details including the market value, share you want to buy and any deposit you would like to put down. From a 10 minute discussion, I will be able to determine if you could get a mortgage.
Shared Ownership Mortgages are a great way to get on the property ladder because where else could you buy a 1, 2, 3 or 4 bedroom property for a fraction of the market value that you can call a home.
To find Shared Ownership Housing Associations in your area click here
For more information on Shared Ownership (SO) Mortgages, please call me on: 01494 526400 or complete my online Enquiry Form.