Shared ownership/mortgage help?

[lollypop29]

Hi all

Im a single mum after leaving an abusive marriage this week.

I currently receive 1.5k child maintenance and universal credit (which I have applied for to help me back onto my feet...I currently am living with my mum and have absolutely nothing to my name after leaving my husband)

I am looking at shared ownership (I can't rent as I have a dog) with means to use the laddering system to buy the property outright...but I have failed the affordability assessment despite the fact I have over 25k a year coming in?

I also have a 30k deposit and will have the means to pay off the property in full within a year after I receive payout from my husband and inheritance money as my father passed away afew weeks ago.

What can I do? I don't really know why I haven't passed the affordability checker as the property price is 380k but the shared ownership is 95k and I have put down a 30k deposit?

How on earth can I get on the property ladder?!

Thanks - and please be kind.

I’m sorry for the loss of your dad. Apologies for bluntness but - how long do you expect to wait for your inheritance?
£380K for a shared ownership sounds like a new build?
You’ll get more for your money as a cash buyer and a wider range of properties when not restricting yourself to those offering shared ownership.
If it’s not practical to stay with your mum, I’d still look for rental first. Some landlords will accept pets with an extra deposit. Some just accept them.
You say you have nothing to your name, but you also have a £30K deposit.
So that sounds a bit confused… I would wait and get your bearings first. You’ve just lost your dad and ended your marriage. Good luck

Specifically on the affordability aspect - have you spoken to a broker? You may need one of the few lenders that will lend against CMS - though even then you may need some history of payment. Definitely talk to a broker though - they’ll be able to unravel you failing the check.

Wait until you have your inheritance and then buy a bigger share. I really think those 25% ‘ownership’ schemes are going to get a lot of people into trouble. I have seen someone who has taken out a 40 year mortgage to maximum affordability and little scope to increase earnings. Rent has been going up at a rate much higher than inflation and soon they will be paying market rent in addition to their mortgage. And they are responsible for all costs despite renting 75%.

Sorry to hear about your dad, and that you have been living with abuse. I agree with PPs that if you can wait for the inheritance you may be able to buy something better - longer term and without the pitfalls of shared ownership - like a flat with mortgage?
I agree it seems odd you haven't passed affordability with your income and deposit.
Fwiw my first property was shared ownership - initially bought a 40% share with mortgage and laddered up to 100% with an inheritance too. It worked well but every stage involved paying fees. In shared ownership there are lots of different companies making profit out of tenants - freeholders, management companies, and then there's the housing association for the rental element. It was a real nightmare when we came to sell it but we did manage to trade up for something better on the open market.
I don't regret shared ownership because at the time it was the only way we could afford to get on the housing ladder. In your situation might you be able to stopgap somewhere else until your inheritance is paid?
Best of luck

Most places (if not all) won't count CM as main/sole income for mortgage affordability as its not guaranteed. Also if you have £30k deposit in savings you are unlikely to be eligible for UC.

£1500 cm alone is higher than a nmw job would bring in, and way over my entire household income for me plus 2 kids. You are in an incredible position if you think you won't have to worry about getting a job to 'supplement' your income to support yourself and dc, even if this means paying for childcare, as UC will certainly expect you to find work.

Interesting that you've used different figures again from your other thread.

@Couldhavebeenme3

Most places (if not all) won't count CM as main/sole income for mortgage affordability as its not guaranteed. Also if you have £30k deposit in savings you are unlikely to be eligible for UC.

£1500 cm alone is higher than a nmw job would bring in, and way over my entire household income for me plus 2 kids. You are in an incredible position if you think you won't have to worry about getting a job to 'supplement' your income to support yourself and dc, even if this means paying for childcare, as UC will certainly expect you to find work.

Interesting that you've used different figures again from your other thread.

I'm just using rough figures.