Shared ownership with bad credit

[Emmas85]

Hi,

I have contacted some companies but thought I'd ask on here to see if anyone has been in a similar situation.

I am a single mum nearing 40. I have struggled with money in the past but am now have a stable job although a quite low income. Looking into the shared ownership scheme I think this would suit me although my credit rating is bad. I have 2 ccjs which come off my account in 2022 and defaults but I am working on clearing these and they will be clear by 2022. Hopefully by then I will have no outstanding debts.

Has anyone in a similar situation managed to secure a mortgage?
Any advice would be great please!

What have the companies you've contacted said to you?

To be honest, at 42 you should be thinking about paying your mortgage off, not starting to take one out.

There are lots of clips on youtube about how you can rent and invest your money and still make as much as you would have made on property over 30-40 years. I'd be inclined to work on this and you can make a start now, not in 2 years.

I have a shared ownership property.

From a lenders point of view, they will take into account your ccj's which are not good when applying for any credit.

Not all lenders even consider shared ownership mortgages, so your options are already a lot more limited in terms of which company you can go with.

I have had to jump through hoops with my latest remortgage as shared ownership are not a great move from a lenders point of view as they only have 25% or 50% etc to recoup any costs if you do not pay.

I would speak to a mortage advisor, mine has been invaluable. Every lender and housing association have different rules, my MA was on top of all of these.

Also. You say you are on a low income. Which means you can borrow less on a mortgage. Bare in mind they will stress test you against being able to afford the repayments AND the rent.

The rent counts as an regular bill, so have a look and see if you can afford it. While the Interest rates have been low so, there was a point where my rent side was higher than the mortgage.

There are lots of clips on youtube about how you can rent and invest your money and still make as much as you would have made on property over 30-40 years. I'd be inclined to work on this and you can make a start now, not in 2 years.

This sounds dubious...

My dm got a shared ownership mortgage in her 50s. I’m assuming she had terrible CR as she’s often been in debt. She did put down quite a large lump sum but she got a mortgage until 70 through a broker. I think you need to find a really good local broker with good personal recommendations. They will be able to tell you what’s realistic.

@NotSuchASmugMarriedNow1 I know loads of people a similar age who are no where near paying off their mortgages, including me! Mine runs until I'm 67m

OP, definitely talk to a mortgage broker. They'll tell you your options.

smallgood they are just showing you what is possible - not actually trying to get you to sign up or anything

for example

I would speak with a mortgage broker (especially if you can get someone to recommend one to you). They will know the lenders that would be suitable for your situation and advise you accordingly. I can't see your age being an issue either, I know considerably older who have mortgages running until not far off 70! Not that this is ideal, but again really depends on the amount and your circumstances. Good luck.

@NotSuchASmugMarriedNow1

It wasn't a slant towards you, more that I find the claim itself dubious.