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Property/DIY

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Shared ownership - affordability/mortgage

2 replies

Avam19 · 02/09/2023 19:21

I’m currently attempting to apply for a shared ownership property.

The HA referred me to a financial advisor who did the financial checks and said I could afford a 40% share of a £300k house. I have a 5% deposit. They submitted my documents to the HA. However, after chasing the HA I’ve found out that my application has been referred as I’m just over their preferred limit (I’m guessing 45%?) as I have a loan and also took on my husband’s credit card (he has defaults from covid times which we were advised wouldn’t help our mortgage application so I’m going it alone, the credit card had been transferred before we decided to look into shared ownership otherwise we wouldn’t have done it). What are the chances of them allowing my application to succeed if I’m slightly over their limit?

Also, whilst I have a mortgage in principle that will allow me to buy the 40% share, when I was doing my own searches, the companies that offer shared ownership mortgages don’t seem to offer enough to cover the size of the mortgage I would need - £114k. The results were coming back around £82k. If you have a mortgage in principle, is it likely once a proper check is done, the offer would be lower than the mortgage in principle?

The financial advisor made it sound like everything would be ok but I’m thinking the above doesn’t sound great for me.

OP posts:
RandomMess · 02/09/2023 19:22

Can your DH take out a new credit card and transfer his debt back or as much as possible?

Avam19 · 02/09/2023 21:47

That’s a good idea, thank you. My husband has now taken back about 80% of the credit card debt. I’ll let the HA know the credit card debt is less and hope that helps my application.

OP posts:
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