• Shared Ownership Bad Credit Mortgage Broker

Shared Ownership Mortgages when you have Bad Credit

At Plus Financial Solutions we understand how hard it can be to obtain a mortgage when you have bad credit especially if you are looking to purchase a shared ownership property.

YOU HAVE COME TO THE RIGHT BROKER!

We are an adverse credit specialist and are experts in helping customers just like you. We even have mortgage lenders who will lend up to 100% of your share price allowing you to buy with absolutely NO DEPOSIT!!

Shared Ownership Bad Credit Mortgage Broker

Despite what many people believe buying a shared ownership property is very similar to buying any other property.

Shared ownership is a method of buying a share in a property and paying rent for the remaining share.

Typically, you would purchase a share between 25% and 75% of the property and pay rent to the housing association for the remaining share.

Normally you will be able to buy the additional share in the property in the future (staircase) allowing you to eventually own the whole property.

If you decide to sell in the future you would just sell your share like you would any standard property.

When buying a shared ownership property as well as applying for a mortgage (when required) you would also need to apply to the relevant housing association to be approved to purchase the property.

If you have any questions contact Plus Financial Solutions today! we will be delighted to hear from you!

Find out how much you can borrow today!

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What bad credit can we accept?

We have access to dedicated bad credit mortgage lenders who are happy to consider applications for people with poor credit scores, which include people with CCJ’s, Defaults, Missed Mortgage Payments, and even ex-bankrupts.

Below is just some of the credit issues that will be considered:

  • Missed payment on unsecured credit (up to a maximum of 4 in the last 6 months)
  • Defaults (none in the last 3 months)
  • Count Court Judgments (None in the last 12 months)
  • Ex Bankrupts (3 years after discharge date)
  • IVA (3 years after discharge date)
  • Mortgage Arrears (none in the last 6 months)

What Housing associations can we work with?

As a professional mortgage broker, we are able to deal with almost every housing association. Most will also work with most of our mortgage lenders. We will work closely throughout your mortgage application to ensure the process goes as smoothly as possible and quickly. This includes Help to buy shared ownership purchases.

What property types can be accepted?

We are proud to be able to offer bad credit shared ownership mortgages on both house and apartment (flats), this includes properties that are close to commercial shops and even apartments up to the 8th floor.

How much can I borrow?

Affordability criteria can be challenging to work out on a shared ownership property, like most mortgages the lender will fully assess your ability to repay the borrowing and will characteristically not lend more the 4.5 times your annual income. It is also important to factor in the rent payment and any service charges in assessing your ability to repay the mortgage. As part of the application process, you will also need to pass the shared ownership housing associations own affordability assessment. A good starting point would be to visit www.helptobuy.co.uk and complete their affordability assessment, this will give you a good idea of what is going to be affordable. If you have any questions contact us today, we are happy to help.

How to I apply for a shared ownership mortgage?

Whether you have bad credit or perfect credit at Plus Financial solutions we always recommend you obtain a mortgage agreement in principle before you start looking at properties. This will not only give you piece of mind that you can obtain the amount you will require but it will put you in a better buying position when the time comes to put an off in on a property. While you won’t yet know exactly how much you are going to borrow an agreement in principle with Plus Financial Solutions will provide you with both the maximum loan available and importantly the monthly cost, this will put you in a very informed position and hopefully prevent any surprises later in the purchase transaction.

What income will I need?

Bad credit shared ownership mortgages are the same as any normal mortgage. The lender will require you to either be employed (minimum of 6 months) or self-employed (minimum of 1 year) to be able to consider any application. In addition, they will often be able to use additional income from Child Tax Credits, Working Family Benefit, Child Benefit, pension income, maintenance, and many more. Contact us today if you have any questions on income or affordability on a shared ownership property.

Do I have to be a first-time buyer to qualify for a shared ownership mortgage?

NO, while shared ownership is aimed at helping people get onto the housing ladder who cannot afford to purchase a house outright this does not mean it is only for first-time buyers. However, shared ownership property is only normally available for people who will only own the shared ownership property on completion. This means you cannot buy a shared ownership property to rent out or as a second home, it would need to be your only home and main residence on completion. Home movers are allowed where you are selling your current property.

Shared Ownership Remortgages:

Just like any other mortgage, you will want to ensure you are always paying the lowest rate possible, even if you have bad credit. You can still Remortgage a shared ownership property and at Plus Financial we can provide you with guidance on the best rates available to you, the market available on a shared ownership property is slightly smaller than that for a standard property and this is even smaller when you have poor credit, we recommend you seek specialist advice for a suitable mortgage broker like us. If you need any help with a bad credit mortgage contact us today for great advice!

Shared Ownership Bad Credit Mortgages

Real Case Studies

Client:  E Travis

Situation:  This client came to us after having their mortgage application declined by the housing associations recommended mortgage broker. After completing our simple enquiry form we contacted the client to properly review their options. Mrs Travis… had 2 defaults from 2016, bounced directs and 2 recent missed payments on her credit card. We were able to match a lender to Mrs Travis application; the lender ignored the previous defaults and the missed payments. The application was agreed within 4 weeks and the customer was delighted to complete on her shared ownership property allowing them to finally get out of rented accommodation. The customer was extremely happy that she contacted us to help with her mortgage after being told it wasn’t possible.

“I dealt with David Baaye, he was excellent! David went the extra mile with my case, he was so professional, answered any questions I had and always replied quickly. which was good for me as I tend to panic a lot. I would definitely recommend Plus financial solutions. Thank you, David. ”

Shared Ownership Bad Credit Mortgage Broker

Client:  S Stevensons

Situation:  Mrs Stevensons…. Came to us just after being declined by her bank and another “specialist broker”, the customer had already paid a £1000 reservation and was desperate to be approved for a mortgage. The customer had several defaults and mortgage arrears from less than 2 years ago and recently became self-employed. Thankfully we are able to help the client obtain the mortgage they needed, despite having some credit issues we were able to put the client with a lender who was happy to offer the client funding for her shared ownership property.

“My situation was very time-critical and I wish I had found Plus Financial Solutions a lot sooner. David was very prompt to respond following my initial enquiry, as well as throughout the process. He was happy to answer any questions and put my mind at ease when I became anxious. At the same time, he was honest with me about my situation and did not make unrealistic promises. He is very professional and certainly knows his business. I would not hesitate to recommend him ”

Shared Ownership Bad Credit Mortgage Broker

Client:  Miss Ingram

Situation:  This customer came to us because she had bad credit and no deposit, she was currently living with her parents and was a first-time buyer. She had already seen a shared ownership property she liked and wanted to put in an offer. Despite the poor credit history and lack of deposit we were able to offer Miss Ingram an agreement in principle within 24 hours. She went on to complete on her dream shared ownership property within 6 weeks and is delighted to have moved out of her parent’s property.

“Plus financial solutions provided me with a mortgage where others could not. David Baaye was very helpful and efficient and more than happy to explain anything I was concerned about which I found very important in being a first-time buyer. I would highly recommend the company and David in particular to anyone ”

Shared Ownership Bad Credit Mortgage Broker