shared ownership with bad credit

We asked our expert mortgage adviser on bad credit about getting on the property ladder with little or no deposit and a bad credit history…

You might think it isn’t possible to get a mortgage with bad credit, but you may be pleasantly surprised.  Here is what you need to know about getting on the property ladder when you have poor credit.

Read on here…

Shared equity and shared ownership, these two options can be confusing when you are new to the housing market, can you explain the differences?

Shared equity

Help to buy/Shared Equity Loans is a government scheme.

It is available to both first-time buyers and home movers, the main restriction with this scheme is that it is only available on new build properties.

It means you can purchase a home with a 5% deposit.

You put in 5% and the government puts in 20%.

So, your mortgage will be 75% of the property value.  This means the government owns a 20% share of your property.

You have the option of repaying the government equity of 20% at any time without being charged a penalty.

For more information please click here

Shared ownership

Shared ownership schemes allow buyers to obtain a mortgage to buy a share of a property normally ranging from 25%-75%.

You then pay rent on the remaining share to the housing association/private developer that own the building.

You can get a mortgage on a shared ownership property with no deposit depending on your credit history.

The higher the share of the property you buy the lower your rent payments will be.

Also, with shared ownership homes you often get the opportunity to buy more of a share in your home.  This is normally allowed after you have lived in the property for a certain period of time.  This is known as ‘staircasing’ and again the more of a stake in the property you own the lower your rent payments will be.

For more information please click here

I have bad credit and a small deposit of around 5%, are there any options out there for me to get on the property ladder?

Yes, there are options available depending on how long ago your bad credit history was, for example, if your bad credit was over 2 years ago we may even be able to get you a 95% mortgage on a standard purchase – so you own the entire home.

If credit issues are more recent we may be able to help with a shared ownership or right to buy purchase.

I have bad credit and no deposit but desperately want to purchase my own home, what can I do?

Currently, the only option with no deposit would be a shared ownership mortgage, there are some specialist lenders that will lend up to 100% even with a bad credit history.

I have heard that when purchasing a shared ownership, you might be charged a ‘premium’ on the purchase, I don’t have any extra funds to put down?

A premium can sometimes be charged on second-hand properties where the current owner has carried out improvements to the property.

This isn’t typically the case, most shared ownership properties do not come with a premium attached.

If you would like to explore your options contact us today for a free no obligation quote on 01604 328 091!

We look forward to hearing from you.

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