With all the doom and gloom over housing market, you might be surprised to know that this is a fantastic time to buy a house via a Shared Ownership & Shared Equity scheme. Even if you have bad credit. You can get a great mortgage deal with the following lenders……
Let’s look at a few high street lenders and an adverse (bad credit) lender that have shared ownership mortgage and shared equity mortgage deals available in today’s market.
Abbey are very selective in which developers they have on there approved panel. There rates and fees are similar to the two below, but if your developer is not on the panel then you have no option but to try another lender.
Nationwide accept every developer. They also allow brokers to reserve the rates immediately. Now that may not sound like a big deal but in todays fast pace ever changing mortgage market that is crucial. There tracker rates for shared ownership and shared equity mortgages are competitive, if you are prepared to take a risk on an ever fluctuating Bank of England base rate.
Halifax this is the lender that likes to say yes, they have some of the most competitive mortgage products available. Each application is assessed on an individual basis, this formed around property type and location, employment and ongoing commitments and credit history.
You still need to put a minimum 10% deposit down dependent on credit score for shared ownership purchases. For shared equity mortgages you can secure a 100% mortgage for your share.
100% Bad credit mortgage
lender but ONLY for Shared Ownership purchases. Yes there is still one out there but no widely know to the public. They assess each and every case based on its individual merits. It’s based around affordability and your ability to pay the mortgage. The main criteria is base upon your ability to maintain the loan, if your gross income is over £25,000 50% of your net monthly income is calculated towards your monthly mortgage payment and rental commitment reducing to 45% for income that are less than £25,000. This Shared Ownership mortgage product is a LIBOR rated tracker product. Currently you must not have any more than three de-merits (County Court Judgments, Defaults, and Late payments)
It clearly going to be very difficult for some people to save for a deposit when times are hard and saving seems impossible.
100% mortgages for properties for sale on the open market are the last thing on lenders minds whilst the money markets are still contracting. Maybe a Shared Ownership property purchased through a housing association or a new build shared equity house is for you.
