Shared Ownership Mortgage with Bad Credit
Shared ownership could make buying a property more achievable, but what if your credit history is less than perfect? Missed payments or other credit issues may limit your options without necessarily ruling them out.
We help you understand whether a shared ownership mortgage with bad credit could be available, considering both your credit record and the full cost of your new property.
- Free initial consultation
- Advice tailored to your credit history
- A clear look at your mortgage, rent and monthly budget
Understand Both Sets of Requirements
Shared ownership involves the provider’s eligibility requirements as well as the mortgage lender’s criteria. We help you distinguish them, reviewing your credit history, income and deposit alongside the mortgage, rent and service charges.
Our advisers compare suitable options from a range of lenders and explain what the recommendation means for your monthly budget. We help prepare your application, or explain what to address first if you need more time before applying.
A Few More Things to Consider
Explore the details that matter to your decision. If you would like to discuss your own circumstances, our advisers are here to help.
What Costs Are Included in Affordability?
Affordability includes your mortgage payments, rent, service charges and other regular commitments. Rent and charges can also increase over time.
We help you consider these costs together, so you understand what owning your share would mean for your monthly budget.
How Does Shared Ownership Work?
Shared ownership lets you purchase part of a property and pay rent to the provider on the remaining share. You will usually also pay service charges.
Your deposit is normally based on the share you buy, rather than the property’s full value. This can reduce the upfront amount needed, although credit issues may mean a lender requires a larger deposit.
You may be able to buy further shares later through a process called staircasing, subject to the scheme’s terms and your finances.
Does a Smaller Mortgage Make Approval Easier?
Borrowing less does not automatically make approval easier. Lenders assess the type, timing and severity of your credit issues alongside your current financial position.
Missed payments, defaults, CCJs or previous insolvency can affect which lenders may consider you and the terms they offer. There is no single waiting period or deposit amount that guarantees acceptance.
Could Shared Ownership Be Your Next Step?
Whether you have found a property or are exploring the scheme, speak to our team about shared ownership with bad credit. Start with a conversation about your circumstances and find out what to prepare next.
Your property may be repossessed if you do not keep up repayments on your mortgage.
01733 331 603
01223 987422