Getting a Shared Ownership mortgage
Buying a property is a big decision, so it is vitally important that you do your homework. As a first-time buyer you will probably need a mortgage which is likely to be one of the largest financial commitments that you make in your life.
Lenders mortgage rates change frequently so it is important to start preparing well in advance. Firstly, check your credit score. Most lenders will undertake a credit score, it is important that this is sufficiently high for banks or building societies to lend to you. Your credit score can impact the lending available to you and the interest rate. If there is an issue, you have time to take action to resolve it. Checkmyfile is the UK’s only Multi Agency Credit Report which shows full credit report data from Experian, Equifax, TransUnion and Crediva all in one place. They offer a free 30day trial, then £14.99 per month – cancel online anytime.
Secondly you need to collect documents and save them in pdf in a folder, so you are prepared. If you want to secure a mortgage, lenders will need to see evidence of your income to check regular overtime and bonuses, they will review your bank statements to help establish your lifestyle and to check your outgoings such as credit/store cards and loans including buy now pay later arrangements are accurate. Generally, a lender will need to see three months’ payslips, six months’ bank statements, proof of residency, company accounts for those who are self-employed and own a business and copies of your passport so make sure you have them handy. Set aside some time to look at all your monthly outgoings – including a realistic amount per month that you can live comfortably on. If you can, try putting together a simple spreadsheet which includes all your bills, spending, debt repayments, income sources and of course your spending on leisure activities! For a full list of the documents, you will need visit: Preparing For A Mortgage – Censeo Financial.
Many lenders offer mortgages up to 95% of the share, so you may only need a 5% deposit, but this could still be several thousands of pounds. Much will then depend on two key factors – your employment status and your credit score. Having a regular income and being in full-time employment is the ideal but many lenders recognise that thousands of people are self-employed so whilst it is harder to get a mortgage and you may not secure the best rates, it certainly isn’t impossible. Although 5% deposit will secure you a mortgage with some lenders, if you have a larger deposit 10% or more you will usually get a better interest rate with the lender.
When you are prepared and ready to look at property, speak to a specialist shared ownership mortgage broker like Censeo who can let you know what you can afford and roughly what your monthly outgoings will be.
Armed with this knowledge, you will then be able to do the exciting part – look at L&Q’s shared ownership homes.
Once you’ve found a property, a more detailed affordability assessment is undertaken. Just go online and visit Censeo’s easy-to-use online portal. The assessment will assess your ability to afford and sustain the mortgage, rent and service charge alongside existing financial commitments in line with the affordable homes criteria and lenders underwriting requirements. Alternatively call one of our friendly and helpful team on 0207 090 7290 who will assist you.
Once offered the property, you’ll have 28 days to gain a mortgage offer. The best way is through a specialist mortgage broker who specialise in shared ownership and affordable home ownership properties like Censeo, as you need sound financial advice from a company who knows the product. Having access to all lenders, their experience saves you time and possibly money as they know the lenders criteria. The process of securing a mortgage is in two stages, first an agreement in principle and then the full mortgage application. While and after the mortgage is issued, many make the mistake of buying furniture for their home, this is natural but taking out loans or maximising credit cards can invalidate mortgage offers so be careful. Finally, when buying a home, you need to protect you and your home with insurance.
Censeo Financial are an award-winning mortgage broker specialising in shared ownership and affordable home ownership. Having been trading for over 16 years, we work with many Housing Associations, Councils and Developers and have helped thousands of first-time buyers get onto the property ladder. We have access to all lenders who offer shared ownership mortgages and often get exclusive deals that you wouldn’t get from going to a lender direct. We understand the importance of providing a friendly and helpful service and have achieved 98% 5 star google reviews in the last 12 months – we strive to offer the best service possible and to find our customers the best mortgage for their personal needs saving time and money.
