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Shared Ownership Mortgages with Bad Credit

Government schemes such as shared ownership aim to inspire affordable home buying for people with weaker financial conditions. It is the reason that you can apply for the project and borrow funds for the big purchase through shared ownership mortgages with bad credit. Not all the lenders in the market offer these mortgages, and you need to filter those that provide funds for this purpose. Shine Mortgages, the online broker keeps the lenders with shared ownership/co-ownership mortgage.

Preconditions to apply for shared ownership mortgages with bad credit

Before you apply for a shared or co-ownership mortgage with poor credit, you need to do the following –

  • Check credit report for any possible mistake – You already have a low credit situation, and it can become severe with a mistake mentioned in your credit report. A wrong spelling, wrong address, incorrect mention of a loan that you never took etc. are some of the common reasons to cause a further fall in the credit score. Suppose a loan that you never obtained is mentioned on your name and its showing pending it is sure to reduce the credit score. The credit reference agencies see it as your fault. While you check the report, it is possible to detect such mistakes and improve them at the right time.
  • Spending within your financial limits – A spendthrift mortgage applicant never gets in the good books of the lenders. You should not forget that you are applying for the mortgage with poor credit, and that creates many questions about your spending habits. Learn to prioritise expenses and spend money only on the required costs. The lender should get the feeling that despite the bad credit, you try to manage things in available resources and money. It means a lot to them because a mortgage applicant with genuine intentions to improve the condition always gets a good response.
  • Save big for deposit – It can be tricky for you to get the desired LTV due to the low credit score. Mortgage lenders always hesitate to take the risk for someone who is not sound in personal finances. In such conditions, it is necessary to fill the gap between property value and LTV with an amount. Deposit amount plays that role. Before you explore the best deals of the shared ownership mortgages, it is better to accumulate as much money as you can. It helps to avoid the last-minute chaos and the chances of rejection on the mortgage application.

With the above preconditions, you can expect a favourable response on the mortgage application because all the safety measures have been followed.

People usually ask – Can I get zero deposit shared ownership mortgage with bad credit?

Rationally, it depends on the lending policies of the varied lenders. Naturally, it is a bit difficult to get a zero deposit mortgage with poor credit. To find such a deal, you need to explore the mortgage market. Shine Mortgages have several options of lenders available on its panel, that consider your mortgage application with the demand of no deposit. However, they need you to be very reliable in the current repaying capacity. To overlook the past financial mistakes, the mortgage company needs to see some good reasons to rely on your financial circumstances.

What are my chances for a co-ownership mortgage with CCJ or IVA or Bankruptcy?

Usually, the poor financial conditions of the applicant are not welcomed by the lenders. However, if you manage your pending obligations even in such a difficult situation, the lender takes it seriously. Before you apply for the mortgage, it usually is advisable to wait for at least six months to one year. Most of the shared ownership mortgage lenders follow this rule as the general culture. At Shine Mortgages, we suggest you to workable options to improve your affordability as well as approval chances. Do not lose hope and contact us to get free advice about your concerns.

Credit myths that may make you lose the chance of shared ownership mortgages with poor credit

A person with a low credit rating is always insecure and thus becomes an easy prey to the prevalent myths. Many are popular in the market about the poor credit people in search of a mortgage. In the hope to improve their chances of getting a mortgage approval, they follow them and later regret.

Payday loans boost credit rating – Many people think that when they get a payday loan, their credit score improved. The loan has a high-interest rate and paying off such obligation on time leaves a good impression on their financial records. Sometimes people intentionally take the loan before applying for a mortgage. THE REALITY IS – a high-interest loan is always considered, as the weakness of the borrower. The reason is no one takes the burden of high rates and hefty instalments until there is no sever financial crisis. If someone has taken that, indeed it is due to some severe financial conditions.

Checking your report hurts your credit score – No, never. Checking a credit rating never hurts or reduces the credit report. A credit score gets affected only when you or a lender check your affordability for a loan through a hard credit check. Besides this, if you apply to many lenders for a loan and do that frequently, it spoils your credit score performance. The advisable thing is to check the score at regular intervals.

In bad credit, you need to wait for seven years to get a mortgage – It happens only in the case of CCJ, IVA or Bankruptcy. In a normal poor credit situation, you do not need to wait. Instant application for a shared ownership mortgage is possible. The vital factor is that low credit issues should not be recent. Older is the issue of the low credit rating; better are the chances of mortgage approval.

With the above myths, you only make your bad credit situation severe. Plan a faster escape from these misconceptions otherwise; you may fail to prove shared ownership eligibility with some mistake.

Can I get staircasing mortgage with bad credit?

Yes, you can always get staircasing mortgage with low credit because the primarily important thing is affordability. The mortgage market has become quite flexible now, and no borrower gets rejection on bad credit until it is some tricky situation such as severe CCJ or IVA issue.

The following factors are necessary to purchase a larger share with bad credit –

  • Payment history on the current mortgage
  • Income – outgoing ratio
  • The recency of the poor credit situation
  • If your house has earned some equity, it acts as a positive point

To find the best deals on staircasing mortgage, you can contact us with a vast choice of the lenders and repayment plans.

When you should choose us

We say more in a few words. Following are the prime features that we own as an online mortgage broker. You can consider them while choosing a broker.

  • Thousands of products
  • Years of expertise
  • Get lowest possible rate
  • Assured information privacy
  • Advance mortgage calculator
  • User-friendly website
  • Fee-free advice
  • 24x7 support

Shine Mortgages is always there to help you get the best shared ownership mortgage deals with bad credit without much hassle. You leave a query and wait for a while; we are sure to respond within 10 minutes with most suitable quotes. Once you choose any lender, rest is one us. From documentation to fund disbursement, get everything done.

Shared Ownership Mortgage With Bad Credit FAQs

Can I get a shared ownership mortgage with bad credit?

Yes, you can but only if you prove the repaying capacity against the amount you have applied for. The stable current income status can assure better chances of mortgage approval. Keep control of your expenses to show that you act responsibly in finances.

How much time does it take to get a shared ownership mortgage with poor credit?

It usually takes a minimum 18 days to maximum 40 days in a mortgage process, and with bad credit, it should not be odd for you if your case takes the maximum time. The income assessment rules are stringent, as lenders do not want to take the risk.