Can You Get a Shared Ownership Mortgage With Bad Credit?

Here’s the thing. A poor credit score doesn’t have to mean closed doors when it comes to getting on the property ladder. You just need to have the right advice and seek assistance from a specialist lender.

You can get a shared ownership mortgage with bad credit. But you may have limited options. If your score is very poor, you may struggle to get a loan. But your score doesn’t completely define your chances. Neither does it hinder your chances indefinitely.

For starters, defaults will only show for up to six years. Any adverse-credit factors that are older than six years won’t be included in your report.

There are also other factors that a lender will look at.

What can I do to boost my chances of securing a mortgage?

The important action is to know your credit score, understand the problem areas and get advice from a specialist mortgage broker.

Specialist lenders may be more likely to consider you than a regular lender. This is because they work with more flexible lending criteria. You may need to pay a higher interest rate, put down a bigger deposit or get a guarantor.

Is shared ownership a good mortgage option if I have poor credit?

Shared ownership is specifically designed for first-time buyers who can’t afford to put a mortgage on the full value of the property. Instead, you can rent a portion. This lowers the value of the property from a mortgage point of view, helping to make it more affordable.

As with any mortgage, there are specific lending criteria. Your combined household should earn less than £80,000 a year (£90,000 in London).

Got a question?

Speak to the team at Agentis today. We’re adverse credit mortgage specialists who can help with a wide range of mortgage products. Contact us to arrange your free initial consultation today.