Q: Will I need a deposit to get a mortgage?
A: In the current economic climate, if you can fund a deposit towards your mortgage you are more likely to obtain a mortgage offer and a more attractive interest rate. Some 100% mortgages are available to people with good credit histories but generally you should aim for at least a 10% deposit. The amount that this equates to is based on the value of the share you are buying, for example a 10% deposit on a 25% share of a property valued at £150,000 is £3,750, not £15,000.
Q: I am unsure whether to buy now or wait until the credit crunch is over. What should I do?
A:This decision is your own, not ours. It is an important decision and you should consider all the factors carefully, including your housing need. You should also obtain independent financial advice and appoint a solicitor to advise you over your purchase.
Please read our information sheets entitled:
• Mortgage availability
• Current housing market conditions
Q: I am self-employed, can I still apply?
A: If you have kept accounts for more than three years, your application can usually be treated in the same way to that of someone who is employed by a company. If you have not kept accounts or have been self-employed for less than three years, we will ask you to seek financial advice prior to accepting your application.
Q: I am concerned that my credit history may affect my application. What should I do?
A: In the current economic climate, lenders are more likely to approve mortgages to people with “clean” credit histories. If you are unsure of your own credit history you can access a copy of your credit file from www.experian.co.uk. A fee is payable but this could save you time and money in the long run.
We may be able to help you if:
- You have at any time been declared bankrupt;
- You have, or have had, County Court Judgements (CCJs) or loans defaults served against you;
- Your home has been repossessed in the past six years.
In these cases, it may be difficult or impossible for you to obtain a mortgage. We will ask you to seek financial advice prior to accepting your application.
Q: Do I have to be a key worker to be eligible?
A: You do not need to be a key worker to be eligible. All first time buyers and those with properties no longer suitable for their housing situation may apply, regardless of job role. Some properties or funding are available exclusively for key workers. If you are a key worker, you may apply jointly with someone who is not a key worker and your application will be considered for key worker schemes.
Q: What happens in areas where there are more applications than available housing?
A: If you apply for a property or funding where more than one person is interested, the housing association will assess applicants according to their housing need and affordability. In some cases, certain groups of people, eg, housing association tenants and council tenants, or key workers, may be prioritised.
Q: I have read the criteria and do not think I am eligible. What should I do?
A: Call us on 0845 359 6161 and we will be happy to discuss this with you. Some people who do not qualify for affordable home ownership may qualify for Intermediate Rent or Rent to HomeBuy. Alternatively, you may wish to look at options to rent privately, or you may wish to contact your local authority to get on their housing register or to discuss their Choice Based Lettings’ options.
Your home is at risk if you do not keep up rent and mortgage repayments or payments on other loans secured on it. Please note the value of properties can go down as well as up.
If you have any questions regarding your eligibility for the HomeBuy Scheme, you may contact us directly.