They will together with look at your credit history
Clarion
Shared possession is a superb way about the possessions ladder. You purchase an initial display from a home anywhere between twenty-five% to 75% of the worthy of and also have the substitute for very own your home outright regarding the future.
To acquire as a result of mutual possession mode you would like a smaller sized financial and you can, hence, an inferior deposit than if you were to shop for on open market.
And your own home loan, you pay a beneficial subsidised book toward show of your property you do not individual. So it book is oftentimes capped at the 2.75% of the house value.
And you may, anytime, you can purchase larger offers of your house if you do not individual 100% it is also known as staircasing.
How common possession really works
If you buy a property downright to have ?eight hundred,100, you would like the very least 5% put off ?20,000. The remaining 95% would-be the mortgage ?380,100000.
If you purchase a twenty five% express by way of mutual ownership, the brand new total price is ?100,one hundred thousand instead of ?eight hundred,one hundred thousand. Thus, you need a good 5% put regarding ?5,100000 and you can a home loan out-of ?95,000.
Eligibility to have shared possession
Common possession is made to assist those who can not afford in order to get on open-market, so might there be specific qualification standards:

need certainly to secure lower than ?80,100000 annually (?ninety,100000 inside London)
you really must be 18 or earlier
you cannot be a citizen
you simply can’t are able to afford purchasing a house outright. […]