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Shared Ownership Mortgages Bad Credit

How does bad credit affect a Shared Ownership mortgages application? Get the right advice here.

No impact on credit score

Pete Mugleston

Author: Pete Mugleston - Mortgage Advisor, MD

Updated: August 12, 2021

We get regular enquiries from people who want to know how they can get a Shared Ownership mortgage with bad credit. Many have been declined a mortgage or have a bad credit history.

The good news is that the advisors we work with are experts when it comes to bad credit and, being whole of market, they have a good working relationship with lenders who provide subprime Shared Ownership mortgages, even for applicants with severe adverse credit marked against their record.

If you would like advice on getting a Shared Ownership mortgage with bad credit, contact one of our team.

Can you get a Shared Ownership mortgage with bad credit?

We have helped hundreds of borrowers who previously believed that they couldn’t get a Shared Ownership mortgage because they have “bad credit.”

The specialist shared ownership brokers working with us have access to lenders and rates across the UK and have been able to arrange mortgages for people with all sorts of credit issues.

Most lenders will look at how long ago the incident took place, how severe it was and what the final outcome was. The longer ago it was, the more likely lenders will be to look at your application in a more positive light.

Fortunately, the advisors we work with are experts when it comes to finding the best mortgage deal for people with bad credit. Make an enquiry to speak with an advisor.

Why is it harder to find a lender for a Shared Ownership mortgage with adverse credit?

If you have adverse credit on your credit report, this can suggest to a lender that you have mismanaged your finances in the past. This creates an uncertainty that you will pay your mortgage payments and so some lenders will reject applicants with bad credit without looking at other factors to avoid the risk completely.

Most brokers don’t understand how to navigate the market when it comes to finding a lender for a “bad credit” mortgage, especially one for a Shared Ownership property. That’s why it’s important to seek advice from a broker who has experience and specific knowledge about how to find you the best mortgage deal.

Are there lenders who will offer subprime Shared Ownership mortgages?

In the right circumstances there may be a specialist lender who will consider offering a subprime Shared Ownership mortgage as more and more, (including some high street lenders), are beginning to accept “bad credit” borrowers.

The problem is, every lender has their own set of criteria that they use to determine whether they’ll approve or reject you. This isn’t helpful if you already have “bad credit” on your record as a rejection for credit can have a negative impact on your report.

That’s why it’s helpful to use one of the mortgage brokers we work with: they are experts when it comes to helping people with bad credit find a mortgage because they’ll already know a good selection of lenders who are more likely to approve your application.

As well as this, a broker with experience can help you avoid paying more than you should in interest and fees.

To find a Shared Ownership mortgage lender, talk to one of the advisors we work with.

Can I get a 100% Shared Ownership mortgage with bad credit?

It will certainly prove more difficult.

Usually Shared Ownership mortgages require a 5% deposit (although it is possible to get one with no deposit at all) but sometimes the amount of deposit you’re asked for can me more if you have “bad credit.”

This is because putting down a larger deposit would mean that you borrow less and would also mean that you own more equity in the property shares as opposed to having a loan for them, which the lender considers a lower risk.

To understand how much deposit you’ll need with any given lender, a mortgage advisor will need to look at your circumstances in depth as well as compare lenders. They can then give you an estimation for your deposit size as well as any funds you may need for fees.

Contact a specialist to calculate your deposit for a Shared Ownership mortgage.

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How an expert can help you find the best bad credit Shared Ownership mortgage lenders

  • We are a free service, matching people with expert brokers for Shared Ownership mortgages with a bad credit rating
  • We have helped over 45,000 people find a mortgage, even in instances where they have been declined by a lender
  • We work with whole of market specialists  who are in the best position to find the best mortgage for you
  • The experts we work with can offer bespoke advice on both Shared Ownership and bad credit
  • They know exactly which lenders to approach for Shared Ownership and bad credit, and have deep working relationships with them
  • Make an enquiry and we’ll connect you to the right broker

Contact an expert in shared ownership mortgages with bad credit

If you have questions about “bad credit Shared Ownership mortgages” call Online Mortgage Advisor today on 0808 189 2301 or make an enquiry.

Then sit back and let us do all the hard work in finding the broker with the right expertise for your circumstances. We don’t charge a fee and there’s absolutely no obligation or marks on your credit rating.

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About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

Read more about Pete

Pete Mugleston

Mortgage Advisor, MD

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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