Affordability
Before you buy a Shared Ownership home with us, we’ll make sure that you can comfortably afford the ongoing costs of living there.
Government guidelines say that the total cost of your combined monthly mortgage, rent and service charge fees should be no more than around 45% of your household income after tax. But we know everyone’s financial circumstances are different, depending on your household income, financial commitments, deposit size, and the value of the home you wish to buy.
You’ll be asked to complete a financial assessment with an Independent Mortgage Adviser (IMA). They’ll look at your circumstances and finances, and help you decide whether Shared Ownership is affordable for you and if you meet the affordability conditions.
They’ll review:
- your income and savings
- your credit history
- existing loans or commitments
- any dependants
- your rent or mortgage payment history
Government guidance also requires:
- a good credit history
- the ability to sustain your ongoing payments
Even if you already have a mortgage in principle (MIP), you’ll need to meet the Shared Ownership eligibility criteria before you can proceed.