Shared Ownership Mortgage

Shared Ownership Mortgage: £92,000 Secured After an Affordability Appeal

Our client, a first-time buyer, had found a shared ownership house in the West Midlands that suited them perfectly, and their family were determined to help them secure it. Affordability was tight, and tight affordability is the usual route to a mortgage declined on affordability. This case ended differently.

We cut the term from 40 years to 24, appealed income the lender hadn’t been using, and worked with the lender’s senior underwriter to secure the mortgage.

The scenario

Our client came to us as a first-time buyer, with their family supporting the purchase. The property was priced at £320,000, with the client buying a 60% shared ownership share, helped by a £100,000 gifted deposit. The family wanted to see the client settled in a secure home, and from the first enquiry they were clear that this was the property they wanted.

Affordability was tight, and to keep the payments manageable the term initially needed to run for 40 years.

The challenges

1. Tight Affordability

   The income available left little room. A 40-year term would have meant paying interest for far longer than anyone wanted.

2. Income the Lender Wasn’t Counting

   At first, the lender wasn’t using some of the client’s income, which held back what they were prepared to lend.

3. Bespoke Documentation Requests

   The lender asked for some very bespoke documents before it was comfortable to proceed, which added time and effort to the case.

4. Keeping the Family on Board

   The case took longer than most. At one point the family were frustrated and didn’t think they would be able to continue with the lender and the property.

The solution

We started by challenging the income. Some of it wasn’t being used by the lender, so we appealed this and maximised the income counted. That is what allowed us to bring the term down from 40 years to 24, which also reduced the total interest payable.

When the documentation requests stretched on, we didn’t let the case stall. Over many phone calls with the lender’s senior underwriter, and with the underwriter speaking directly to the client and their family, we got comfortable terms agreed. That conversation turned a case that could have been declined by the underwriter into an agreed mortgage, with all of the client’s income counted.

Throughout, we spoke regularly to the family and made sure the client knew what was happening at every step. Once the offer was issued, we liaised with the solicitors to complete as soon as we could.

The outcome

The mortgage was agreed and the loan completed. Our client has now moved into their home.

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