The Financial Assessment and Mortgage Advisors
The Financial Assessment
The final check we need to make is to ensure that you can afford a Shared Ownership property, you are not over stretching yourself financially and that you are able to qualify for a mortgage. To do this, we ask that you arrange a meeting with a Mortgage Advisor who will carry out a financial assessment.
Depending on the scheme and the amount of interest we receive or expect, the timing for your financial assessment can vary. Normally and ideally, we will ask you to complete one before you view any homes you are interested in. This is so we can ensure that you are able to afford it without over stretching yourself and doing the assessment early on in the process will save time later.
However, the financial assessment may take place at the actual viewing or occasionally even later in the process, after you have reserved a property. You will need to have undertaken this and we must have the report before we can allocate and offer you a property.
Watch our video on the 10 steps to purchasing a Shared Ownership property
The Mortgage Advisor will:
- Check the information on your application form is correct and decide if you can afford to buy.
- Agree the percentage share that you can purchase based on income, savings and outstanding credit commitments you declare (please note: this is based on government guidelines and not necessarily what a lender would be willing to lend).
- Give you information about choosing a solicitor and information about choosing the right mortgage for you.
So that we can help you to buy your new home as quickly as possible, you must provide the following to the Mortgage Advisor:
- Your latest three months payslips (please bring three months’ worth of payslips even if you are paid weekly) or if you are self employed, your audited accounts for at least the last two years from a certified or chartered accountant or at least the last two years tax assessments from HMRC.
- Your passport.
- Latest three months bank statements (for all applicants).
- A photocopy of your marriage certificate, if applicable.
- Details of previous surnames, if applicable.
- Evidence of any benefits you receive i.e. child benefit.
- Evidence of your rent payment history, if applicable.
- Proof of residency for all addresses you have lived at for the past three years. This can be in the form of utility bills or council tax documentation or bank statements.
- If you have any credit cards, hire purchase or personal loans then please bring along the original agreements and the latest statements.
- Proof of savings.
- A signed letter from a family member confirming any gifted deposit.
- A cheque book in case it is needed to pay for a mortgage valuation or arrangement fee.
- A copy of your credit reference report; available through Experian, Equifax or a similar credit reference agency.
All of the above will be required by a mortgage provider and will be thoroughly assessed by the lender’s underwriters.
If you are going to live in your home with anyone other than your children, you must all complete the financial assessment and provide this information.
If you do not complete the assessment you could lose your reservation fee and the home you want may be offered to someone else. If you do not provide the information listed, the assessment will not be able to go ahead.
When it comes to arranging a Shared Ownership Mortgage
The Mortgage Advisor is able to look at the majority of the mortgage market and will be able to help you arrange a mortgage – if you want them to. They will help you fill in the mortgage application form, submit the application and handle the processing of the application for you – saving you valuable time and ensuring the right type of mortgage is obtained. If you want to arrange your own mortgage, you should talk to banks and building societies and make sure that you advise them that you are buying a Shared Ownership property and the share you are buying.
You will need to make mortgage decisions fairly quickly as lenders take at least 21 days to issue a mortgage offer and by this stage in the process you will be expected to have a mortgage granted within four to five weeks. The maximum share you can buy will be confirmed by the Mortgage Advisor during the financial assessment. This is the maximum share we will allow as we must follow the HCA affordability assessment guidelines and we cannot be guided by what a lender may lend. You must also act quickly to arrange your mortgage as you are required to exchange contracts within four weeks of the contracts being issued by our solicitors (approximately six weeks from your reservation).
Please find below the Family Mosaic panel of Mortgage Advisors.