Buying Process
As a guide we have outlined the buying process for a typical shared ownership mortgage.
Your home may be repossessed if you do not keep up repayments on your mortgage
Get your credit report
It is always a good idea to obtain a copy of your credit report upfront, as it is important to ensure that all information held has been correctly recorded and will not impact on your ability to purchase. We recommend obtaining your multi-agency report here.* Which is offered on a 30 day free trail, then at a monthly cost of £14.99. This can be cancelled online at any time. * Please be aware that by clicking on to the above links you are leaving SO-Mortgages website. Please note that SO-Mortgages nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page. Your home may be repossessed if you do not keep up repayments on your mortgage. We may receive commission or any other fee if you choose to register to www.Checkmyfile.com
Register with us
You will then need to register with us, providing details such as your income and expenditure.
We will contact you
We will be in contact within 48 working hours, where we will discuss what would be affordable for you and the give you an idea of what your monthly payments would be.
We will liaise with the housing association to confirm your eligibility, who will then be in contact with you to discuss the property in detail and arrange a viewing.
Send us your documents
Should you wish to proceed with a purchase, we will request the following documents:
- Proof of ID (driving licence or passport)
- 2 forms of address verification, such as utility bill dated within the last 3 months, annual council tax bill or driving licence if not used for ID
- Latest 3 months bank statements (they must be for all accounts held)
- Latest 3 months payslip & P60/ 3 years SA302’s and Tax Overviews
- Proof of deposit (where it is coming from your savings, we will need supporting statements demonstrating a build-up of funds. Where it is being gifted, we will need a letter from the gifter confirming that it is a gift, that it is non repayable and they will hold no interest in the property. In every instance, we will require proof of ID and supporting statements, demonstrating a build up of funds from the gifter)
- An up-to-date copy of your credit report.
*Please note, photographs/screenshots are not acceptable, they will need to be scanned and emailed documents, or posted copies.
Finalise your assessment
Once we have received your documents, we will finalise your assessment, before approving your application to the Housing Association.
At this time, should you require assistance with arranging your mortgage, we will discuss your mortgage options and arrange for you, an agreement in principle with a lender. This is where we approach a lender, who will conduct a credit check, to ensure that in principle, they would be prepared to offer you a mortgage.
It is also at this stage, that you will need to think about which solicitor you would like to use (we can certainly make recommendations if you wish).
Please note, we charge a broker fee of £399 which is payable upon full mortgage application.
Acceptance of Agreement in Principle
Upon acceptance of your agreement in principle, we will advise you of the great news and provide you with a mortgage certificate.
You will then need to advise your housing association of the mortgage lender details, which we will happily do on your behalf. In addition, at this stage, they will also ask for confirmation of your chosen solicitor.
Our mortgage recommendation
Your Housing Association will issue a form called a Memorandum of Sale, which sets out details of your purchase. Please provide us a copy of this, as this is required before we apply for your mortgage.
We will be in contact to finalise our recommendation for your mortgage and look at your protection needs.
Applying for your mortgage
We will now be able to apply for your mortgage and is at this point that any fees indicated in your mortgage illustration becomes payable. It is also at this time that you will need to instruct your solicitor to conduct the legal work for your purchase.
Once we have applied for your mortgage, we will provide all documents requested by the lender to progress your application. Further documents may be requested by the lender, in turn, we may then need to request from you.
Valuation
A valuation will be instructed, which is whereby a surveyor will visit the property, to ensure that it is correctly priced and adequate security for lending purposes. This will be arranged directly with the Housing Association and surveyor and you will not need to be in attendance.
Once the valuation report is back and the lender is satisfied with your documents, they will produce your mortgage offer.
Mortgage offer
It is important that even after your mortgage offer is received, that there are no changes in your credit profile. This includes no further borrowing and keeping up with all your committed repayments. Any changes can result in the lender withdrawing their offer.
You will receive a copy in the post, as will your solicitor. We will receive an electronic copy, which we will send over to your Housing Association for approval.
Your solicitor will be in contact with you to discuss the next steps and any outstanding requirements they may have. They will liaise with your Housing Association’s solicitor and you, to discuss when your deposit (exchange) will be payable and when you will get the keys to your new home (completion)
Completion
Once we have a date for your completion, we will look to coincide the start of your protection alongside this.
Your mortgage lender will write to you after completion to confirm details of when your first payment will be collected, and how much this will be. This is often more than your future payments, and we would advise allowing at least 1 and a half months mortgage payments in this first month.