Debt Management Plan/Shared Equity

Posted on 8 March 2011 by santina petrucci


I am in a debt management plan and have a chance of a shared equity property through my Housing Association. Could I apply for a mortgage and would I need a deposit?.

Santini,

You will need a deposit of at least 5% of the equity you are buying. However I do not think the Lenders offering mortgages at this level will consider you because of your debt management plan.

Depending on your credit record it may not be possible to arrange a mortgage or it may be that a deposit of around 50% is required.  I recommend that you get a copy of your Credit Record and speak to a local independent mortgage adviser to see if any options exist.

Peter

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