Qualifying Criteria
Applicants must:
- Be aged 18 years or over
- Be registered for affordable home ownership with either the relevant Local Authority or HomeBuy Agent
- Have access to sufficient funds to cover legal costs, Stamp Duty Land Tax (if applicable) and any other moving costs.
- Be able to obtain a mortgage or have sufficient capital to purchase without borrowing.
- Be able to afford homeownership. Please refer to the section “Assessing Affordability” for further details.
You will not qualify if:
- You have existing debts of more than £15,000 (excluding student loans or mortgages).
- You have any unsatisfied County Court Judgements (CCJs). The Association will carry out a CCJ check on all applications.
- You have rent arrears or a poor rent record.
- Your annual income is in excess of £60,000 per annum.
- If the Association consider that you can afford to buy a suitable property on the open market.
Important Note: Existing homeowners that meet the qualifying criteria may apply for Newbuild HomeBuy if you are unable to remain in the home that you own. If you are offered a shared ownership home, by the time you exchange contracts on the property, you are not permitted to have a financial interest in any other property in the UK or elsewhere. Please ask a member of the shared ownership team if you require clarification of this point.
Please Note: Some schemes may have additional qualifying criteria i.e. local connection
Assessing Affordability
Many factors are considered when assessing whether or not Newbuild HomeBuy is an affordable option for you.
The Association may not approve applications where the mortgage required to purchase the share exceeds 3.5 times of the households income. Some lenders may be happy to offer you a mortgage of 4 or more times your income, but the Association do not consider that this is sustainable in the long term.
We look at your current income and the anticipated costs of living in the home that you have applied for, including any existing credit agreements/commitments that you may have. If your income is equal to or less than the anticipated living costs then your application will not be approved.
Allocation
Only qualifying applications that have been approved by the Association will be considered for allocation. When allocating Newbuild Homebuy, priority is given to*:
- Existing Local Authority or Housing Association tenants.
- Applicants defined as Homeless by the Local Authority and other Local Authority Waiting List Applicants (where applicable).
- Keyworkers.
- Other first time buyers.
The relevant HomeBuy Agent will prioritise your application before your details are sent to Signpost Housing Association.
Housing need will be considered within these groups i.e. an applicant with a child(ren) will be given priority for a 2 bedroom home over a single person.
Where applications have equal priority, the household with the lowest income will be offered the home.
*Some schemes may have additional prioritisation criteria i.e. local connection.
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