a shared ownership home with a green overlay and a percentage icon, representing the ability to buy a percentage share of a home.

Shared ownership guidelines

All you need to know about our shared ownership guidelines

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Cash buyer guidelines

  • We will check the credit history of all cash buyers and their partners/spouses in line with our Adverse Policy. Any negative credit history will be considered.
  • You cannot be a cash buyer just because you can’t get a mortgage due to bad credit from a regular lender.
  • If you’re buying with cash because of your age, we’ll also look at how your income might change soon if you’re still working.
  • All cash buyers need to fill out a budget planner. This should include realistic expenses for your household, supported by bank statements if needed.
  • Your income must be stable and sustainable.
  • Your expenses should be realistic. We might use data from the Office for National Statistics (ONS) to check this.

Adverse credit guidelines

  • No unpaid County Court Judgments (CCJs) or defaults in the last two years, unless they are communication defaults.
  • No CCJs or defaults over £300 in the last 2 years, whether paid or unpaid.
  • No unpaid CCJs or defaults over £1000, regardless of when they were registered.
  • Acceptable if discharged three years ago, or if registered over six years ago and settled, with no further issues.
  • No missed mortgage payments in the last 12 months.
  • Acceptable if it happened over three years ago, with no outstanding debt to the lender and no other credit issues in the last three years. A letter from the lender confirming no outstanding debt is required.

Assessment and affordability guidelines

How we allocate homes:

We allocate homes on a first come, first served basis.

When you apply, we check if your household income is less than £80,000 and if you can’t buy a suitable home on the open market.

Affordability checks:

We have a team of advisors who will assess if you can afford the home, whether you’re buying with cash or a mortgage.

If you qualify, we refer you to a third party (Mortgage Advice Bureau/Metro Finance) for an initial affordability qualification.

Your financial assessment is free and done by a suitably qualified and experienced advisor that is regulated to give mortgage advice. You are not obligated, however, to arrange a mortgage with the advisor undertaking your financial assessment.

Multiple applications:

If multiple people apply for the same home, we prioritize based on who obtains the first full financial sign off from the mortgage advisor.

Detailed affordability check:

This includes a thorough review of your income, expenses, and any future changes that might affect your finances.

This more detailed assessment will involve a budget planner.

Local connection:

If the property requires a local connection, priority is given to those who meet this requirement as detailed by the Section 106 agreement.

Credit policy:

You must meet the conditions within our adverse credit policy, currently in place with Mortgage Advice Bureau and Metro Finance, subject to exceptional circumstances which will be reviewed on a case-by-case basis.

For cash purchases, the same principles apply. Our cash buyer guidelines can be found separately.

Surplus income policy:

After assessing your income and expenses, you should have at least 10% of your net income left over each month. This is set out in our surplus monthly income policy

This ensures you can handle unexpected costs.

Realistic spending:

Your spending should be realistic for your household. You’ll need to provide bank statements and explanations.

Mortgage compliance:

The final decision on affordability is made by a third-party broker. This falls in line with mortgage compliance affordability by our providers. Our advisors will be unable to suggest a share that does not fall within these parameters, as this would not be deemed affordable or sustainable.

Budget planner steps

Step 1 – gross household income (A)

Step 2 – deductions from gross income (B)

Step 3 – known commitments (C)

Step 4 – housing costs (excluding mortgage) (D)

Step 5 – net income remaining for mortgage purposes (E = A – B – C – D)

Step 6 – mortgage cost (F = no greater than 30% of E)

Step 7 – other essential expenditure (G)

Step 8 – provider’s minimum surplus income policy (E – F – G must be greater than this)

Find out more

Final sign-off

The advisor will provide a sign-off sheet with the assessment details, advice on the share to be purchased, and the outcome of the affordability assessment.

This sheet must be signed by the advisor, you, and whg.