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It is not easy to purchase property in the UK, especially if you have a bad credit history or have filed for bankruptcy in the past. Lenders are reluctant to provide loans to such consumers because such cases involve high risk for them.

Because most people usually suffer from debts or bad credit history, the government realised this problem of the people and came up with various schemes to provide them with ease. One of those schemes is the Shared Ownership.

In the Shared Ownership, people with bad credit standing can make a nominal amount of deposit or those who cannot take out a very big mortgage loan up to one property can have mortgage loan up to one share. 

This share is commonly up to one quarter, one half or three quarters. The remaining share is owned by the government housing institutions. The consumer who takes out the loan then pays rent of the shares which he or she does not own to the government housing institutions.

Moreover, if you started by owning 25% share in the property and later on your financial conditions becomes better then you can increase your share to up to 50%, 70% or even up to 100% means can become the sole owner of the property. 

The more share in the property you will acquire, the lesser rental payments you will have to make to the government housing institutions.

The above-mentioned scheme is available for people in the UK who are purchasing property first time in their lives, who owned property before, do not own one right now or cannot presently afford to purchase right away, have already availed the government scheme of shared ownership and want to avail another or people who have salaries lesser than £80,000 per year. ‘

For people who have a bad credit rating, it may be a little difficult for them to qualify for the shared ownership scheme. It is just that lenders feel very shaky when they are making deals with people who had debts in the previous times, filed for bankruptcy or have adverse credit standing. 

They fear if that consumer will be able to make timely repayments. However, this should not discourage people with adverse credit history to give up on applying for a shared ownership mortgage. 

What will happen is that the lender may ask you to make a higher amount of deposit to up to 15% of the total amount of loan or ask you to make payments at a higher interest rate.

Now all you need to worry about is to prove the lender or the government institution who is offering shared ownership scheme that you can afford the mortgage payments and what happened in the past with your credit standing will not happen again in the future. 

Before you apply for any mortgage loan, it is better to get a clear picture of your credit score. You should keep an updated copy of your credit report which you can show to the lender. This report can be obtained by credit reference providing agencies which are Call Credit, Experian, Equifax and many others.

You can also take assistance from mortgage brokers who can guide you regarding your bad credit and how you can avail shared ownership. 

They will help in making your credit standing better and how you should approach the lender who will provide you with easy policies on the mortgage loans. 

In lieu of providing expert advice, they will charge you nominal fees, which should not be a problem for you to pay.