Vivid Homes is one of the UK’s leading housing associations, covering the South and South-East of England. They bring affordable housing to Hampshire, Surrey and Berkshire through social rented housing, affordable housing, and shared ownership homes. Vivid Homes properties are often a popular choice for first time buyers, buyers on low incomes, and buyers looking for specially adapted homes.
How to buy a home with Vivid Homes
Vivid Homes properties are offered through a shared ownership scheme which allows the buyer to buy a share of the property and pay rent on the remaining portion. It’s a great way for buyers who are struggling to save up a big enough deposit to get on the property ladder.
Unlike with a traditional house purchase, you only need to put down a deposit for the share you’re actually buying – rather than the whole value – and that can sometimes be as low as 5%. This is how the process usually looks:
Step 1. Browse available homes on the Vivid Homes website
This is your chance to do some house hunting and find a home you love.
Step 2. Check your eligibility
Before putting in your application, you’ll need to check you meet the eligibility criteria. This involves the following:
Your household income
Whether you’re a first-time buyer or a previous homeowner
Whether you meet the local connection or residency requirements (if any)
Local connection requirements are a way for authorities to ensure that local buyers who are in need a place to live are prioritised over those who are moving to the area.
Step 3. Financial assessment
Like with a traditional house purchase, your finances will be taken into consideration. Vivid Homes will assess your mortgage affordability, whether you can afford the rent on the remaining share, and whether you can afford services charges and other fees.
Step 4. Reserve a property
Once your application has been accepted, you can reserve your chosen home. There may be a fee to pay here.
How to get a mortgage for a Vivid Home: step-by-step
When securing a mortgage for a Vivid Homes property, you’ll need to go through a few extra steps for the shared ownership part of the process. At The Mortgage Hut, we help hundreds of buyers secure shared ownership mortgages. Here’s how we guide you through every step:
Looking at your finances
The first thing we’ll do is figure out how much you can borrow based on your income, outgoings, and existing financial commitments or debts. We’ll then calculate how much you’ll need to put down as a deposit, before doing a credit check to make sure your credit score is all in good shape.
Finding the right lender
Not all mortgage lenders accept shared ownership or housing association properties. We’ll research the market to find lenders that do, comparing mortgage rates and terms to make sure we find you the right deal.
Preparing your application
There can be a lot to think about here, so we’ll help you make sure you’ve got all the documentation you need before submitting a complete and accurate mortgage application.
Keeping on top of your application
Our job is not finished yet! We’ll liaise with the lender, chasing for updates and keeping you up to date throughout.
Review and completion
We’ll review your mortgage offer with you to make sure you’re happy before confirming funds and checking everything is ready to go.
Tips for buying your first home with Vivid Homes
If you’re a first-time buyer looking at a Vivid Home property and shared ownership scheme to help you get on the property ladder, here are a few of our top tips.
Check eligibility carefully before applying. This will save you time and delays in the long run.
Keep track of your deposit and other upfront costs. There’s more to buying a home than the deposit, so make sure you’re prepared to front all the associated costs to avoid any unwelcome surprises.
Think about the future. Ask your broker about staircasing options to help you own more of the property later down the line. It might not be a priority for you now, but it’s always good to know your options.
The Mortgage Hut can help you buy your Vivid Home
Buying a Vivid Home property is straightforward with the right guidance. Our friendly and experienced advisors can help you find the right mortgage, plan your budget, and help you on your way to home ownership. Contact us to get started.
FAQs
Can I buy more shares in my Vivid Home property?
Yes, this is possible and it’s called staircasing. You’ll need to check any conditions around staircasing in your lease.
Can I use a gifted deposit for Vivid Homes shared ownership?
Yes, this is also possible. It’ll be subject to approval from both Vivid and also the lender, but The Mortgage Hut can help you liaise here.
Is it difficult to get a mortgage with shared ownership?
No, in fact, shared ownership often makes home ownership and mortgages more accessible than a traditional mortgage because you buy a smaller share which requires a smaller deposit. You’ll still need to meet the same criteria, such as a good credit score and stable income, but this does open the door for those on lower incomes.
