1.   Scope

1.1. This policy applies to all shared ownership applicants. We will ensure all prospective customers are aware of our policy approach when offering them a shared ownership home. We will ensure all prospective customers are aware of the process prior to expending any cost to themselves.

2.  Policy Statement

2.1    The demand for our shared ownership homes far outstrips the supply, it is therefore imperative that we are clear in how we allocate and offer our shared ownership homes to prospective eligible customers.

2.2    This policy sets out the minimum amount of money in percentage terms that an applicant should have at the end of each month following the assessment of all elements of their income and expenditure. No maximum amount is set as individual applicant circumstances need to be able to be accounted for.

2.3    Our surplus policy at Love Living Homes (Town & Country Housing) is based upon:

• • • The minimum Surplus requirement is set at 10%, this is based on the net income available for mortgage purposes which is derived from the below calculation:
      • Gross income
      • Less gross deductions (tax, National Insurance, student loan etc)
      • Less known commitments (loans, credit cards, childcare, etc)
      • Less housing costs of the Shared Ownership purchase (rent and service charges) (A – B – C – D) = income available to support a mortgage, other essential expenditure (identified through a budget planner) and to meet the provider’s surplus income policy.
    • No more than 30% of their net household income on housing costs including mortgage rent and Service charges.

The financial assessments will be carried out by a qualified mortgage advisor in a 2-stage process as below:

Initial Assessment: (Stage 1)

• • • Likely to be able to purchase the minimum share for new Shared Ownership homes (or the share being sold on resales)
    • Meets the relevant provider’s policies in relation to the selling of Shared Ownership homes.

This assessment will be signed off by the mortgage advisor:

Full Assessment: (Stage 2)

More detailed assessment of their income and expenditure, their circumstances and preferences including any known or likely future changes that will impact on their income and / or expenditure. This more detailed assessment will involve a budget planner.

A full assessment will be signed off by the mortgage advisors (either Mortgage or Cash buyer sign off whichever relevant)

TCH will hold a written agreement for data sharing.

3. Adverse Credit

3.1 Our adverse credit policy at Love Living Homes (Town & Country Housing) is based upon:

3.2    This is done to ensure potential customers are not inconvenienced unnecessarily with potential abortive costs.3.3    This policy only applies to shared ownership newbuild and resale policies. Right to Buy / Right to Acquire have alternative criteria and this would not apply to outright sale.4. Monitoring and Review4.1            This policy will be reviewed annually.5. Related Policies and Procedures

• Anti-Money Laundering Policy.
• Shared Ownership Policy.
• Resales Policy.
• Capital Funding Guide

Missed mortgage/rent arrears	If this has happened in the last 12 months, it won’t usually be accepted. That said, we may consider the situation through an Individual Assessment.
Unsecured arrears	We’ll carry out an Individual Assessment.
County Court Judgments or registered defaults	None in the last 36 months. Plus, they must be satisfied prior to the mortgage application. They may be acceptable in the following situations: All CCJs/defaults were registered more than three years ago and satisfied prior to mortgage application. All CCJs/defaults were satisfied more than 12 months prior to application regardless of date of registration. The CCJs/defaults in aggregate amount to less than £300, regardless of date of registration, and were satisfied prior to mortgage application.
Individual voluntary arrangement (IVA) and discharged bankrupts	IVA/bankrupts who have been discharged over three years ago and who have no residual debt may be accepted subject to Individual Assessment.
Repossessions	Not accepted.

5. Approval

Version number	V2
Effective from	5 January 2026
Policy owner	Llana Harvey, Assistant Director of Sales and Marketing
Author name	Llana Harvey, Assistant Director of Sales and Marketing
Review date	1st January 2027
Date approved	July 2024 & December 2025
Date published	5th September 2026