Right to buy (RTB) mortgage, which bank/broker?

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Comments

  • ACG
    ACG Posts: 23,713 Forumite
    First Anniversary Name Dropper First Post I've helped Parliament
    Once it has been bought it is no longer a council owned property. It is owned by the tenant who purchased it with a charge on it by the lender.

    If anything its actually better for the council from a risk perspective. The risk has moved from the council to the lender. Why would the vendor (the council) be interested whether the person buying the property has a good credit history or not?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • leveller2911
    leveller2911 Posts: 8,061 Forumite
    ACG wrote: »





    If anything its actually better for the council from a risk perspective. The
    risk has moved from the council to the lender. Why would the vendor (the
    council) be interested whether the person buying the property has a good credit
    history or not?
    One of the top priorities of the Council should be that the buyers is financially sensible and don't end up back in Social Housing again. I accept there is no guarantee of this but allowing people to use their discount as a deposit shows a total lack of financial management.

    From an income prospective its not better for a Council and the mere fact that the buyer may end up back in Social Housing is a disaster for a Council, another family needing Social Housing with 1 less house to rent out.

    Its shocking if there are no rules in place re a tenants "financial suitability " to buy the house from a council point of view.

    There seems little difference in regulation/rules than Pay day loans.In the future will we see Councils taken to court by repossessed RTB homeowners claiming the Councils/Lenders should never have allowed them to buy their houses.

    I'm not commenting on those who have a good financial history (although I don't agree with the scheme) I'm talking about the ones with poor credit history/financial management.
  • ACG
    ACG Posts: 23,713 Forumite
    First Anniversary Name Dropper First Post I've helped Parliament
    They rely on the lenders to do the financial checks.

    Anyone that buys a right to buy property and lets it get repossessed would have to be pretty numb.

    I think you are trying to find problems. More often than not the mortgage is less than the rent so it would be unlikely that what you are saying would happen.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • leveller2911
    leveller2911 Posts: 8,061 Forumite
    ACG wrote: »
    They rely on the lenders to do the financial checks.


    But theres the problem, what is in the lenders best interest in not in the Councils best interest. The lender is in a no lose situation but the Council are.
    Anyone that buys a right to buy property and lets it get repossessed would have
    to be pretty numb.

    I agree but it does happen.I know plenty of people who have used the Scheme and are fine .I know 2 families who were repossessed and are back in Social Housing. Its a small minority but they shouldn't have been allowed to buy their houses in the first place.
    I think you are trying to find problems. More often than not the mortgage is
    less than the rent so it would be unlikely that what you are saying would
    happen.

    I'm against the scheme on principle but either the rules are there or they aren't.

    Seems as though they aren't.....
  • jonesk5
    jonesk5 Posts: 2 Newbie
    I realise this is an old thread. But if Dave ham is still a morgage broker please contact me
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