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  • FIRST POST
    • weesie81
    • By weesie81 6th Sep 17, 12:59 PM
    • 221Posts
    • 42Thanks
    weesie81
    First time buyer at 62 lots of questions
    • #1
    • 6th Sep 17, 12:59 PM
    First time buyer at 62 lots of questions 6th Sep 17 at 12:59 PM
    My mum and her other half have lived in their council house for 22 years 3 bed bungalow
    Right to buy is ending and they have the chance to buy their house valued at £149,000 for £72,000

    They are not well off income of around £25,000 (between them not each) and possibly around £4-5k as a deposit.

    Are they likely to even get a mortgage? They were hoping for between 10-15 years
    Clean credit and very little debt, just sofa, low balance credit card etc
Page 1
    • amnblog
    • By amnblog 6th Sep 17, 1:04 PM
    • 9,747 Posts
    • 3,763 Thanks
    amnblog
    • #2
    • 6th Sep 17, 1:04 PM
    • #2
    • 6th Sep 17, 1:04 PM
    Why would they want to buy and pick up the maintenance cost?
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, 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.
    • weesie81
    • By weesie81 6th Sep 17, 1:08 PM
    • 221 Posts
    • 42 Thanks
    weesie81
    • #3
    • 6th Sep 17, 1:08 PM
    • #3
    • 6th Sep 17, 1:08 PM
    Hi yes they are happy to pick this up its a lovely solid wee house that has been very well maintained by both them and the council.
    Has double glazing, central heating new kitchen etc already.
    • ACG
    • By ACG 6th Sep 17, 1:58 PM
    • 15,398 Posts
    • 7,786 Thanks
    ACG
    • #4
    • 6th Sep 17, 1:58 PM
    • #4
    • 6th Sep 17, 1:58 PM
    What sort of income will they have when they retire?
    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.
    • phillw
    • By phillw 6th Sep 17, 2:15 PM
    • 806 Posts
    • 400 Thanks
    phillw
    • #5
    • 6th Sep 17, 2:15 PM
    • #5
    • 6th Sep 17, 2:15 PM
    You should find a decent mortgage adviser, you probably need a specialist.

    But a finger in the air estimate is that it's going to cost them £650 a month to pay that back. Plus they'll have responsibility for upkeep on top.

    If they plan on staying there then it will either form part of their estate or pay towards their care fees.

    If they plan on selling it as soon as they can and pocketing the profit, then it will soon disappear when they have to pay full market value for rent.

    Why do they want to do it?
    • csgohan4
    • By csgohan4 6th Sep 17, 2:43 PM
    • 3,767 Posts
    • 2,351 Thanks
    csgohan4
    • #6
    • 6th Sep 17, 2:43 PM
    • #6
    • 6th Sep 17, 2:43 PM
    why sacrifice a life term tenancy for debt and insecurity? What do your parents want? Do they truly know what they are getting themselves into, do they know how much a boiler or new roof costs?


    Is the house leased?
    "It is prudent when shopping for something important, not to limit yourself to Pound land"
    • dimbo61
    • By dimbo61 6th Sep 17, 3:27 PM
    • 9,456 Posts
    • 5,124 Thanks
    dimbo61
    • #7
    • 6th Sep 17, 3:27 PM
    • #7
    • 6th Sep 17, 3:27 PM
    A couple of Mortgage brokers have already asked some very important questions!
    Now under Right To Buy your mum and dad do not need a deposit because the property is discounted.
    So they are really looking for a £72,000 mortgage which on £25,000 income seems possible.
    They would be well advised to find a good Whole of Market mortgage broker who deals in RTB ( right to buy)
    Will Mum and Dad get pensions when they retire?
    The savings maybe needed to pay fees, mortgage costs,survey etc.
    They need to read all the paperwork involved in the RTB as most require you to live in the property for at least 5 years after buying.

    Others have pointed out that Mum and Dad would be responsible for the maintence of the property and other costs ( building insurance, boiler repairs etc)
    Good Luck
    • weesie81
    • By weesie81 6th Sep 17, 5:55 PM
    • 221 Posts
    • 42 Thanks
    weesie81
    • #8
    • 6th Sep 17, 5:55 PM
    • #8
    • 6th Sep 17, 5:55 PM
    Ok so many questions will try to answer all
    I have no idea of retirement income but yes they both have pensions
    I think the long term plan would be live out their days there as its a bungalow there should be no need to move.
    Why now, its never been an opportunity before as their home was tied to his job and only very recently was it transferred over to being separate to the position.
    I think they would have always liked to own it rather than rent so are delighted it is now an option.

    Very aware of costs like I mentioned before they have maintained it well over the past 22 years with them covering a lot of the costs themselves, to be honest its their pride and joy.

    I had no idea there were different rules for right to buy so thank you I will look into that.
    They were just going to go to RBS who they have banked with forever and ask there but I thought I would try here first for any helpful info.
    • csgohan4
    • By csgohan4 6th Sep 17, 6:19 PM
    • 3,767 Posts
    • 2,351 Thanks
    csgohan4
    • #9
    • 6th Sep 17, 6:19 PM
    • #9
    • 6th Sep 17, 6:19 PM


    They were just going to go to RBS who they have banked with forever and ask there but I thought I would try here first for any helpful info.
    Originally posted by weesie81


    That's very old fashioned thinking and one that will get you ripped off. Loyalty no longer pays I'm afraid. We switch our energy and insurances every year, why should getting a mortgage be any different, shop around, but a mortgage broker would be better
    "It is prudent when shopping for something important, not to limit yourself to Pound land"
    • obay
    • By obay 6th Sep 17, 7:13 PM
    • 322 Posts
    • 191 Thanks
    obay
    I'd say do it - I didn't know RTB didn't need a deposit...

    They might be 62 now, pay the mortgage over 8 years and pass down £140k (potential value) to the kids (you).
    1/12/16 - £152,599.00
    • csgohan4
    • By csgohan4 6th Sep 17, 9:34 PM
    • 3,767 Posts
    • 2,351 Thanks
    csgohan4
    I'd say do it - I didn't know RTB didn't need a deposit...

    They might be 62 now, pay the mortgage over 8 years and pass down £140k (potential value) to the kids (you).
    Originally posted by obay


    You wonder why morally RTB is wrong, at the tax payers expense. I was never handed a discounted house at the tax payers expense, yet worked all my life, why should anyone else be different?


    Sure it's legal but your taking another house away from a family who need it more, rather than use it as a cheap excuse for inheritance than secured tenancy
    "It is prudent when shopping for something important, not to limit yourself to Pound land"
    • Rich2808
    • By Rich2808 7th Sep 17, 7:06 PM
    • 478 Posts
    • 385 Thanks
    Rich2808
    If they are both first time buyers they should be putting their savings into a help to buy isa. They would get 25% of the balance towards the purchase price as a government bonus.

    I agree with posters about RTB - but blame the government not people who utilise it.
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