Mortgage searches on moneysupermarket.com

lowis

Does anyone know why when I do a 'Right To Buy' mortgage search on moneysupermarket.com the monthly payments come out at almost DOUBLE compared to a straight-forward 'First Time Buyer' mortgage search?

Are RTB borrowers considered more risky or something just because they are council flat dwellers?

ReportInvestor

Some Council properties bought under RTB have suffered huge falls if the area has gone downhill and become an area for gangs and drugs.

So there can be a risk attached to the property - it's not just the owner.

lowis

so would a lender look at individual circumstances for someone applying for a RTB mortgage?

i live in a well maintained block (top floor - 11th) in one of london's most desirable postcodes (EC1). it is highly unlikely that my immeidate area will turn into something like the broadwater farm estate in a hurry...but would i still be penalised 'just in case' my block gets some undesirables living in it?

Ian_W

Hi lowis,
I think you would be better seeing a broker - "whole of market" and "fees free" are the watchwords - as you've just identified another issue [11th floor] that will also restrict who will lend to you too. There was a thread only in the last day or two about lending on high rise props which I confess I didn't read but it should be within the first couple of pages.
HTH.
EDIT: In fact it's HERE but no-one has yet replied with any info though the original post may help.

lowis

i am a bit worried about the 11th floorm thing but my immediate neighbours got a mortgage with little problem - they were told the location was excellent. fingers crossed eh?

Ian_W

Might also be an idea to find out from the neighbour who they got their mortgage from. You won't get caned for high interest cos it's "right to buy" and up in the clouds but a broker should have good knowledge of who will lend and if you keep approaching lenders and getting turned down, it won't do wonders for your credit history if they do checks.

Shouldn't need crossed fingers but BoL anyway.