Right to buy general advice

scottie21uk

Hi folks

Im looking for some first time buyer advice here...My situation is as follows..

30 yr old male
No debts
Apprx 1k in savings
Lived in a council propert for 7 years (Scotland)
Full time earnings of 15k a year

I decided the other day to apply to buy my falt (I figure it doesn't affect your rtb if i dont this time round so might as well get a figure)
Its very hard to estimate in my area what the value is going to be of the house as most have been sold under the old RTB scheme at around 11-15k(70% off) As im under the new RTB the very most i'll get as a discount would be (15k). The most recent house that sold in the area to a private buyer was for 65k but that was 2 years ago.

So im estimating roughly(hopefully) that it would be valued around 70k and i will get roughly 14k off leaving a mortage of 56k.

Now heres what i need to know...In the past i believe mortage companies would consider your discount as your deposit...Is this still the case in these hard modern times or am i kinda screwed on that front.

Can anyone reccomend a decent mortage broker...Im assuming these are the best guys for finding the best deal around my situ.

Finally and i know this seems very basic but im totally new to mortages hence im not 100 percent on any of this...but are these the basic steps i should take.

1 Apply to buy (done)

2 Seek mortage (About to do with any decent reccomendations)

3. Once the sale price has came through go get a soliciter to do the middlemany stuff between mortage company and council?

4 Rejoice in the glory of my new found noose!!!


Again i know this may seem pretty basic to most of you but any advice is much appreciated.

lincroft1710

Think very, very carefully about buying a council flat, especially if the rest of the block is still council owned. You will become responsible for all repairs and could even have to pay thousands if the council decides the block needs upgrading. You have a secure tenancy so cannot be kicked out unless you cause serious upset to your neighbours or default on the rent.

Remember if you decide to move on an ex council flat isn't the most desirable property in many purchasers' eyes.

Solicitor's fees and mortgage surveyor's fee will more or less wipe out most of your savings and with some mortgages there is an arrangement fee. Even 3.5 times your salary won't get you £56K, only £52.5K.

Suggest if you are determined to buy you have an informal chat with a mortgage broker to see how much you're likely to be lent. Don't be pressured into any deal, you're just making a general enquiry and always find out what repayment would be based on a 5% interest rate.

BitterAndTwisted

I'd be checking to see how much the mortgage payments could be once interest rates increase. To be fair, I think with only £1k in savings it's going to be ruddy tight all round. Bear in mind what lincroft is warning about with regard to possible repairs and refurbishment costs in the future: it's my understanding that the LA have to tell your solicitor about any plans for the next five years. Some folk who took up the RTB in large developments have had to find sums in the region of £20,000 in addition to the quarterly service charges. I expect you realise that now you've put in your Right To Buy forms that all repairs will stop until you've bought? Also bear in mind what will happen, once the purchase goes through, if you lose your job and can't pay the mortgage. There's no Housing Benefit or LHA for home-owners, so you'll be well and truly scuppered.