need mortgage for council right to buy

ejc81

Hi all I'm looking for a bit of advice as to what I can do/where to go with this.

I currently live in a Local Authority property. I've had a RTB valuation @ £80,000. Qualify for maximum discount which is £22,000 in the north east, so offer price of house is £58,000.

My income is £33,000 and I have a personal loan @£7500. I've got 3 defaults on my CR from 2006. 2 are settled accounts but there is 1 outstanding that I'm currently trying to have removed as it is not correct.

I recently enquired with a broker (said they were whole of market) and I was told they could find me a mortgage then a few hours later they said actually no we can't, due to defaults no-one (whole of market) would be willing to lend! I had told them about the defaults at the very beginning

Basically I just want to know if they were 100% correct? Have I got absolutely no chance of obtaining a mortgage due to the 2 settled defaults in 2006?

captainhaggis

I know this isn't what you want to hear, but ARRRRRRRRRRRGH.

You live in the North East - a relatively affordable place to buy - and you make a pretty decent salary. Yet you're ready to take valuable housing stock away from the local authority at the expense of someone else who would probably kill to be in that home.

You could easily go out and buy a property on the open market with the money you earn. It might be more of a struggle, but that's life.

God, the sooner the Right To Buy scheme is shut down the better.

( sorry - just one of my real, real pet peeves and you've borne the brunt of my 48-hours without sleep )

marlasinger

How on earth do you get a council house when you have a salary of £33K??

captainhaggis

And more to the point, how can you morally accept a council house when you earn 33k?!

bear1969

why should he not get a council house on a 33,000 salary ,good luck to you lad hope you can get a mortgage and buy your home ,at a great discount ,captain haggis i work offshore make 56,000 and my wife also works we have a council house and will be putting in to buy ours this year as we have great neighbours and a really great street ,we are entitled to a max discount , so onwards and upwards in 2010 :beer:

Conrad

There are a few smaller building societies that might be able to help. A decent broker will know these.

Just because your existing broker uses the title 'whole of market' in practice this is not what you might think. It is common for brokers to stick to lenders they know - they cant be bothered going through the rigmarole of registering with every lender. Furthermore many are tied to whats know as a netwrok such as Legal & General and these networks can insist only certain 'oanel' lenders are used, even though they are 'whole of market'.

marlasinger

Why shouldn't he get a council house on a salary of £33K??? Are you serious?? £33K is a good income (as is £56K), well above the average and more than enough to get by without relying on a helping hand from the government.

I always thought council houses were mean-tested, and strictly for those who were unemployed or on a very low wage.

bear1969

sorry marla maybe you should look at his past ,as with us i was,nt on 56k when we got our house and you will find you have to have been a tennant for 5 yrs to make max discount ,he may have been kicked out by his parents ,girlfriend was maybe pregnant either way i would say he is more entitled as he works pays taxes ect , so dont judge someone when you no nothing about them,;)

kai666

bear1969 wrote: »

sorry marla maybe you should look at his past ,as with us i was,nt on 56k when we got our house and you will find you have to have been a tennant for 5 yrs to make max discount ,he may have been kicked out by his parents ,girlfriend was maybe pregnant either way i would say he is more entitled as he works pays taxes ect , so dont judge someone when you no nothing about them,;)

I can't believe they don't kick people out of council accommodation who's earnings reach above a certain level, and give it to someone more in need.

It can't be right to earn 56k, live in a council property and get maximum discount to buy the place. There must be thousands of people in need of somewhere to live. Why don't people regularly need to re apply or something to see if they still need the council home?

Not having a go at the person who posted, if the opportunity is there, then why not i guess. But it's just one more thing wrong with the whole system

bear1969

well done kai ,we would have bought a house on the open market if they were selling for what they are worth and not what people think they are worth, house prices are almost unreal why should i have to take out a mortgage of over a hundred and fifty thousand spend all our earnings to buy some bricks and mortar ,when i am quite happy here and able to take my two kids and wife out in our brand new caravan and one year old jeep which is all paid for every time i come home sorry if life does,nt pay dividends for you but we have been in debt and never want to get there again

leveller2911

Just putting my penneth worth into the mix.I have always lived in Council/local Authority housing.I earn £29k a year and self employed.House prices in the area are crazy (£160k minimum, 3 bedroom terraced can be £200k).We have £35K saved up but still can't afford to buy,so we will carry on renting.

My beef is with the discount system, its just plain wrong.People in HA and council houses have NO risk, the houses are generally manitained,if they lose their jobs the rent will be paid,unlike a mortgagee.As for that old chestnut"I paid £thousands in rent over the years,I've more than paid for the house" just doesn't cut it.

Councils and HA should end any RTB and keep them for people who need them(NOT !!!!less morons who don't work and shuck out kids).They should change the tenancy agreements too so if you earn more than enough to buy (like the OP ) they should be given 12 months to vacate the property, Jeezuz Christ OP with the house prices in your area theres no reason why you couldn't save up and buy a house outright on the open market.

Just for the record we have been HA tenants (parents council) for 16 yrs and because of this we don't have the RTB which in all honesty is right.

My sympathy with Bear as he is quite right house prices are rediculous and NOT what they are worth and itd because of all the morons buying for profit rather than a home is one of the main reasons the country is in the sh1te.In my area house prices rose by around 300% in the last 10 yrs where as wages rose by around 35% so work it can't/will not go on.......PS they should also get rid of this "KEY WORKER" rubbish too, everyone who works is "KEY" to the country.