100% Right to buy Mortgage - 34K Discount

herbiesjp

I just cut and pasted from payless - seemed to work ok

payless

Herbie / Fairdo

the signatures are a bit of a pain to get right, as lose some of the formating on cut / paste- and some gain it ( I had to change mine a few times to get it to what I think is right )

the black is not bold, but the red first line should be !
centring, fonts etc can all be selected in the userCP... so we can all look the same!

( can't go into great detail- as my broadband is down , so I'm on gprs/3g)

deecy

Thanks for the ongoing advice,

to clarify; we have no deposit - if the 34K discount is regarded as deposit thats all well and good but we do need some extra funds on top of the cost of the house for much needed improvements. If these were done by the HA they would have been knocked off the discount.

We could save a deposit, but the discount would not get any larger, & the house prices would rise

I think council or in this case housing association housing is for people who have/had nowhere to live. It's not dependant on your income, either current or future.

It may seem an advantage to live in a HA house but as ours is in a dear part of the country I've had to wait 15 years to be at the point where I can afford to buy any property not just this one. One bedroom flats going for £140K and with 2 children they are a little too cramped.

Madjock

You cannot borrow more than you are paying for the property with a standard 100% mortgage. If you are paying 186k, that's what you can borrow.


HOWEVER, Northern Rock do a Together product, of which 100% is secured and an additional 25% is unsecured. So you can get a mortgage for 186k, and borrow another 25% as an unsecured loan. I don't think Northern Rock would offer a Together mortgage for a RTB, and your credit history would have to be clean.
There are sub prime lenders who offer unsecured lending on top, you really need to see a broker.

seven-day-weekend

Public Housing, AFAIK, is not a means-tested benefit. Anyone can apply and go on the list. Then many councils run a 'points' scheme so that the person with the most points for that type of property (because of children, disability, time on waiting list etc) gets it. I don't think it's ever been dependent upon income.

UK007BullDog

It also depends on the property. Is is a house, flat or maisonette? Is is concrete or brick?

If it is a maisonette and with deck access then you can forget northern rock.

If you are not happy with the IFA then find a mortgage broker. IFA are more for investments and insurances. Mortgage brokers are specialists in mortgages.

MissScarlett_3

deecy wrote:

Hi

We have full discount on our council house which equates to £34K off the value. The value is £220K we have to pay £186K if we want to buy.

Is it possible to get a lender to lend us 100% of the value so we can use the extra £34k - which we wouldn't need for the purchase - on improvements?

We aren't sure if a 100% mortgage is 100% of the value or 100% of the cost of the house.

Thanks in advance

Did you consider having the valuation determined by the District valuer or does £220 reflect the current market value? worth considering;)

dwight-van-man

Madjock wrote:

You cannot borrow more than you are paying for the property with a standard 100% mortgage. If you are paying 186k, that's what you can borrow.


HOWEVER, Northern Rock do a Together product, of which 100% is secured and an additional 25% is unsecured. So you can get a mortgage for 186k, and borrow another 25% as an unsecured loan. I don't think Northern Rock would offer a Together mortgage for a RTB, and your credit history would have to be clean.
There are sub prime lenders who offer unsecured lending on top, you really need to see a broker.

This is totally inaccurate - see my previous post for the actual position.

deecy

Hi guys

£220K as valued by the man the HA sent round, it's about 10K under market value.

It's a 3 bedroomed brick built semi detached about 15 ish years old.