whats involved .... need a mortgage etc

SCUBA

Hi I am looking at buying my council property. The council came round and have gone away to value it. I have been told this could take two weeks. I am hoping they value it at a good price

If they come back with a good price. I am looking at a mortgage of £27,000 as I have a good sum to put down.
I would like the Mortgage to be no longer than 10 years.

I would like some advice on who to go with for mortgage and also building insurance etc. This is all new to me.

Thank you for taking your time and responding

kingstreet

Ok.

At this point, the council will come back with a valuation, from which your discount will be deducted. You will get a formal offer which you have upto twelve months to accept.

At that point, you need your mortgage and a solicitor. Based on the amount you need, I can't see you having a problem getting it, unless you have something odd in your financial makeup.

You could deal with a whole market or independent broker to find you the best deal, or you could do it yourself. Same with the home insurance.

Conrad

You should go direct to lenders as the direct deals will almost certainly be the cheapest with the likes of CO - OP, Direct Line, HSBC and First Direct.

As to who to chose, well thats like me asking you where I should go on holiday - to answer the question you'd need lots and lots of information from me and to define my PERSONAL motivations.

For example you might be the sort of person that prefers a fixed rate, or you might be someone that wants no or minimal fees.

Also look at the rates of your small local Building Society as the service tends to be considerably better, with a local Human hands on approach whereas dealing with big lenders is very impersonal and clumsy and you spend hours on the phone.

Suarez

How are you eligible to live in a council house if you have a "good sum to put down".

Corrupt I tell ya.

SCUBA

Suarez wrote: »

How are you eligible to live in a council house if you have a "good sum to put down".

Corrupt I tell ya.

Who the HELL ARE YOU TELLING ME I AM CORRUPT
:mad::mad::mad::mad::mad::mad::mad:

I should not have to explain to no one how I come to have a large amount to put down and be living in a council property. BUT FOR YOUR INFORMATION ..... I recently lost my husband ...... believe me i would much rather have my husband alive and living in a COUNCIL PROPERTY ....but now i am trying to sort my life out and look after my future and my childrens !!!!

mambo69

well said OP, sorry to hear of your loss.

if you are a customer of a bank or building society maybe see them first, as they know your history it may be easier.

DTDfanBoy

Hi SCUBA,
I'll try to offset the completely unnecessary post from Suarez, by hopefully offering you some helpful advice.

While I haven't had any previous experience with purchasing a council property, I have made use of various options to purchase property in the past, which if the information given by kingstreet is correct, seems to be what the council is effectively offering you.

If you do have 12 months to either accept or decline the offer from the council, and you also have the option to reapply to the council for another valuation in the future, should you decline this one, the following information may be of help.

Given that property prices are currently falling around the majority of the UK, quite substantially in places, you may benefit from making use of the 12 month option the council seem to be offering you.

The government website http://www.landregistry.gov.uk/ allows you check annual falls in your area, it's not overly specific but will give you a general idea what has happened in your area in the past.

If the interest from your current savings is currently more than your rent, you’ll be better off waiting for nearly 12 months, to see what happens to house prices in your area. If the property prices in your area have increased in that time, purchase the property, if they have fallen decline the offer, then have the property revalued. Then repeat the process.

Providing the interest from your current savings will fully cover the rent, you have nothing to lose by doing this, in fact if the interest from your savings exceeds your rent you'll come out ahead, and you will be able to purchase the property at the bottom of the market. Even if the interest you are currently earning does not fully cover the rent, you may still wish to consider doing the above if you feel property prices will decrease in the near future. It could be a very small price to pay to ensure you don't buy into a falling market.

Given the current climate a 12 month option to purchase would be something most house buyers would gladly pay a premium for, and seeing as you could potentially be getting one for free, I'd hate to see it go to waste.

Hope this helps

SCUBA

Thank you all for you messages. Will have a good read up on who is best to go with.

Regards Lorraine