Right to buy mortgage advice please :)

geeksandlies

Hi All,

I am a complete mortgage n00b so please excuse the daft questions and the need to have things explained to me!

I did a brief search on here but don't seem to be able to find what i need in the hundreds of results..

So here we go...

1. Do we need a deposit on the mortgage? We get the max discount on the property which for us is £38,000 so call the purchase price £80,000 (it might be more, might be less but this is what we *think/guess* it will be.

2. Can we get additional money out of our mortgage (equity?) to cover £5,000 of credit card debts?

3. Between us we both earn just shy of £42,000 however we don't have a perfect credit score with a couple of defaults dated in 2008 ish (none since) I have been in my job for 2.5 years and she has been in her's 1.5 years. Does anyone think we are going to have trouble getting a mortgage agreed?

4. Where is the best place to find the most suitable mortgage deal for us?

5. Anything else we should be wary of? I know we have to stay for 5 years and offer the council the first throw of the dice should we decide to sell after that.

Thanks in advance for your patience.

Geeksandlies

kingstreet

No
No
Possibly
Whole market broker
Why not wait for the Govt policy change to see if it makes RTB different/better

geeksandlies

Thanks
Damn!
How possibly?
Such as?
What changes?

Thanks for the help @kingstreet

kingstreet

Hm. Borrowing into the council discount isn't permitted for debt consolidation. You might have got away with home improvements once, but I'm not too sure about that these days.

I can't say if your credit problems mean you can walk into any high street branch and be successful.

That's why I suggested a whole market broker. Take recommendations from friends and relatives in your area. Some take commission from arranging the deal with the lender. Others may do that and charge you a fee on top. Approach with eyes open and know what you are getting into before you sign anything.

You should be given an Initial Disclosure Document showing how the broker will be paid, right at the outset, and a Key Facts Illustration must be given to you showing all the costs and other details of the recommended lender/product.

Cameron announced sweeteners for RTB. No idea what they will be yet. Might be worth holding off until you know more...