Right to Buy

archie1

I have taken a repayment mortgage to purchase my Council House in October 2005 for £66,775. I sought advice from a Broker who recommended a company called Platform as I had one bad credit report against my name and therefore could not go to a high street lender. Since 2005 my Mortgage payments have increased dramatically from around £425 (4.87%)to now £625 per month an increase to (8.62%) . Being a new memebr in this forum has anyone got any advice for me please as this is a staggering amount for me each month! Would it be better switching companies, however, not sure which lenders will want to touch RTB houses... as well as the extra charges incurred for switching lenders. I would appreciate any of your views...

UK007BullDog

What kind of property do you have?

What was the bad credit mark against you about?

archie1

I have a 3 bedroom terraced house and the only one bad credit report against me is to do with a High Street Bank when I incurred charges after asking the Bank Manager to cease these charges due to financial difficulties a few years ago; I have disputed this with the bank and as of last year took the issue to the Ombudsman. However, apart from that my credit report is excellent.

lianne1978

we bought our house on a right to buy and got the mortgage with alliance and leicester in 2003 without any problems.

archie1

But I have one bad credit against me - would alliance and leicester accept me if I want to change Mortgages?

lianne1978

I was accepted by A & L in Dec 03 and until then I was not very good at managing my finances and got quite alot of unpaid marks against catalogues and a credit card and I still got the mortgage. I must point out though that I bought the property with my partner who doesn't have any credit problems, albeit the forgotten payment once in a while.

herbiesjp

Have you got any penalties to leave Platform?

archie1

Hi yes I am not too versed on these financial matters, however, looking at my documents it seems that if I move Mortgages this year I will need to pay a maximum charge of £4006.50 plus a redemption fee of £125.00. It also stipulates that if I pay the mortgage in full this year there is a max charge of 5% of the amount repaid (do not understand this)....!!

herbiesjp

Does it state when the penalty expires?

It sounds like the 5% and the £4006.50 are one and the same figure - the penalty is expressed as a percentage, but it is then put in monetary terms to make it clearer as to how much you will have to pay

archie1

Hi yes, thanks for your help on this - the penalty expires after October 2008. I cannot afford to stay with this company due to the increasing rates I am currently paying, half of my salary goes each month paying the mortgage alone never mind the bills- any suggestions, will be greatly received... !

lianne1978

have you considered ringing high street lenders to check they will give you a mortgage on right to buy and then check your credit file, if you have been paying a mortgage on time for over a year that surely helps your credit rating? Then you could probably borrow the extra with the mortgage to cover the fee and still be paying less? That's what i'd do but there are probably more suitably qualified people on here who could offer you advice?