RTB and Tower Block mortgages

Two_Cakes

Hi all

I've lived in council housing for a long while and all the changes (increased RTB discount and 'pay to stay' consultation) are making me consider buying my property for the first time. Does anyone know whether in the current climate its possible to obtain a mortgage for a flat on the 20th floor with the block water tank directly above in a RTB council flat? I'm working and earn in the region of £35K, would get full £75K discount and think the flat might be valued at £200K. I'm paying down debt so currently have no deposit but that could change over the next 6 months. From these forums I've learned that using a broker may be the way to go, but I have no idea if buying my property is realistic. Thanks!

Senior_Paper_Monitor

The good news is that (in principal) there are lenders who will use the RTB discount as the deposit (you provide no cash) .. BUT .. you don't give details of the debt, your credit status or income and there may be 'affordability' problems at this time.

Your biggest problem is probably the building itself - we have some lenders who introduce us to their surveyors who will look at records in advance to ascertain whether a property is likely to be acceptabel (or not) - I would always suggest using a broker (preferably one who has experience in RTB) for RTB purchases for a number of reasons, not least that most RTB qualified borrowers have little financial experience at this level (I hope I don't sound to patronising in saying that but it is generally true).

Two_Cakes

Thank you for your reply and don't worry I don't find your comment patronising, in my case it's true! My income is £35K, debt is £5K and credit status is good, but with the closing of paid off cards and longer time with employer and this address that will improve.

Next door neighbour owns their property, but don't know them well enough to ask about their mortgage! The flat is very central (London) and don't know if that helps or hinders.

Senior_Paper_Monitor

Its not so much location (if anything the more central then the more accepatble it tends to be) but actual build type, percentage of owned/council leaseholds and general condition that counts.

Can't add much more than that other than on pre-survey comment to date we have probably had over two thirds of suggested properties rejected as "unsuitable".

Your income/financial info sounds do-able even today (if a bit tight due the debt).

Conrad

This will all hinge on the surveyors opinion. Even items such as lifts can be a reason for decline as high rise lift systems have often proved costly affairs and lead to some tenants getting into arrears with thier share of maintenance contributions.

I know of only one lender that might do this but as paper monitor suggested, factors such as the lenders current lending exposure on your estate will have a baring on whether they can lend.