Right to Buy

Austinbostin

Hi
Just looking for a bit of advice
I have been told I will not get a mortgage on the right to buy because I have a poor credit score. I currently have no debts but I only cleared them all off a few months ago. I have 3 defaults on my score 2 in 2010 and one at the beginning if this year
The house I would like to by is valued at £16500 And I would need a mortgage for £90000.
I was told that there are only about 6 lenders that deal with right to buy and none of them will touch you if you have any adverse credit at all.
I feel like I am being penalised even thought I have paid all my debts off completely I'm now going to have to live with this for the foreseeable future
Does anyone know if this is correct, does anyone know if there is an alternative?
Any advice would be greatly appreciated

Hump

Have you compared repayments on a 25-35 year term repayment £90k loan versus your current rental - and have you factored in the inevitable interest rate rise(s)? Remember part of the discount is repayable upon sale of the property - over, I think, the first 5 years after purchase

Austinbostin

Yes I have compaired but I can't get a mortgage!
The few options that do right to buy don't take customers with adverse credit history

leveller2911

Austinbostin wrote: »

I feel like I am being penalised even thought I have paid all my debts off completely I'm now going to have to live with this for the foreseeable future
Does anyone know if this is correct, does anyone know if there is an alternative?
Any advice would be greatly appreciated

Oh behave,I feel I'm being penalised because I don't have the Right to Buy..... Think yourself lucky your being given a £75k discount...

My advice is to work hard build a credit score and save like the rest of us....;)

kingstreet

There are a lot more than 6 lenders who offer RTB products. I've just counted 18 on my sourcing list.

Whether they are prepared to lend to you will be based on their criteria.

Who have you spoken to so far?

Any independent or whole market brokers?

Austinbostin

I do think myself lucky to have been given this option and I (we) have worked hard all our life. I live in an area where the cost of the houses do not compare to people's wages (otherwise we wouldn't be in a council house) and through circumstances I cannot move out of the town. I have been told by two financial advisors that there are only a limited number who currently offer right to buy and none will take anyone with adverse credit. I'm just a bit disappointed that we have worked hard a paid all our debt taking over 6 years to do this and now I have the extra cash I would have like to get a mortgage and am now being told I can't because I've had debts - there seems to be nregard to the fact that I've paid them off and not missed a payment for 6 years

kingstreet

On which credit files do these adverse credit entries appear? One, two, all three?

Austinbostin

Hump wrote: »

Have you compared repayments on a 25-35 year term repayment £90k loan versus your current rental - and have you factored in the inevitable interest rate rise(s)? Remember part of the discount is repayable upon sale of the property - over, I think, the first 5 years after purchase

Yes I have compared mortgages but not a loan. I have factored in the increase of interest and we can afford it ( we both work) we just can't get a mortgage

Austinbostin

kingstreet wrote: »

On which credit files do these adverse credit entries appear? One, two, all three?

I am not sure as I have only checked one - experian and it was on there, it show 3 defaults 2 in 2010 and one st the beginning of this year.

Austinbostin

kingstreet wrote: »

On which credit files do these adverse credit entries appear? One, two, all three?

I am not sure as I have only checked one - experian and it was on there, it show 3 defaults 2 in 2010 and one st the beginning of this year

kingstreet

Order the other two so you can see the full picture, then put them in front of an experienced whole market mortgage broker. Your use of the word "financial adviser" puts me in mind of someone who is a direct salesman for a life office, the old Dunbar-type rep. You need a proper whole market mortgage broker for this, not a part-timer who normally flogs life cover for his day-job. Especially, no estate agency advisers who work for a national chain with a limited panel.

Equifax

https://www.econsumer.equifax.co.uk/consumer/uk/order.ehtml?prod_cd=UKSCR

CallCredit

https://www.callcredit.co.uk/stat-report-online/index.php?action=basket_add&tpl=setRegister&package=63&amount=1&mode=clear