Right to buy mortages

sipar

Hi,

I have just been reading the posts in an earlier thread regarding the right to buy, and there seems to be some negative feeling towards council tenants who take advantage of this right. I am a taxpayer; have been paying rent for the past 10 years, and am now thinking about taking advantage of the right to buy scheme. I have a couple of questions relating to this, so request that only valid answers or constructive feedback be posted here. Thanks

1. My property is worth 215 000, and I can buy it with a 15 000 discount. Is it possible for me to use this discount as a deposit for the house? What kind of monthly repayments would I be looking at if I do this?
2. Can anyone recommend good right to buy mortgage lenders?
3. Why are the best mortgage lenders not interested in right to buy schemes?

Gold_Shogun

I don't know the answers to 2 & 3, so unfortunately can't help you there.

As for 1 ... I do know that many lenders are happy to offer upto 100% of the discounted purchase price on RTBs, so I wouldn't imagine that your lack of "real" deposit would be a problem.

One thing for you to watch out for is the amount of rip-offish "additional fees & charges" often added on by some RTB lenders.

Also, I don't know if England is the same as here in Scotland, but it is (or at least used to be, don't know if it still is) Mandatory that the Council HAD to supply a mortgage IF the buyer was unable to obtain through the usual commercial lenders (due to disability, age, etc) ... It might be worthwhile you making some enquiries locally.

diesel9181

should you not be able to get a normal mortgage cause i thought the council offered mortgages as a last resort but at a really high rate. when we bought we were told to expect to pay roughly £6 / month for every £100 we borrowed. this changes depending on length of repayment period but it gave us a very rough guide. hope it all goes well!

Richard_Webster

As far as I know, most of the big high street lenders will offer 95-100% of the actual price paid (i.e. value less discount) because their mortgage is pretty secure because of the effect of the discount.

Of course the point could be that the big lenders won't lend because your income is not sufficient to meet their criteria - but that isn't really to do with whether or not it is a RTB.

As a conveyancing solicitor I believe the information given in the post to be useful but I accept no liability except to fee-paying clients.