I'm looking for a special mortgage to buy an-ex council property.

gregory77

Hello all!

I'm buying a ex-council house. It has a special condition because it is in a council 9 floors building. and:
- most bank don't provide mortgages for council buildings.
- this is has been valuated and it is a special type of building.

I have a £50.000 deposit and just need a £45.000 mortgage but most banks and especially my bank Bank of Scotland refused.

I earn £18.000.

Any ideas? I'm desperate....

herbiesjp

You will be able to find a mortgage based on the figures you have posted

What are the special conditions on the property - what is the property type?

gregory77

Sorry for late reply. I was away in holidays.

It is an ex-council house.

Most namks refused the mortgage.

jackieb

Banks do lend money to buy ex-council properties. Maybe it's not of traditional construction or something? ie made of concrete?

Scott

- this is has been valuated and it is a special type of building.

As noted above, this is far more likely to be the issue than the fact it's a right to buy mortgage, as those are extremely common.

Do you have any further information for us on the kind of construction? If you've had it valued, this would be on the valuation.

herbiesjp

Nothing wrong with ex-local authority properties to purchase via banks, unless the construction type is non standard

Is it a concrete build os some sort? Is it a high rise block - if so how floors are there in the block?

MortgageMamma

The main issue is that it is nine stories high and nto many lenders will look at that, also if its concrete construction as are most high rise flats then thats another issue. you have a good deposit and only need to borrow a small amount, so if you use a whole of market broker then you should not have any problems finding the mortgage. beware of these "specialist" right to buy companies on the telly, they will charge you a whopping fee and most only work with one or two lenders.

MM

kenshaz

Lenders look at three factors when assessing potential borrowers - income (to ensure mortgage is affordable); past credit history (to try and make sure borrowers will be good payers) and finally the PROPERTY

In your case, the latter is obviously outside the norm, as Lenders do not generally feel comfortable taking high rise flats into mortgage, especially when coupled with concrete construction. {strange because the Romans built with concrete)



Some Lenders will take a common sense approach to Lending based on the overall assessment of all three factors detailed above. Attitude to high rise flats in London is always slightly different, given the fact that there is often a strong market for most properties at the right price given the lack of affordable housing. But outside London the appeal of a high rise flat decreases.
Will the flat be in a block that is a 100% private?
Will it be well managed?
Just a final note ,I have heard that HSBC are in the market for mortgages on high rise flats ,give them ring.

MortgageMamma

Hello Kenshaz - nice to see you back

Not seen you for ages - have you been away on holiday?

kenshaz

MortgageMamma wrote: »

Hello Kenshaz - nice to see you back

Not seen you for ages - have you been away on holiday?

Yes.Devon ,the first week was sunny then it rained and rained and rained.We walked in the rain and and laughed and made the best of the situation.

MortgageMamma

I like Devon area. we are off to otterton and then torquay soon. Sorry to hear of the rain but like you say its only weather - we are talking about packing books and board games for the kids in case it continues like this when we go

Nice to see you back anway. Me and absolutebounder wondered where you were.