Right to buy (RTB) mortgage, which bank/broker?

authentic

Looking to apply for RTB mortgage.

Anyone knows which banks/building societies are more likely to approve the mortgage? Or perhaps it's worth going via a broker? Any reliable brokers in London who specialise in RTB mortgages?

My credit rating is good - no CCJ's or missed payments.

Dave_Ham

There are a few lenders that have slightly differing criteria on Right To Buy, specifically those that will use the discount as full deposit and those who want a contribution.

The most suitable lender will be wholly dependent on the circumstances, although positive you have no adverse credit history as tight to buy and adverse do not necessarily mix well.

Have a chat with friends/family for a broker recommendation, as this will probably be more practical and cost effective.

All the best

pukkamum

We are in the rtb to buy process at the moment and I would definitely recommend going with a broker as I was under the impression that not all high st lenders are willing to do them.

ACG

Not all high street lenders will do them.

As Dave says, the deposit can vary massively from lender to lender, some will require a deposit on top of the discount, others will not.

Dave Ham above is in London. Hes helped me out on a couple of cases.

authentic

Great, thanks very much for your replies. Will start looking for a broker.

heston2014

We are going through a RTB purchase and one could say our case was not quite as straightforward (ex-IVA and high unsecured debt). We were declined by Natwest and Nationwide although our joint income passed the affordability.

After reading up this forum and made a couple of enquiries, I found a very good broker *cough* *Dave_Ham* *cough* (hope I am allowed to say) and got in touch with them on 24th June.

24/06 - Made initial contact and discussed our situation
25/06 - Broker successfully obtained a Decision in Principle
26/06 - Submitted all our paperwork and full application was submitted
27/06 - Valuation payment debited from card
03/07 - Valuation carried out
04/07 - Exactly 1 week after Full application, we received our Mortgage Offer from the Halifax!!!! YAY!!!!

50% RTB discount
No deposit required
Latest payslips requested on Full application (although we provided all our details including copies of Credit reports to broker)

We never thought we would get a mortgage due to ex-IVA and high unsecured debt, but our Dave's team really made the whole process transparent and they were very helpful, even though I kept asking too many questions, they were very reassuring and their services are impeccable!

Cannot thank them enough for all their help, most importantly for obtaining a mortgage for us. There are brokers out there that charge fees upfront and trashes your credit file due to incompetency. Dave's team charges a fee upon receiving a mortgage offer and I can honestly say it was money well spent for us.

Good luck with yours! :-)

pukkamum

Wow brilliant post, really pleased for you heston2014, we are going through a RTB and your story is very heartening and well done Dave-Ham job well done!
So good to read a positive!

Rafal35

Congratulation heston2014 !!! I also want apply for right to buy,got small debt but planning to repay it before apply for a mortgage,but I also will have no deposit(or very small one).Can you tell me what mortgage APR you get?I am expecting price from council between 100-120k for a house.Its 3 bed terraced house.thanks

leveller2911

With the recent mortgage regulation changes (tightening up on lending) I wonder why lenders are allowing RTB mortgages to people who are post IVA, high unsecure debt (as in post #6) and still able to use their RTB discounts as deposit?.If someone has been reckless in the past and hasn't saved a bean towards a deposit why are lenders allowing the tenants RTB discount as a deposit.Surely they should have to show a history of good financial management and saving for their deposit.

If someone wants to buy a house on the HTB scheme and they have saved a 5% deposit they have to jump through hoops and yet the RTB seems to be treated differently. Any particular reason why?.

This seems to me a recipe for disaster when people show a bad history of financial management.

There is also the fact that these people would still be entitled to Social Housing if they were repossessed in the future so what safeguards does the taxpayer have that the lenders are carrying out real due diligance. I know of 2 families who purchased under the RTB scheme and are now back in Social Housing.

ACG

You have a £100k house with £50k equity.
So from a risk perspective there is very low risk, if they do not pay the mortgage there is plenty of equity in it.

95% mortgage good payment history or not is still significantly more risk. Nobody can predict the future so if repossession was needed there is very little equity in it.

leveller2911

ACG wrote: »

You have a £100k house with £50k equity.


So from a risk perspective there is very low risk, if they do not pay the
mortgage there is plenty of equity in it.

I can see there is little risk to the lender but considering the risk of default is higher than someone who has a good credit history ,when its a taxpayer owned house does either side (lender or Council) have any obligation to make sure the buyer is financially suitable to buy the house?.

Its not in the Councils/Goverments interest to sell a council house to someone who has a history of poor financial managment and would pose an increased risk of repossession and may well end up back on the housing list.

So I guess my question is: During the RTB process does anyone on the sellers side is there anything in the conditions of the scheme that addressess someone credit history?. Or do we have a system whereby anyone who qualifies for the scheme and has poor credit history will always get a mortgage on the property due to the high discount they have?.How is the best interest of the taxpayer being addressed?.

Seems as though common sense doesn't enter anywhwere here. It seems like a similar way of thinking as payday loans "never mind how much debt your in ,we will lend you the money with a affordable repayments".

With no thought as to whether or not its in the best interest of anyone except the lender.