hi

J0ck_2

hello there!was just looking for some thoughts or help..i am going to buy my house from council and have been offered a loan from the council at 4.06 percent.been to see a financial adviser but feel he's veering me towards a mortgage,telling me about low introductory interest rates but I feel 4.06 percent for period of loan is a pretty safe bet.i mean interest rates with a mortgage are only going to go one way and I'm pretty certain they'll go above 4.00 percent in the future.any thoughts please?

Thrugelmir

Hi, :beer:


Is the Council offering you a fixed interest rate for the entire term of the loan?

Senior_Paper_Monitor

Fascinating - I've never heard of a council doing this - can you give more information (in particular which council)?

J0ck_2

I have a meeting with council later in week to confirm its a fixed rate. without going into too much detail it is a council in central Scotland.

Senior_Paper_Monitor

Ah OK - RTB in Scotland is totally different to England.

J0ck_2

yes. surprised me when I was told. has got me in two minds about the whole thing as obviously I am a first time buyer.

Thrugelmir

J0ck wrote: »

I have a meeting with council later in week to confirm its a fixed rate. without going into too much detail it is a council in central Scotland.

Keep us updated with events.

J0ck_2

will do. thanks

Yorkie1

Make sure you find out whether the rate is fixed for the whole length of the loan, not just for part of it (after which time you're at the mercy of variable or higher rates).

J0ck_2

for sure. I don't think it would be worth going for it if it wasn't fixed for the whole term. even so its difficult to make my mind up which to go for with different opinions from advisors,family and friends. suppose I just have to choose one and go with it

dimbo61

Check the whole deal VERY carefully as you may want to sell in 5/10 years time and maybe hit with a big Early Repayment Charge if you take a fix over 20/25 years?
With many RTB you have to pay the discount back if you sell within 5 years and some even tie you in for up to 10 years.
Read the paperwork VERY carefully and ask a solicitor to look at it for you if you cannot understand any parts