Right To Buy Mortgage

pepp77

Hi

I have had an acceptance from the council on a RTB application with my mum. The house we are buying is the family home we have lived in for 25 years and so the discount is excellent. The application was in my mothers name as the tenant and mine as a live in non tenant (more than 12 months continuous occupancy).

We are now looking at the mortgage part and would like to apply for the mortgage in just my name so we can apply for 25 year mortgages as with my mum on it would be 12 or 13 year maximum due to her age.

So my question is can I get a single applicant mortgage for a joint RTB application?

Thanks in advance for any advice.

Pepp

Senior_Paper_Monitor

No you can't - if anyone is on the offer (section 125) they must be on the mortgage (and v.v).


There are now a very limited number of lenders who will do right to buy with party over 70/75 - three have ceased this in the last month.

pepp77

Thanks, I thought that would be the case. Annoying but understandable.

Makes the monthly payments that much higher

dimbo61

To protect yourself and mum consider a 3/5 year fix !
Rates are only going one way UP
If you try to sell within 5 years you have to pay the RTB discount back.
Read all the paperwork relating to the RTB very careful.
You and Mum will be responsible for all repairs ( does it need a new roof, kitchen, bathroom or rewire ????? )
Maybe speak to a broker who may find lenders willing to lend up to 75

pepp77

Hi Dimbo

Thanks for the reply. I spoke to London and Country mortgages as recommended on this site today and they were very helpful.

They are looking at a provider who does a joint mortgage based on one applications finances so we can look for a 25 year mortgage based on just my finances which is perfect.

As for the house we have lived there 27 years, so know all its good and bad bits and the only bad bit really was the roof which was replaced 6 months ago along with all the other council house roofs in the area.

We had new central heating and radiators 20 months ago, new windows, new kitchen, new bathroom suite all inside the last 5-10 years and as it ha been our family home for that long has been kept decorated inside so realistically there is nothing that needs doing (except maybe a 6ft deep piece of rubbish patio in the rear garden to redo).

We know the house is basically sound and for the price we have been offered it as is a bargain!

Fingers crossed lc comes through for us.

AngelOfTheNorth

On a similar point, does anyone have experience of purchasing their home under right to buy/acquire and using the discount as part of a deposit? My husband and I will have right to acquire soon and our home is worth about 80-90k. Our discount will be 10k. We have a 10% deposit saved already but obviously would potentially get a better rate if the discount were also considered part of the equity. I know some mortgage providers have offered this in the past, but not sure if it's still done now. We have a decent credit rating and the amount borrowed would be about twice our combined salary so I think we would be seen as low risk, if that makes a difference.

Senior_Paper_Monitor

Not all RTB lenders accept RTA discount within the deposit but many do.

AngelOfTheNorth

Good to know. It's not essential, but would be good if we could get one that did!

pepp77

Nationwide, Woolwich and Halifax definitely do.


I ended up applying to the Woolwich.

AngelOfTheNorth

May I ask if you were successful, and what rate, LTV etc were offered if so? We were hoping for a reasonably competitive rate.

pepp77

My forms were only submitted late on Thursday so still waiting to hear back. My RTB discount is rather good so the LTV is 60%. I opted for a 5 year fixed at 3.39% as I wanted fixed costs during the claw back period just in case the worst happened.