Right to buy Remortgage

mcweasel01

Hi all,

I'm looking for some advice regarding remortgaging on right to buy and hoping someone can point me in the right direction.

I've applied to purchase my home under the right to buy scheme. The purchase price provided is £75k which sits well within budget.
However, I'm wanting to raise additional funds for improvements (toilet upstairs, new kitchen etc.)
I have spoken with a couple of brokers and one can offer £80k now fixed for 2 years, the other says we can't borrow more than the £75k but they can fix for 2 years and they dont understand how the other broker is able to offer £80k.

The £75k mortgage provides the best deal all round (no broker fees, mortgage cash back & low repayments) but if, as it's within 5 years of purchase we are unable to even remortgage (without adding additional funds) then I need to look at 5 year fixed.

As this is right to buy, and the council have rules, what are the chances of being able to remortgage in 2 years if I go with the 2nd option? We'd only need to borrow upto the £75k again, and be well within the 75% LTV.
I understand interest rates can rise, and we've factored these into our calculations.

Any advice is appreciated

Senior_Paper_Monitor

Not enough information to comment on the £75-80K issue - but borrowing extra at time of purchase is comparatively easy if affordability is met (but you need to be careful about wildly varying requirements for release of the extra funds between lenders) - but remortgaging on right to buy (with 10 year period - in particular within 5) is fairly tricky, with limited choice.


Borrowing extra money at the remortgage further complicates it and limits choice - but it is doable (did one last month in fact) .. the biggest problem is the co-operation (and cost) of getting council agreement (involving deed of postponement) often at the point of application and conveyancing.

mcweasel01

Thanks for that, I think, all things considered we'd probably be best off just taking the £75k mortgage, and trying to fix it for 5 years rather than run the gauntlet of remortgaging in 2 years (either with or without additional funds).
The improvements we need to do can be done on an adhoc basis and save as much as possible.