Right to buy mortgage at 55

michelleturtle

Hello,

I am 55 and have been living in a council owned semi-detached (although the ownership was passed onto the local housing association quite a few years ago if I remember correctly) for the past 25 years. A friend told me that I would be eligible for the Right to Buy scheme and with the house's approximate value of £150,000 I would get a discount of around 50%.
It never occurred to me to buy the house as I never dreamt I'd have the money to pay for a deposit however, they also mentioned that there is the Help to Buy scheme where you are able to have a 5% deposit and some of the mortgage would be guaranteed by the government. If my sums are correct, on a 20 year mortgage I'd only be on paying 3/4 of what I'm currently paying in rent so it seems worth looking into.
I'd be responsible for any repairs although the house is in a very good state (touch wood) but I can put aside the money saved on rent just in case anything happens.

If the 5% deposit is possible, is it likely that a bank would give me a mortgage considering my age? I live on my own but am on a fairly good wage now and my family said they will help out with getting a deposit together.

Any tips are appreciated!

marliepanda

I think you will find it difficult to get a mortgage to last until you are 75, especially as you say you have not been able to actually save yourself for the deposit. You may be on a 'good wage' now but you are unlikely to stay on that until 75. A good wage should have allowed you to save for your own deposit, but you have been unable to. All things the banks will look into.

I'm not sure of the mortgage guarantee scheme. Do you have more info on this. I know schemes where the govt lend you money for the deposit but that is a loan, not a guarantee.

kingstreet

On RTB you don't need a deposit, you can borrow upto 100% of the discounted purchase price.

Unless you can provide detailed evidence of income in retirement, you won't be able to borrow past 70, so a 14 year term will be about the longest you'll get.

tommybjorn

I completely agree with @marliepanda

theGrinch

there are lenders that will lender beyond 70 or 75, but you need to search and research

Pixie5740

Since the property is now in the hands of a housing association you would need to make sure that you have a Preserved Right to Buy rather than the Right to Buy which is for council tenants as you are no longer a council tenant.

michelleturtle

marliepanda wrote: »

I think you will find it difficult to get a mortgage to last until you are 75, especially as you say you have not been able to actually save yourself for the deposit. You may be on a 'good wage' now but you are unlikely to stay on that until 75. A good wage should have allowed you to save for your own deposit, but you have been unable to. All things the banks will look into.

I'm not sure of the mortgage guarantee scheme. Do you have more info on this. I know schemes where the govt lend you money for the deposit but that is a loan, not a guarantee.

I moved job 2 years ago and am a lot better off financially. On a 15 year mortgage I'd be paying exactly what I'd be paying in rent currently.

This is the mortgage guarantee scheme gov.uk/affordable-home-ownership-schemes/help-to-buy-mortgage-guarantees (can't post links).

theGrinch wrote: »

there are lenders that will lender beyond 70 or 75, but you need to search and research

Thanks, will look into it.

kingstreet wrote: »

On RTB you don't need a deposit, you can borrow upto 100% of the discounted purchase price.

Unless you can provide detailed evidence of income in retirement, you won't be able to borrow past 70, so a 14 year term will be about the longest you'll get.

That's interesting, who do you borrow that amount from? From a 15 year mortgage I would be paying around what I'm currently paying for rent now, so a 14 year term is manageable.

Pixie5740 wrote: »

Since the property is now in the hands of a housing association you would need to make sure that you have a Preserved Right to Buy rather than the Right to Buy which is for council tenants as you are no longer a council tenant.

Thanks, will look into it. My neighbour had RTB when she bought hers recently so I'm presuming this house should be under the same terms.