right to buy help!!

Matty_Robinson

Hi, im currently buying a house with my mom and partner using right to buy, weve been council tenants gor 26 years so we get a good discout, we can buy the house for 40k, but we need to convert it to a 3 bedroom using the loft space, (weve had another baby on the way) were looking at an extra 12 to 15k as we want to knock through the kitchen for extra space, is there any mortgage companies or lenders that would allow us to borrow more than the 40k?

Regards
Matty

Senior_Paper_Monitor

Depends on:

Your incomes, financial liabilities and credit histories

+ the end LTV, the age of the parties concerned etc

... you almost certainly need an experienced broker, preferably one who has specific RTB experience as well. Expect to pay a fee as the commission from a £40K mortgage (c £140) won't get close to covering the time this case is going to absorb.

Matty_Robinson

Combined income between us is 2500 a month, the only thing me and my partner are committed to is car finance, and we all have excellent credit, weve never been turned down for credit if weve applied for it in the past, ive done a credit report and mines came back as 999 on experiran. As to the mortgage if we had it over 25 years, i would be 50 and my partner 45

Senior_Paper_Monitor

.... and your mother (who I assume must be on the application/mortgage/title as primary tenant) ?

Matty_Robinson

She would be 60 and has excellent credit rating too

Caz3121

Matty_Robinson wrote: »

As to the mortgage if we had it over 25 years, i would be 50 and my partner 45

Matty_Robinson wrote: »

She would be 60 and has excellent credit rating too

she will be 60 in 25 years time?

Senior_Paper_Monitor

You would be 50 after a 25 year mortgage and your mum would be 60 ??

Unless I am missing something her:

Your mum is 35

You are 25

Your partner is 20

Matty_Robinson

Sorry wrong number pressed my mom will be 70

Matty_Robinson

Can anyone give advice or recommend on this subject please

csgohan4

Matty_Robinson wrote: »

Can anyone give advice or recommend on this subject please

Paper monitor clearly advised a broker, so probably take his advice, no amount of speculation on an internet forum is going to get you a mortgage. You have to do some work yourself

Mokka

I had a difficult RTB mortgage to get (our flat is in a concrete tower block) and was told it was nearly impossible. in the end we got quite a good deal. There were only 2-3 lenders willing to lend. I had to do a lot of legwork- went to lots of branches and made lots of phonecalls.
The problem is when your situation is a bit out of the ordinary some first-contact staff, who do not have enough experience, just fob you off.

So I was told by First Direct that they won't give a mortgage for RTB because the bank wouldn't have first charge on the property. This is complete hogwash- I've emailed the poorly-informed mortgage adviser a Government leaflet produced to explain the RTB rules to the banks, but she wasn't interested. Unfortunately these people have a lot of discretion and can say no without giving any explanation.

Your situation has a lot of 'alarm bells':

three people on the mortgage
one of these people cannot have 25 year mortgage (which means you cannot get 25 year mortgage)
wife expecting a baby- another mouth to feed and I expect less income for a while
you will be messing with the structure of the house- what if something goes wrong? Its more difficult to insure a house during such works.
some lenders are simply not RTB-friendly

Make some appointments with advisors at banks and see what they say.

You can always get a loan later (I know the interest/terms is not so good, but it is a possibility)