Together

Tinatium

My partner has been approved for a right to buy is Council flat in Hackney.

But he has a CCJ, that he paid out 6 months ago (it was near £5000 for his sons private school, as his son is ill and needed special school, ) and was due to unemployment. It will fall away in 17 months, but is settled partially 6 months ago.

He had a Wonga pay loan last Christmas and 1 default for £ 74 with a telephone company a few yaers ago

This and the fact that it is a "Right to buy" mortgage, leaves him apparently only one option with Together (re-branded from Bleinham)

The loan is Variable rate for 25 years, but with option to repay fully or partially at any time for a £ 150 fee. So that is all ok, as he is willing to pay the 6.46% interest now (for his sins) and then remortgage in 2 years, when all the stuff goes off his file. We both have memberships with the big Credit agencies to manage our credit files.

Questions is, the illustration says, that he can NOT transfer this deal to another property or Lender ?

His specialist mortgage broker, claims; that is no problem ( he gets a huge fee though, so not very impartial.

What is the difference between a transfer of a loan and paying off the loan via a remortgage.

We do not want to be tied into some crazy deal ? And together has a terrible reputation (though, that is for people who fall behind)

Yes, we know that we could wait with buying the flat till his file looks better, but the flat has gone up £ 12.000 in the last 3 month, that area is going crazy, so we want to move ahead now if possible.

Any advice ?

MortgageMamma

1. a lot of lenders won't touch you if you've had a payday loan within the last 12 months

2, you don't say how much is owed on the CCJ and when it will be fully repaid? A recent partly satisfied CCJ isn't helping things I don't think there will be a lender who will accept that.

3, do you have a deposit saved up as that could be used to repay the CCJ

I do sympathise as I have a disabled son who attends a specialist school, but I can't help feeling you are trying to do too much too soon.

The best tips I can give you is get every aspect of your finances in order, stay out of your overdrafts, avoid payday loans and pay off any debts and then do this. You could also speak with another specialist broker to see if there is another way around it - I don't deal with right to buys but going off what you have said I'm not hopeful for you.

mrginge

There is no difference.
You can't transfer the loan. You pay it off either by remortgaging with a different lender, or by you sellling the property, paying the mortgage off with the proceeds and then getting a new mortgage on a new property.

Tinatium

Sorry to be "dumb", but we can't transfer but we can pay it off ?

Surely that in itself is a difference, what happens when you transfer a mortgage , as opposed to paying it off by re-mortgaging ?

Tinatium

The CCJ is closed, they accepted a partial offer. So nothing is owed, that has been written into credit reports as settled.

We have no deposit, but are getting 100 K discount, so LTV is really really low, thats not a problem at all.

mrginge

Tinatium wrote: »

Sorry to be "dumb", but we can't transfer but we can pay it off ?

Surely that in itself is a difference, what happens when you transfer a mortgage , as opposed to paying it off by re-mortgaging ?

There is no such thing as transferring a mortgage.
If you move house or remortgage, then the old loan has to be paid off and a new one started.

David_White

Be prepared for a full scale interrogation with this application.

Affordability is huge for Together so your partner doesn't want to be using their overdraft or anything of that nature in the build up to applying.

Thrugelmir

Tinatium wrote: »

The CCJ is closed, they accepted a partial offer. So nothing is owed, that has been written into credit reports as settled.

In full or partial though?

Tinatium

Its closed we made an offer and they CLOSED the case. It will state setteld paid in partial

Dave_Ham

Right to buy scheme and adverse credit do not mix well and therefore the panel of lenders is limited.

Together are likely to have been 3rd or 4th on the likely list, so I hope your broker as explored all of the other potential options first as these will be much more competitively priced.

How much is broker charging you for this application, as you viewed it as expensive?

This is an incredibly time consuming application and underwrite, fraught with unexpected requests but all being well the lender will offer and deliver the funds on the terms provided.