any chance at all?

benjarno

Hi we currently rent a 3 bed terraced maisonette from the council and have applied for the right to buy.
So here's a few sums :

The market value of house has been priced at £352,000
we get full discount of £77,900
so would need mortgage of £274,100

I'm am nearly 40 years old with gross wages of around £25,000
my partner is 44 years old with gross wages of around £10,500

We have not got any deposit money, would we even be considered because my sums tell me that I would probably only be offered half the money we need.
I am basing this on a 30 year mortgage.

Thanks in advance.

Oakdene

benjarno wrote: »

Hi we currently rent a 3 bed terraced maisonette from the council and have applied for the right to buy.
So here's a few sums :

The market value of house has been priced at £352,000
we get full discount of £77,900
so would need mortgage of £274,100

I'm am nearly 40 years old with gross wages of around £25,000
my partner is 44 years old with gross wages of around £10,500

We have not got any deposit money, would we even be considered because my sums tell me that I would probably only be offered half the money we need.
I am basing this on a 30 year mortgage.

Thanks in advance.

I'm not sure you would get a 30 year mortgage, as some lenders will only lend up to 65....

ACG

Your incomes are not enough to support the mortgage of that amount (in the eyes of a lender), as a maximum you can get around 5x your income, although most lenders tend to top out at around 4.5x. That would mean £155k to £175k.

I do not thinkyou would get much beyond a 25 year term.

Dont forget, it is not a case of looking at what the rates are today, but what they could be in 5-10-20 years time. When I first started as a broker (only 5 years ago) I remember seeing a halifax product with a rate of 6%.

benjarno

As I thought not a chance....just seems such a waste of a potential 80k discount on a house

csgohan4

benjarno wrote: »

As I thought not a chance....just seems such a waste of a potential 80k discount on a house

A can of worms you have opened for yourself there. Be prepared for some forum rage later

ANDR£W

I'm not an expert but don't some lenders allow the discount on the property to act as the deposit? Or did I dream this ��