Mortgage ( right to buy NIGHTMARE)

ocee12

Good Morning All,

Please advise on the following

Council flat purchase on a right to buy basis

Council value £90660
Discount £38000
Price for me £52660

Bargain so far

Broker gets self certified mortgage for me no problems

Their valuers come in and value the place at £85000....Nightmare

Broker wants me to troll estate agents and get comparable prices on actual sales to which they say I am not privy to said information.

Gone back to council to get District Valuers to do recheck their valuation.

Now stuck in the middle.

P.S Can I ask the council to let me buy another vacant property on this so called right to buy policy

All the best everyone and thanks in advance for any help or advise you can offer

ocee12
Kevin

tomstickland

That's only a 5K devaluation, so I don't see what the problem is. Or is the mortgage already at the limit of what you can borrow?

ocee12

The broker says that the interest rate would go up????????

Richard_Webster

If you are borrowing the entire purchase price £52,660, that is only 61.95% of £85,000 so what is the problem?

As far as I understand it on a RTB if a lender lends no more than the purchase price (the £52,660) then if you defaulted it would sell on the open market, take its mortgage loan out, repay any discount to the Council, and then give you the change. The lender gets some priority over the Council's discount, so I can't see what the real problem is in getting a mortgage. The lender should be pretty safe.

Of course you may feel that you are paying too much for the flat, but that is another issue.

silvercar

ocee12 wrote: »

The broker says that the interest rate would go up????????

Maybe the deal the broker found for you is only available for loans less than 60% of the property value.

Seems unusual though, who is the lender?

ocee12

To You, Richard and Tomstickland sorry I have given out duff info.

I have requested an £65000 loan (dont all swear at me)
(forgot to put that bit in)

The lender is Platinum home loans (subsidiary of Brittania B/S) i believe

silvercar

So now you are over 75% of the loan to value, probably the reason if you want a 125% mortgage.

could you reduce your mortgage to 63,750?

poppy10_2

Why have you requested a £65000 mortgage when the purchase price is only £52660???

ocee12

What would £63'750 do?

Only requested that amount to have some remodelling done in the flat

Conrad

Platignum are a sub prime lender, why are you paying such high rates? I bet the broker is charging you a hefty fee also, let me guess - 2%?

UCB are a prime lender that lend above RTB purchase price - mind you your broker will only get 0.45% commission where as Platignum pay about 1.5%, mmmmmmmmm

silvercar

ocee12 wrote: »

What would £63'750 do?

Only requested that amount to have some remodelling done in the flat

63,750 would take your loan to value ratio down to 75%, could make a difference if that is the cut-off for the decent rate your broker has quoted you.