RTB question

Sammyc77

Hoping for a little advice. My wife and I are looking to use RTB to buy our council house. We have been here for around 20 years so would have quite a large discount. It's a PRC build, we last had it valued at £35000 (inc. discount) but this was many years ago and we didn't take it any further at the time. We are aware that we would need to get some work done on it (costing approx £35000) and that some mortgage lenders will lend against the cost of the work (not quite sure how this works, I'm told Halifax are able to do this). So potentially we think with current prices in the area it would be £90000 at the most for house and repair work.

I earn £32500 and my wife £34500 p/a. We have debts of £14000 each which we are currently in process of reducing by £1000 per month. No late payments, defaults etc, and our credit utilisation is under 50%. Far from an ideal situation which we are trying to resolve.

Obviously very little info, but on the face of it, is it worth applying for a mortgage with the level of debt we have, or will we get laughed out of the bank/building society? Am I correct in thinking a mortgage broker would be our best bet?

Caz3121

there are quite a few posts if you search 'rtb additional borrowing'
https://forums.moneysavingexpert.com/discussion/4790869/borrowing-extra
https://forums.moneysavingexpert.com/discussion/5453689/halifax-rtb-mortage-addtional-borrowing
the equity is not yours currently, it is the council/HAs which should reduce each year up till 5 years when the equity will be yours

Sammyc77

Thanks for the answer and links Caz3121 - I think they apply to additional borrowing e.g. for home improvements, where as in my case the house is considered defective and requires the work so that a PRC certificate can be awarded, without that I believe it's almost impossible to get a mortgage on it.