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Right To Buy - HELP!

My friend is looking to buy his mum's council house, which get maximum RTB discount.
He has applied for a mortgage in principle through Nationwide, and has passed his credit check successfully and got a conditional offer.
It now appears from speaking to the council that to get the maximum RTB discount his mum must be a joint purchaser as she is currently the named as main tenant on the tenancy agreement.
His mother has a bad credit rating. That being the case can my friend continue to progress with the mortgage with Nationwide alone, even though his mother will have to be named on the deeds?

I'd welcome any advice here. Thank you
«1

Comments

  • csgohan4
    csgohan4 Posts: 10,614
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    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • Pixie5740
    Pixie5740 Posts: 14,515
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    mea3583 wrote: »
    My friend is looking to buy his mum's council house, which get maximum RTB discount.
    He has applied for a mortgage in principle through Nationwide, and has passed his credit check successfully and got a conditional offer.
    It now appears from speaking to the council that to get the maximum RTB discount his mum must be a joint purchaser as she is currently the named as main tenant on the tenancy agreement.
    His mother has a bad credit rating. That being the case can my friend continue to progress with the mortgage with Nationwide alone, even though his mother will have to be named on the deeds?

    I'd welcome any advice here. Thank you

    I have you've got your tin hat on.

    The mother is the tenant, she is the one with the Right to Buy and it's her discount that's being used towards the deposit for the mortgage.

    As far as I know Nationwide don't offer sole borrower joint owner mortgages but your friend should verify that with Nationwide.
  • Thanks again ... I guess the only way forward is to look for a 'bad credit' mortgage now for them both, which is a shame as his credit rating is high
  • Ed-1
    Ed-1 Posts: 4,039
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    Pixie5740 wrote: »
    I have you've got your tin hat on.

    The mother is the tenant, she is the one with the Right to Buy and it's her discount that's being used towards the deposit for the mortgage.

    As far as I know Nationwide don't offer sole borrower joint owner mortgages but your friend should verify that with Nationwide.

    Wrong way round - it would be sole owner, joint borrower if they did.
  • As a family member, he can join her in the RTB, so would be a joint owner, but looking for sole mortgage.... As I said guess only option is to go to a bad credit mortgage company? Shame
  • Pixie5740
    Pixie5740 Posts: 14,515
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    Ed-1 wrote: »
    Wrong way round - it would be sole owner, joint borrower if they did.

    Really? I thought the OP's friend was looking for 1 on the mortgage and 2 on the deeds.
  • da_rule
    da_rule Posts: 3,618
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    mea3583 wrote: »
    As a family member, he can join her in the RTB, so would be a joint owner, but looking for sole mortgage.... As I said guess only option is to go to a bad credit mortgage company? Shame

    I assume he still lives at home with his mum then?
  • Ed-1
    Ed-1 Posts: 4,039
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    Pixie5740 wrote: »
    Really? I thought the OP's friend was looking for 1 on the mortgage and 2 on the deeds.

    They are. The point I was making was no lender is going to entertain this idea. If they wanted to repossess the property, they need to have a contract with all owners with the right to live there.

    Some lenders offer sole proprietor (owner), joint borrower however.
  • pinkshoes
    pinkshoes Posts: 20,695
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    mea3583 wrote: »
    As a family member, he can join her in the RTB, so would be a joint owner, but looking for sole mortgage.... As I said guess only option is to go to a bad credit mortgage company? Shame

    Why does the mum want to buy it?

    She has a guaranteed low rent and secure home for LIFE with no maintenance bills.

    It doesn't make sense to give that up, particularly as she is clearly not good with money if her credit rating is so bad.

    You should advise your friend that this is a really bad decision, and what is best for his mum is to keep renting her council house as she currently does. She has nothing to gain from buying it, but everything to lose.
    Should've = Should HAVE (not 'of')
    Would've = Would HAVE (not 'of')

    No, I am not perfect, but yes I do judge people on their use of basic English language. If you didn't know the above, then learn it! (If English is your second language, then you are forgiven!)
  • Where will your friend live once the house has been bought and her son no doubt sells it
    An answer isn't spam just because you don't like it......
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