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Mortgage or Loan

Acestu
Acestu Posts: 3 Newbie
in Mortgages & endowments
Hi Martin
I have been living in my flat for 25 years paying rent, so recently I decided to fill in the right to buy form, after receiving the offer my landlord (social Housing) have given me £52,500 off the value of the property, leaving a balance of £22.500, in the mine field of mortgages and loans could you possibly advise me what my possabilities are please, my rent is currently £344 per month

regards
Stuart

Comments

  • FtbDreaming
    FtbDreaming Posts: 1,128 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    Have you got any savings? £22k may be too small for a mortgage but a loan of £22k may be too big unless you have a decent income.
    Mortgage started August 2020 £69,700
    Mortgage ends Aug 2050 MFW: Aug 2027 
    Current Balance: £58,678
    MFW2020 #156 £723.13
    MFW2021 #26 £1184.71
    MFW2022 #11 £197.87
    MFW2023 £785
    MFW 2024 £528.15

    Determined to make it! 
  • TomCollier
    TomCollier Posts: 7 Forumite
    ftbdreaming is correct. Some lenders will have a minimum advance of £25,000 however there are plenty that can accept right-to-buy's without a minimum loan size.

    A mortgage is going to absolutely be the cheapest way to secure the borrowing.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Acestu
    Acestu Posts: 3 Newbie
    Hi,
    Unfortunately I have no savings, and I earn £22K, I have had a few loans and paid them off with no hasstle, does this mean that I have no chance of buying the flat ?

    thanks
    Stuart
  • TomCollier
    TomCollier Posts: 7 Forumite
    You don't need a deposit on a right-to-buy. the discount is your deposit. You won't pay SDLT either so the only costs you should budget for are the legal fees and broker fee. The mortgage will most certainly be fee free given it will be small. Legal fees will be around £600-£800 and Brokers range from Free to around £500.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Acestu
    Acestu Posts: 3 Newbie
    Hi Tom,
    Thanks for the info, are there people who specialise in right to buy mortgages or is there anyone i should try first ?

    Thanks again
    Stuart
  • csgohan4
    csgohan4 Posts: 10,602 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Acestu wrote: »
    Hi Tom,
    Thanks for the info, are there people who specialise in right to buy mortgages or is there anyone i should try first ?

    Thanks again
    Stuart



    OP be sure you know what your getting into with RTB, will you only be the leaseholder?


    Commonly the freeholder can saddle you with large repairs and it won't be cheap, nor maintaining your own house with prices of boilers and roof repairs e.t.c not cheap


    https://forums.moneysavingexpert.com/discussion/5856039/service-charge-being-billed-for-5000-major-works


    https://forums.moneysavingexpert.com/discussion/5789909/new-roof


    https://forums.moneysavingexpert.com/discussion/6003024/right-to-buy-flat-warning
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
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