Should I pull out of RTB due to Corona and Economy?

sho_me_da_money

Hi Guys,
After months and back and forth and having a lender secured, I'm not at a point of Exchange and Complete. I have asked my solicitor to pause given the current Corona climate . This is a right to buy.

If you were in my shoes is it pull out? Is it best to negotiate down the price with the housing association? Is that even possible....

When I secured the mortgage with Barclays it was done at around 1.5% at 5 year fixed and the BoE base rate was 0.75%>

Grateful for your thoughts. Thanks 

Edi81

why would or indeed should the housing association accept less money?
in respect of rates they are actually increasing as lenders are pricing in more bad debts.
I would be considering what your own financial position is, are you in secure (as secure as it can be) employment or are you likely to be impacted by the longer term effects of Covid19?

MobileSaver

sho_me_da_money said:

This is a right to buy. Is it best to negotiate down the price with the housing association?

When this is all over, the government will need to start recouping the money it has spent protecting the economy; many people already think the RTB discounts are far too generous so it is not beyond the realms of possiblity that RTB discounts will be slashed and consequently the price people have to pay will increase...

molerat

IMHO the only thing that needs looking at again is your personal situation.  Nothing else has really changed.

Norman_Castle

The valuation is based on the date the application was recieved.

FtbDreaming

I’m part way through a right to Acquire... basically the same as rtb with less discount. I don't think you will get very far trying to get a further reduction in price and the rent you pay whilst you wait for the reassessment will probably be greater than any saving. 

I aim to continue with my purchase as ive already paid out £1500 on survey, broker etc. I did put in for it 2 years ago and pulled out due to change in circumstances, i now wish i had just gone through with it the first time as i have paid £12000 in rent since then which would have been better spent on mortgage. 

sho_me_da_money

Thanks for all the responses. Going to proceed and see what happens.
Curiously was after two things:
1. Should I be asking my broker to negotiate a better deal with the lender (Barcalys). When Barclays accepted the BoE base rate was at 0.75. Worth reviewing?

2. Whilst this is all going on im paying rent, which is dead money when it can be contributing towards the mortgage. Is there any COVID relief available for renters where they get a break on payments?

Comms69

1.5% is pretty reasonable. Barclays back office staff are based in India (under severe lockdown) - take from that what you will

csgohan4

the question is can you find a better one with barclays and risk delaying your purchase due to a new application? Rates have been going up due to the lenders risk appetite at present. They have pulled all the Trackers and most products less than 60% LTV. 

sho_me_da_money

Thats true. I just checked and the rate i got for 5 years fixed was 1.69%
Im wondering if Barclays would allow me to have a better product without too much delay. 

csgohan4

sho_me_da_money said:

Thats true. I just checked and the rate i got for 5 years fixed was 1.69%
Im wondering if Barclays would allow me to have a better product without too much delay. 

it will be assessed like any other application, affordability