Right to buy advise

Jazziboo

Hi,
I am considering buying my council house via right to buy.  Do I need to apply for the mortgage first, so I have a mortgage in principle (I think its called)? I know that I'll need to submit an RTB application to the council to get the process started with them  but wasnt sure if the mortgage bit would need to be before or after.

Also is it better to go via a mortgage broker?

heston2014

You only apply for mortgage once your application has been accepted by the council and both parties agree to the sale. Submit your RTB application first, council gets the property valued and make you an offer. Once you agree to the sale, that’s when you apply for a mortgage as you will need the property value and discount, to determine how much mortgage you require and which lender accept RTB applications. Unfortunately, RTB isn’t straight forward, I would recommend using a Whole of Market Mortgage Broker as they will have access to lenders who consider RTB applications. Also note, you will be tied to the council for 10 years in terms of offering it back to the council on Right of First Refusal clause, if you decide to sell the property within 10 years. And also repaying back some of the discount if you sell up within 5 years of completing your purchase. So as much as discount seems attractive on RTB, it comes with caveats. Good luck.