Buying a council house

Misteek

So been in the house for 4 years. I believe i get a 35percent off according to my neighbours to buy it.

Would i need to get a desposit together? Or would the 35 percent discount going to account for the desposit ?

Also would standard banks give a mortgage ? Or will i need to go to a special company? The house is 100k. I earn 22k.

fairyclairethehare

Some banks will (Natwest) accept the discount as deposit others won't (Barclays), but that may have changed given the current climate??
Best to speak to a broker for the best deal, you'll need money set aside for the legal costs.
Is the £100k before or after the discount?

Misteek

fairyclairethehare said:

Some banks will (Natwest) accept the discount as deposit others won't (Barclays), but that may have changed given the current climate??
Best to speak to a broker for the best deal, you'll need money set aside for the legal costs.
Is the £100k before or after the discount?

100k is the actual value of the house . The full amount.

What kind of deposit will i need  to pay?

thaddy

Halifax and Nationwide can also take the discount as a deposit so you just have to pick a product that suits their criteria at the time (based on affordability and credit rating). Some lenders charge for their mortgage valuations and the legal costs should not be more than £2000 for that property price. 

Misteek

thaddy said:

Halifax and Nationwide can also take the discount as a deposit so you just have to pick a product that suits their criteria at the time (based on affordability and credit rating). Some lenders charge for their mortgage valuations and the legal costs should not be more than £2000 for that property price. 

Thanks so if i was going with a bank. Some lenders can pay for valuations and others won't.  What other costs should i take into account ?

thaddy

Misteek said:

thaddy said:

Halifax and Nationwide can also take the discount as a deposit so you just have to pick a product that suits their criteria at the time (based on affordability and credit rating). Some lenders charge for their mortgage valuations and the legal costs should not be more than £2000 for that property price. 

Thanks so if i was going with a bank. Some lenders can pay for valuations and others won't.  What other costs should i take into account ?

The only other costs I can think of would be for a mortgage broker but you get some that don't charge upfront and for your own home survey if you need one. If its a leasehold property there may also be a monthly service charge and annual ground rent but that's usually for flats.

Misteek

I thought there were legal costs etc as well.

My underatanding so far for costs so far is:
1 Broker fee if i go down that route ? Is there an advantage going through a broker .

2 Valuation fee
3 legal fees ... what does these entail and do i need to find lawyers for this ?

MovingForwards

1. A broker knows various lenders criteria and will place you with the one best suited to your circumstances.

2. Valuation fee and possibly mortgage arrangement fee.

3. Legal fees are the costs payable to your solicitors doing to legal work to transfer the property from the name of the seller to yours and everything in between and they handle the money from you / your lender, search fees for various things which could affect the property.
Make sure you get at least 3 quotes from different firms, they also need to be on your mortgage lenders panel of solicitors (lenders approved solicitors) as they also act on behalf of the lender.

https://www.gov.uk/government/publications/how-to-buy-a-home/how-to-buy

MalMonroe

Hi, I'm also considering doing this. There's some helpful info here https://www.gov.uk/right-to-buy-buying-your-council-home/discounts  and there should be some information about it on your own council's website, too.