How likely to get a mortgage? complex situation

SophMa1

So basically we currently live in a council house - been here for many years. After clearing debts etc we have saved enough to buy our property with RTB we will be paying cash for our house (with a big discount). The plan would be to keep our current house and rent it & we are hoping to obtain a mortgage on a new home for us (i have fell in love with the kind of house we want at 180k). 

So, the issue is my credit history!! Had a bad couple of months in 2018 and i am paying the price now. I have 2 defaults both 2-300 2018 and 2 CCJs (1 settled 700 mobile phone contract and 1 unsettled CCJ 2100). We both have good stable jobs with a joint income of 84k plus overtime/bonus. So my question would be, how likely is it we could obtain a mortgage  and given that we will own a property would it be possible to use any of the equity from our RTB property towards a deposit for second property? 

Caz3121

Unless this article is out of date....
"RTB dictates that a buyer has to live in the home as their main residence for a minimum of five years before they can sell it without losing and having to repay the initial Right to Buy discount, or begin to rent it out."
"Getting a buy-to-let mortgage for a council home bought through Right to Buy isn’t possible within the first 5 years of you buying your home."
(relevant assuming you would be wanting to release equity from the property for next purchase)
https://www.themortgagehut.co.uk/expert-articles/buy-to-let-mortgages/135/btl-mortgage-on-a-right-to-buy-property
5 years down the line your credit issues would have dropped off your credit file.
If you have enough money to purchase cash and a high income, why not settle the £2,100 CCJ?

Nnenne1

SophMa1 said:

So basically we currently live in a council house - been here for many years. After clearing debts etc we have saved enough to buy our property with RTB we will be paying cash for our house (with a big discount). The plan would be to keep our current house and rent it & we are hoping to obtain a mortgage on a new home for us (i have fell in love with the kind of house we want at 180k). 

So, the issue is my credit history!! Had a bad couple of months in 2018 and i am paying the price now. I have 2 defaults both 2-300 2018 and 2 CCJs (1 settled 700 mobile phone contract and 1 unsettled CCJ 2100). We both have good stable jobs with a joint income of 84k plus overtime/bonus. So my question would be, how likely is it we could obtain a mortgage  and given that we will own a property would it be possible to use any of the equity from our RTB property towards a deposit for second property? 

You can definitely let it out straight away and won’t lose discount. What mortgage you get is up to you, nothing in the legislation stopping you from letting it, leaving it empty etc. Only caveat is that’ if you sell before 5 years, you pay back some of the discount and you must offer it back to the council, if you sell within 10 years. 

lonibra

To buy a right to buy, you need a right to buy mortgage and these mortgages don't allow you to let. It is all well and good to say "use whatever mortgage you want to" but someone had to lend don't they.

SophMa1

We are planning to pay cash for our RTB then will start savings again for the dream house. Settle CCJs & we will need a mortgage for the dream house.