Mortgage advice for disabled person with right-to-buy discount off council flat

abcd1111

Please can you advise me if I can obtain a (preferably Interest-only) mortgage to buy my council flat. The details are: 
Purchase price £190K
Right-to-buy discount £85.4K
Age: 48
Income from severe disability £12.3K
Thank you in advance.

dimbo61

Not sure if your looking for a £190,000 mortgage or £190,000-£85,400 so £104,600 but both need a lot more than £12,300 income I am afraid.
Do you get housing benefit to pay towards the rent ?
If you earned £12,300 you might be able to borrow 4.5/5 X that for a mortgage so £61,500 max

dimbo61

Not sure if your looking for a £190,000 mortgage or £190,000-£85,400 so £104,600 but both need a lot more than £12,300 income I am afraid.
Do you get housing benefit to pay towards the rent ?
If you earned £12,300 you might be able to borrow 4.5/5 X that for a mortgage so £61,500 max

MovingForwards

You won't get an IO mortgage on your income.
Answers haven't changed since last asking:
https://forums.moneysavingexpert.com/discussion/5359960/can-someone-purely-on-benefits-get-a-mortage-for-a-council-flat/p1

abcd1111

thanks for help.
currently on HB +  CTB.
loan needed is 105k.
if i let sitting room room out, I could probably get 90£/week, thus increasing my yrly income.
 . 

elsien

You may be getting a huge discount but have you properly thought through all the maintenance costs and what you would do when the end payment is due? 

Tashco

I’m guessing you won’t be able to on your annual money coming in. Me and my husband get £40k a year between us ( not including bonuses/ overtime etc) and are max is £110k DIP. I can’t see you on almost 1/4 of our wage getting more than us. And that’s with no debt what so ever apart from my £10 per month sim only contract . 

Tashco

abcd1111 said:

thanks for help.
currently on HB +  CTB.
loan needed is 105k.
if i let sitting room room out, I could probably get 90£/week, thus increasing my yrly income.
 . 

If you receive HB and CTB your not allowed to let rooms out, also you can’t let a sitting room if your classed as disabled as the home meets the needs of your requirement. I think your best having a meeting with a mortgage broker and seeing your options as you don’t want to get yourself into trouble xx

elsien

Tashco said:

abcd1111 said:

thanks for help.
currently on HB +  CTB.
loan needed is 105k.
if i let sitting room room out, I could probably get 90£/week, thus increasing my yrly income.
 . 

If you receive HB and CTB your not allowed to let rooms out, also you can’t let a sitting room if your classed as disabled as the home meets the needs of your requirement. I think your best having a meeting with a mortgage broker and seeing your options as you don’t want to get yourself into trouble xx

I don’t think that is correct, however it will affect the amounts payable to you. 

csgohan4

lenders go on the now and do not consider Lodgers as income as part of their affordability assessment

You can only borrow general x4.5 of your gross income. Seems a no go I'm afraid

abcd1111

thanks for your advice, all MSE members. looks pretty disappointing for me re:mortgage lending.
cheers anyway!!