Feels like pressure from broker - Right to Buy

silvercar

Alicebanned, you must have an idea of what your flat is worth. Try houseprices.co.uk to see the price of similar properties or ring an agent and ask what a similar flat would cost (pose as a buyer).

My reservation with ex-LA flats would be if you are stung for high maintenance or area redevelopment charges.

What area are you in? I am in south Herts, if you want an opinion on what your property may be worth.

allan673

2.5k is an absolute joke - tell the broker to stick it

Ian_Griffiths_Halifax

£2500 is about the going rate for rip off companies who specialise in Right to Buys. It's leeches like these who need closing down.

Any broker could arrange this or a future mortgage for you and a fraction of that price.

I saw a client last week who used a broker who employed people to knock on doors to encourage people to buy. Around 5 years ago she got the house for £11500 after discount. They charged £2800 then!

Two years later, and only 2 years into a 3 year redemption penalty, they remortgaged her and charged her another £2500 on top of her having to pay £1000 penalty.

On the first occasion they charged her £1500 for a lump sum Accident Sickness and Unemployment policy which they added to the mortgage and would no doubt have received around 50% of that as a commission.

I'm helping her to claim against the broker for charging her the second time around as the rules on showing all arrangement fees, including brokers fees, had come in by the time of the second mortgage (after Nov 2004) and there was no mention of a fee in her Mortgage Offer Letter. There was no Key Facts Illustration, and no Initial Disclosure Document advising that there would be a fee.

Beware when using these companies!

Dan_Collins_2

That 2.5k is a joke for a loan of that size! Kick him in to touch!

sho_me_da_money

Hi,

I was in a similar situation but due to my credit report i cacked myself and held off.

I worked with a guy (Mike) who was the Sales Director at the company. He was a Mortgage Advisor from 1979-2000. He left us last year and has gone back to working as part-time advisor.

We live in Manchester and would like to exercise our Right to Buy. The house would be in my mums name but im told i can pay for it as an additional person.

Mike believed he could get me a mortgage right now even with a bad credit report. The problem was, i may be required to pay a slightly higher interest rate.

We both decided it would be best if i cleaned up the report as best i could. I contacted all the lenders, resurrected any "written off" accounts and paid them off in full. My accounts are almost now zero balanced and satisfied.

I have to contact Equifax next week and get the most up to date report and make sure its spick and span. Then ill get my freebie report from Experian and make sure the info reflects (sometimes it can differ). Once i am in receipt of both recent reports, i will go back to Mike.

Mike said he would charge £250.00, which i could choose to pay upfront or even have it added onto the mortgage.

In a way im glad that all this faffing around took place considering that House prices are in the "slumping" stage right now.

Anyways i will keep you posted about what happens.

The only thing im curious about is if my Mum is registered Disabled, does she qualify for anything further tio the discount?

UK007BullDog

Just because you cleaned off your credit record it will still show for years so you will still not be able to get the best deals out there.

Then it also depends on your type of property if lenders want to take it on.

I hope your Mike guy knows what he is doing.

Conrad

A massive fee and Ill bet he will try and slip in a very costly payment protecvtion plan and add the premiums to the loan up front in one lump sum and not advise you there are far cheaper, better options.

This type tend also to complete the insurance application on your behalve as they do not want you diclosing medical history that could mean the policy is declined!

Walk away and find a reputable honest broker - avaoid anyone remotely salesy

sho_me_da_money

UK007BullDog wrote: »

Just because you cleaned off your credit record it will still show for years so you will still not be able to get the best deals out there.

Then it also depends on your type of property if lenders want to take it on.

I hope your Mike guy knows what he is doing.

I'm sure 30 years in the business and having a personal tie with him speaks for itself and his experience.

The bad credit is there and goes back before 2005. It is clear from the report, i am not in the same financial difficulty i was in over 3 years ago. The lenders will see an advantage of knowing that i have satisfied all unsettled balances this year.

When Mike approaches the best dealers, he will be upfront about my situation and produce my recent reports before any credit check goes ahead.

Im in a much better situation now than what i was in with unsettled balances. Although i appreciate your comments, i'm not going to surround myself around negativitiy. I know there is a chance that i may not get the best deal out there but nevertheless i will remain quietly confident and positive about it all.

The mind has to conceive and believe it can be done. Setting yourself up for potential failures can have some mad effects on situations.

Sorry been reading a book and listening to a CD about subconscious thinking.

BrokeRage

I agree - £2,500 is a rip-off. There are plenty of brokers on here who would do Alicebanned a mortgage for little or no fee. Please don't approach me as I am NOT looking for business (I am, unlike many, very busy at the moment). I came across one broker in Sussex who was mail-shotting council areas and putting everyone through igroup, who specialised in adverse credit and paid big commissions for high rate mortgages.

*jobags*

You can't really compare the council offer on your flat with what's in EA windows
When I queried why we were selling our stock so cheaply compared to the local housing market value of other properties on the same estates I was told that the District Valuer has to value the property on the basis that it is tenanted i.e. that it has a sitting tenant and therefore the valuation is always going to be lower than the local market

The valuation is also the value at the date the application was made - not at the date the sale goes through or any other spurious date in the process

Also - you can make any improvements over the intervening time and these cannot be taken into account when it is ultimately valued

I don't think your mums disability will have any impact on the valuation

Sorry - is he charging £2,500 or £250??

Jo