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  • FIRST POST
    • sho_me_da_money
    • By sho_me_da_money 16th Apr 19, 5:22 AM
    • 1,397Posts
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    sho_me_da_money
    Right to Buy Mortgage
    • #1
    • 16th Apr 19, 5:22 AM
    Right to Buy Mortgage 16th Apr 19 at 5:22 AM
    Hi All,

    The RTB states that my mum (tenant) can buy her council home with up to three family members providing they have lived in the same residence for a period of 12 months. I am the only one who has lived with my mum for the past 4 years. Just to confirm, I am not a tenant. My mum is the tenant and I am the 'Family Member' that is looking to share the RTB.

    My question comes with respect to the Mortgage. My mum doesn't have a job and lives off very few benefits therefore I doubt any lender would offer her a Mortgage. I on the other hand am in full time employment and have never purchased a property before.

    Am I eligible as a family member to take out a mortgage in this instance? I know my name will not be on the deeds etc but curious if I can go to a lender as a 'family Member' on the RTB application and get a mortgage subject to credit checks etc?

    Thank you
    A pessimist sees the difficulty in every opportunity.
    An optimist sees the opportunity in every difficulty.

    One
    Love
Page 1
    • csgohan4
    • By csgohan4 16th Apr 19, 6:26 AM
    • 5,801 Posts
    • 3,809 Thanks
    csgohan4
    • #2
    • 16th Apr 19, 6:26 AM
    • #2
    • 16th Apr 19, 6:26 AM
    Why do you want to do RTB when your mother has a secured tenancy for life? Are you wanting some inheritance at the tax payers expense?



    More importantly what does your mother think and does she know the ramifications of RTB?

    A lot of RTB your not the freeholder and the HA/Council is, there comes expensive repair costs. Can your mother afford a new boiler/roof??


    https://forums.moneysavingexpert.com/showthread.php?t=5856039


    https://forums.moneysavingexpert.com/showthread.php?t=5789909
    Last edited by csgohan4; 16-04-2019 at 6:29 AM.
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
    • sho_me_da_money
    • By sho_me_da_money 16th Apr 19, 6:40 AM
    • 1,397 Posts
    • 411 Thanks
    sho_me_da_money
    • #3
    • 16th Apr 19, 6:40 AM
    • #3
    • 16th Apr 19, 6:40 AM
    My mother would like me to buy the house and I have agreed. We know the full details - benefits will stop, repairs will be undertaken by my own funds, council tax and rent would be paid by me etc. We know the ramifications and would like to go ahead. I will be taking care of her financially as I live in the same house and have zero intention of leaving ever.

    I appreciate your response but i would be grateful if someone can advise if I as the 'Family Member' on the RTB can qualify for a mortgage with my mum as the acting Tenant? Would the lender provide me the funds even though my name is not on the deeds?

    Perhaps the best thing for me to do is call a Mortgage Advisor who has dealt with RTB applications.
    Last edited by sho_me_da_money; 16-04-2019 at 6:45 AM.
    A pessimist sees the difficulty in every opportunity.
    An optimist sees the opportunity in every difficulty.

    One
    Love
    • ACG
    • By ACG 16th Apr 19, 7:26 AM
    • 18,740 Posts
    • 10,349 Thanks
    ACG
    • #4
    • 16th Apr 19, 7:26 AM
    • #4
    • 16th Apr 19, 7:26 AM
    Your mum would need to go on the mortgage with you as far as I am aware.
    You would both go on the deeds.

    Her age can be ignored with some lenders if her income is not needed.

    It probably is one for a broker if your mum is over 50ish and you need a term which would go beyond her 70th birthday.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Exodi
    • By Exodi 16th Apr 19, 8:37 AM
    • 494 Posts
    • 612 Thanks
    Exodi
    • #5
    • 16th Apr 19, 8:37 AM
    • #5
    • 16th Apr 19, 8:37 AM
    My mother would like me to buy the house and I have agreed. We know the full details - benefits will stop, repairs will be undertaken by my own funds, council tax and rent would be paid by me etc. We know the ramifications and would like to go ahead. I will be taking care of her financially as I live in the same house and have zero intention of leaving ever.
    Originally posted by sho_me_da_money
    I will be taking care of her financially as I live in the same house and have zero intention of leaving ever.
    Originally posted by sho_me_da_money
    have zero intention of leaving ever.
    Originally posted by sho_me_da_money
    ever
    Originally posted by sho_me_da_money
    Since you seem to be able to see into the future, care to let us know tomorrows lottery numbers and if the UK ever leaves the EU?

    These threads always go the same way. If you ever meet a partner and decide to get your own house and have children, your mum is royally stuffed. You lose your job? your mum is royally stuffed. You fall out with your mum? your mum is royally stuffed. These agreements are always to the benefit of the investor/child and at the detriment of the parent (which is nearly always the case).

    Eurgh can we just cancel this RTB nonsense already?
    Know what you don't
    • ACG
    • By ACG 16th Apr 19, 8:52 AM
    • 18,740 Posts
    • 10,349 Thanks
    ACG
    • #6
    • 16th Apr 19, 8:52 AM
    • #6
    • 16th Apr 19, 8:52 AM
    Since you seem to be able to see into the future, care to let us know tomorrows lottery numbers and if the UK ever leaves the EU?

    These threads always go the same way. If you ever meet a partner and decide to get your own house and have children, your mum is royally stuffed. You lose your job? your mum is royally stuffed. You fall out with your mum? your mum is royally stuffed. These agreements are always to the benefit of the investor/child and at the detriment of the parent (which is nearly always the case).

    Eurgh can we just cancel this RTB nonsense already?
    Originally posted by Exodi
    This is a bit unfair. I know if I took out a RTB Mortgage with my mum, no matter what happened down the line, I would ensure the mortgage was paid for the duration because it is what was agreed, its my mum and if we are looking at purely selfish reasons, I will get it back when she passes (assuming she passes first).

    I am not a massive fan of the RTB scheme either, I am not necessarily against the idea of it, but I think the discount is too much. But that is besides the point, you appear to be tarring everyone with what I can only assume is your moral compass.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Exodi
    • By Exodi 16th Apr 19, 9:14 AM
    • 494 Posts
    • 612 Thanks
    Exodi
    • #7
    • 16th Apr 19, 9:14 AM
    • #7
    • 16th Apr 19, 9:14 AM
    This is a bit unfair. I know if I took out a RTB Mortgage with my mum, no matter what happened down the line, I would ensure the mortgage was paid for the duration because it is what was agreed, its my mum and if we are looking at purely selfish reasons, I will get it back when she passes (assuming she passes first).

    I am not a massive fan of the RTB scheme either, I am not necessarily against the idea of it, but I think the discount is too much. But that is besides the point, you appear to be tarring everyone with what I can only assume is your moral compass.
    Originally posted by ACG
    With all due respect, the road to hell is paved with good intentions. Life is a roller coaster of unforeseeable events and even someone with the best intentions (though I think this is a contradiction as there is no benefit in these arrangements to the original tenant) there's a stark difference between wanting to honour your agreement and being able to.

    Last year my mother and her daughter (my sister) went from being like two peas in a pod to not being able to be in the same room as each other. Imagine if my sister was responsible for 'financing' my mothers life? The mother in the above scenario is entirely at the financial mercy of her child.

    I concede; I do paint everyone with the same brush in these threads but it's because of the fact I've yet to see any compelling benefit for the parent in these arrangements - the only in the fact they get to leave their child an inheritance where they otherwise wouldn't have been able to (I won't get into the morality of the 'source' of this gift...)
    Know what you don't
    • sho_me_da_money
    • By sho_me_da_money 16th Apr 19, 10:24 AM
    • 1,397 Posts
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    sho_me_da_money
    • #8
    • 16th Apr 19, 10:24 AM
    • #8
    • 16th Apr 19, 10:24 AM
    Can my mum go on the mortgage given her low financial circumstances? And who would the lender be reviewing to agree a sum and to whom? Will they review my circumstances and say they are happy to lend me the money?
    A pessimist sees the difficulty in every opportunity.
    An optimist sees the opportunity in every difficulty.

    One
    Love
    • Exodi
    • By Exodi 16th Apr 19, 10:32 AM
    • 494 Posts
    • 612 Thanks
    Exodi
    • #9
    • 16th Apr 19, 10:32 AM
    • #9
    • 16th Apr 19, 10:32 AM
    Can my mum go on the mortgage given her low financial circumstances? And who would the lender be reviewing to agree a sum and to whom? Will they review my circumstances and say they are happy to lend me the money?
    Originally posted by sho_me_da_money
    The lender will require anyone on the deeds is on the mortgage and vise versa. You would both be assessed by the lender and a mortgage provided jointly.
    Know what you don't
    • ACG
    • By ACG 16th Apr 19, 11:51 AM
    • 18,740 Posts
    • 10,349 Thanks
    ACG
    Your mum can go on the mortgage with no income - it needs to pass as a joint application.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • sho_me_da_money
    • By sho_me_da_money 16th Apr 19, 3:18 PM
    • 1,397 Posts
    • 411 Thanks
    sho_me_da_money
    Thank you guys. i appreciate the support.

    I know we live in a wicked world where it is not uncommon to hear stories where one family member cons another one out of X (whatever 'x' might be). Fortunately I was brought up in a very close-knit family that do not let things such as finances come in between us. I 100% unquestionably trust and love my mum and it goes vice-versa.

    Not that its of any business but i recently divorced my wife because she was trying to isolate herself away from my family and was trying her best to pull me away into her "me and you bubble" world. I wasn't brought up that way - we stick together no matter what or cya later.

    Good to know that I don't need to be a tenant and that when it comes to getting the mortgage, we would both be reviewed by the lender. So the process will be:

    1. Complete the RTB with mum as the tenant and me as a named sharer
    2. Wait for approval
    3. Seek a mortgage through a broker
    4. Get solicitors involved.
    5. Bingo?

    I've been paying 500 a month on rent for the past 6 months, which is 3000 of dead money. Time to put the same amount towards something tangible at the end of it.

    Thank you again
    Last edited by sho_me_da_money; 16-04-2019 at 3:23 PM.
    A pessimist sees the difficulty in every opportunity.
    An optimist sees the opportunity in every difficulty.

    One
    Love
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