Mortgages to help buy my family home but when not on the Right to Buy papers
The Local Authority does not want everyone to buy their council home. What’s more barmy is even when you are living there you can be excluded. Furthermore as an earner within the household the council calls on you to contribute towards costs, admitting your vital role, but can still refuse to add you on the Right to Buy papers. I can only surmise their rationale is to protect them in case you break ranks and jump on the housing list in your own right! Like that’s a sin anyway! Rant over, the good news is I can help you get a mortgage even if you name is not mentioned on the papers provided you live in the property.
That’s right provided at least one person who is to be a mortgage applicant has their name on the Section 125 Right to Buy offer then away we go. This has major benefits as it can make the mortgage affordable as can factor your income into the mortgage affordability assessment.
The best of all it is it’s a well-kept secret as normally Lenders shy away from offering mortgages to applicants who are not listed on the RTB papers so the chances are by reading this you can one up on your neighbours. The only proviso is it must be a house. Flats or maisonettes do not sadly qualify.
Example Product 1 – Right to Buy Mortgage for Council Property (Residential)
The total amount you must pay back, including the amount borrowed is £263,276.28
Features: Not all the applicants must be on the Right to Buy papers. No deposit required (lower mortgage rates available if you put in a 10% deposit). Right to Buy houses only.
|Type and initial benefit period||Fixed for 2 years|
|Minimum deposit / equity:||25% but can take 100% of the discount|
|Telegraphic transfer / CHAPS fee||£35|
|Early repayment charge||3/2% of the amount repaid in the fixed period|
For more information on a Right to Buy Mortgage for Council Property please call complete the enquiry form on this page or call the number below.
Any property used as security, which may include your home. may be repossessed if you do not keep up repayments on your mortgage
Residential and Buy to Let Mortgages
Rates current as at 24/03/17 . The overall cost for comparison is based on a purchase price of £300,000 over a 25 year term. The Right-to-Buy example is based on a discounted purchase price of £150,000. Repayment for Residential and Interest only for Buy-to-let (unless otherwise specified). Eligibilty will depend on your own personal circumstances.
KEY – ERC = Main early repayment charge.
The purpose of this web is for information only and is based on a fictitious illustrative scenario. It does not constitute a Mortgage Offer in any way.
It is essential that you seek independent mortgage advice as a suitable product will be based on your own individual circumstances. An interest rate should not be read in isolation, and you should refer to your personal key facts illustration and Mortgage Offers for full terms and conditions. If anything is unclear it should be discussed fully with both your mortgage and legal advisors before entering into a mortgage contract with the lender.
The information contained herein is based on research through the Trigold (IRESS UK) sourcing system. When first published to this site the data is normally 24 hours behind real time, and may or may not still be available.
A first charge over your property is required as security for the loan.
The formal mortgage offer of an advance will be subject to a valuation and other satisfactory references.
Niche Advice provides appropriate mortgage advice for applicants wishing to purchase their council home, including mortgages whereby all applicants aren’t on the Right to Buy papers. To find out if you qualify select the Contact tab on this website and complete our online enquiry. Alternatively, please call on T: 020 7993 2044 and we will be delighted to help you buy your council home.
Author: Payam Azadi
Payam Azadi is a partner at Niche Advice who are whole of the market Independent Finance Brokers In London. His role is very much focused on Property financing both on residential and commercial lines.