mortgage rip off

What's "m5 steel framed construction" and why is it problematic? And if it is problematic, are you sure you want to buy? Why not remain a tenant until you sort out your debts?

we need to buy now because i'm 42 years old and we are getting the council house with a 47% reduction. it's now worth £60000 but we are buying it for £20000, it was valued by the council 18 months ago at £38000 so we are getting a good deal, just not from the mortgage company

The lender appears to be unkeen to lend (at decent rates) for two reasons, one being your tainted credit, the other the non-standard construction. If they view the non-standard construction as dodgy, then so will all lenders in the future, which means that if ever you want to re-sell, you may have difficulty doing so, because other buyers will have the same trouble then as you now. Even if their credit is better, there's still the "dodgy" construction in the way of them getting a good-deal loan.

Therefore I would caution against the possibility that you may be deluding yourself about it really being worth £60k.

Also, what has your age to do with it? Does the council deal expire on your next birthday? Or is it a macho thing that you think if you don't own you own pad by a certain age you deem yourself a failure?

How much is your rent and how does it compare to the mortgage payments?

halifax, however because of our credit problems we couldn't, there are 7 properties in our square and 4 of them are bought, there are quite a lot bought up and down the street, a two bedroomed 100 yards up the street sold 3 months ago for £60000 and ours is a three bedroomed house. as far as my age goes, we want to buy the property over 25 years now if i'm 42 now and didn't do it now i would be well passed retiement age by the time the mortgage was paid. we are getting extra money to pay off all our debts, so instead of just getting £20000 we are infact getting £37000 but this includes their fees of £1500 and it is costing us £355 per month, however all our debts will be clear so we don't have to pay them any more out of our wages. our monthly rent at the moment is £215, so we will be slightly better off and clear of debt apart from the mortgage of course.

That's not generally a problem. People get mortgage loans even when they're already retired. So long as they can afford at least the interest payments, lenders aren't much bothered.

But you have a better reason than age to go for it as soon as possible, namely the other debts, which it's best to clear as soon as possible.

Understood. Your credit record will take a few years to recover, so you'll probably be stuck on the "rip-off" interest rate for a bit (at least 3 years, I'd guess). But after that, you should be able to remortgage back to a more reasonable rate (with Halifax?), which will either mean your payments will go down, or, better still, you should keep them as high as possible, commensurate with what you can afford, so that the loan will be paid off faster.

Most (all?) credit repair mortgages have early redemption penalties - usually 3 years. The lender(s) want to maximise their profit.

Well, that's OK then, if the penalty period roughly matches the period over the course of which the credit repairs itself.

Also, IIRC, RTB mortgages usually have a 3 year lock-in for maximum discount?

It's nothing to do with the mortgage lender. The council will put in a legal clause that you have to repay the discount, on a sliding scale, up to five years from purchase. this is what happened when my mother bought her hosue many years ago. This stops instant profiteering.

You also used to be able to lock in the offer price by paying a small annual fee. Ours was valid for two or three years I think, then we paid 100 to extend it for two more years. We then bought it. good value with 60% discount, a London house for 18.5k !!

John

I was referring to the councils rather than the lenders.

In message , Doug Ramage writes

Are you sure?

It's a few years since I did an RTB, but, IIRC, the council did usually insert such a clause.

Are you saying that's no longer the case, John?

Surely the council's interest is to forbid a sale within a certain number of years (or demand part-return of the discount). But they surely have no interest in locking the purchaser into a particular lender. Why should they be prevented from remortgaging during the sale moratorium period?

This is what you appear to have suggested above.

Ah, that's because the word "mortgages" inserted itself without my intervention. :)

I know, I know. The heat. May I recommend a holiday in Alaska?

Alaska sounds good at the moment. :)

Have you looked into the Rent to Mortgage scheme, they should be OK with the property, just your credit which may cause problems.

Regards NWMA

construction,

This is some joke? why would you buy a house that the council thinks is so good, it plans to demolish? If you buy it, the council will not replace it for you, it's yours for good.

Can you give me the address, I'd love to have a guaranteed 100% profit in two years!