Company director mortgage / Buying council house help!!

[Thetruth123]

Hi All,

so me and hubby are finally after many many years in a financial position to buy our house. However we have some obstacles to overcome

1) he is a company director and he takes a dividend and pays him and me paye under the tax threshold so on paper our income between us around £47,000 a year

2) we both have bad credit everything has been paid off so we do not owe anything!!!! But we can not even get a credit card! So unsure how we can even build it back up

3) can we use the £83,000 discount as the deposit for our mortgage?


4) how do I know how much the council will sell my house too me for? I don’t even know how much I will need to borrow I have an idea but I want to know if it’s even pheasable to do....in theory it is but I know how strict lenders are

it really pisses me off how hard all this feels as all these bleeping love island / reality tv stars seem To be buying up all kinds of big duck off houses all from selling crap to gullible idiots!
Thanks for any help guys

 

[Fizzwhizz2020]

Hi. I wouldn’t think that you’d be able to use the discount towards a deposit, it would just be 10% min of what the value of the house is, so you will need savings for that as well as stamp duty and solicitors fees, survey fees etc. I think the best thing you can do is build you credit back up as mortgage lenders are pretty tough at the moment so they need to see good credit. It can take months of things being paid up for your score to go back up. I’d get that in Oder before you apply for a mortgage. Definitely don’t apply for credit cards etc as that all shows on your credit score when they do a search. Independent Mortgage brokers can usually find the best deals so you could always speak to one as you don’t pay anything. Good luck

 

[BettyCrocker]

Hi All,

so me and hubby are finally after many many years in a financial position to buy our house. However we have some obstacles to overcome


4) how do I know how much the council will sell my house too me for? I don’t even know how much I will need to borrow

Surely you need to find out the cost of buying the house before you can think about anything else?!!!! Just phone the council and ask!!!!

 

[Thetruth123]

I did and they can’t I have to make the full application
Which is so long winded. There is even an appointment with the councils fraud officer to ensure the application is genuine and not a fraudulent application (due to the high level of discount!) !


and houses prices along my row vary greatly!!!

Surely you need to find out the cost of buying the house before you can think about anything else?!!!! Just phone the council and ask!!!!

 

[Clickbait]

@Thetruth123 I’d recommend speaking to your company accountant and the bank you use for the company to get some advice: they have access to the bare facts of your finances and what you can afford.

Also if others in your road/local area have bought their properties (of a similar size) you might get a rough idea of the market value. You can find sold house prices online via Zoopla.

 

[Fizzwhizz2020]

I did and they can’t I have to make the full application
Which is so long winded. There is even an appointment with the councils fraud officer to ensure the application is genuine and not a fraudulent application (due to the high level of discount!) !


and houses prices along my row vary greatly!!!

Maybe speak to a broker and see if you can get a mortgage in principle then you know what you’d be able to afford. Then at least you have an idea based on salary and deposit. In e meantime you could make an application to the council to see what the value is. There’s no point going through the whole mortgage process with all the checks etc, which will further lower your credit score (MIP) is a soft search so has no effect on score. Then at least you know if you can afford it

 

[Lulu Goss]

Do you mean that the council are going to give you money to give up your council property? Or that you’re buying the property you live in now from the council?

 

[Thetruth123]

Yeah so purchase our council home using the right to buy scheme xx

Do you mean that the council are going to give you money to give up your council property? Or that you’re buying the property you live in now from the council?

 

[Pinkblush]

You should google similar houses in your street via zoopla/rightmove which will at least give you a rough idea of property value.

 

[Lulu Goss]

Yeah so purchase our council home using the right to buy scheme xx

Ahh ok. That’s weird that they won’t give you the price upfront, like you said how are you supposed to know if you can do it if they don’t?

I agree with Pinkblush though, you could look at similar properties on your street to get an idea

 

[Giggling Squid]

Your best bet would maybe be to speak to a financial advisor who will have a much better idea of what you’re able to afford, mortgage options, how your current salary and finances would be taken into account and be able to offer advice as to how to improve your financial status if it’s not currently idea for a mortgage. There must be some that specialist in right to buy who would know

 

[Thetruth123]

Thanks ladies xx

 

[Babyyoda88]

We’ve just been given our mortgage in principle and we earn 48000 between us, thought credit would be bad but it actually wasn’t. So please speak to a broker they can help either put your mind at ease (as I was anxious as hell) or they will give the advice you need to go forward. Good luck!! I hope it works out for you guys.

 

[JoeBloggs]

I would speak to a broker first, this will give you and idea of how much you can borrow and therefore what you can afford.

You won’t be able to use the discount and will need a 10-20% deposit.

As you know the discount amount, surely this gives you an idea of the house value? You could ask an estate agent to value it and then take the discount off. It’s would be a rough idea of the value then.

 

[Curtains]

I bought a council house through RTB a few years ago. You do need to go through the process in order to get a valuation as, the council will send their own surveyor/valuations person out.
I didn’t have a deposit and managed to use the discount as deposit (I had maximum discount). It was win win for the mortgage company really as, if I’d have defaulted on any payments and they had to take the property to auction, they would have got more than their money back!
I used a mortgage broker as a lot of the high street banks I had appointments with were not all that interested. It was well worth his fee and, I even got extra on the mortgage to use for home improvements.
You can go through the process with your council and then decide not to buy but repeat the process further down the line, it won’t affect your RTB

 

[Caffeine Fiend]

Go to a broker. I have known council tenants being able to use the discount as a deposit but most high street banks wont allow that and its generally specialist providers who allow it.

First step, contact a whole of market broker, they will do a full statement of outgoings and incomings with you and give you an idea of what you could borrow. They will also be able to give you advice on what providers may allow the discount to be used as deposit.

 

[Thetruth123]

Thank you for help and advice

 

[hiya_hun]

How long have u been in the house?

 

[Thetruth123]

How long have u been in the house?

14 years so maximum discount

 

[Lizzie Mintdrop]

How do you know there will be an 83% discount if you don't know the asking price? You may not get the full discount as it depends on work done to the property, how long you have been a council/RSL tenant and many other factors. You need to do the full application to find out the price of the property. The housing provider needs to do full due diligence when selling the property to ensure there is no profiteering so the application process will be thorough and you will need to do it if you buy the property so you may as well do it first