soulvapour 10 #1 Posted January 17, 2021 (edited) Sorry if this has been asked but I'm asking if you have to still pay the 10% deposit on a mortgage you get to buy a council house? I will be a first time buyer, and got offered my home for £40,000 when I've been on mortgage websites it asks to put in a minimum of 10% deposit. With the house been so cheap I didn't think I'd have to pay that. Anyone bought from council? Thanks Edited January 17, 2021 by nikki-red Share this post Link to post Share on other sites Share this content via...
nikki-red 308 #2 Posted January 17, 2021 I bought mine in August. The discount counts as your deposit. Share this post Link to post Share on other sites Share this content via...
soulvapour 10 #3 Posted January 17, 2021 Ok thank you 😊 Share this post Link to post Share on other sites Share this content via...
topflat29 10 #4 Posted January 19, 2021 On 17/01/2021 at 19:25, soulvapour said: Sorry if this has been asked but I'm asking if you have to still pay the 10% deposit on a mortgage you get to buy a council house? I will be a first time buyer, and got offered my home for £40,000 when I've been on mortgage websites it asks to put in a minimum of 10% deposit. With the house been so cheap I didn't think I'd have to pay that. Anyone bought from council? Thanks When you take out a mortgage to buy a property, you have to study the rules of the mortgage company. The Council does not offer the mortgage loan. The mortgage lender will expect you to put up 10% - 20% deposit and they will lend you the other 80%-90%. 10% deposit is usually reserved for first time buyers but the interest rate charged on the loan is higher and you may be required to pay admin fee say £499 . Share this post Link to post Share on other sites Share this content via...
Jeffrey Shaw 90 #5 Posted January 20, 2021 On 17/01/2021 at 11:25, soulvapour said: Sorry if this has been asked but I'm asking if you have to still pay the 10% deposit on a mortgage you get to buy a council house? I will be a first time buyer, and got offered my home for £40,000 when I've been on mortgage websites it asks to put in a minimum of 10% deposit. With the house been so cheap I didn't think I'd have to pay that. Anyone bought from council? Thanks There's no deposit, because there's no contract for sale/purchase. If the net purchase price is £40 000, much depends on Loan-To-Value ratio set by your chosen mortgagee (lender). Perhaps its LTV is limited to 90% and it's unwiling to lend more than that. Best to ask it if the 90% figure applies to RTB purchases. Share this post Link to post Share on other sites Share this content via...
Jeffrey Shaw 90 #6 Posted January 21, 2021 Clarification: 'value' (in 'LTV') usually means 'purchase price' or valuer's view of what the property's worth. But an RTB purchase involves a statutory discount off the open-market value. The mortgagee (lender) may contemplate a 100% mortgage advance if confident that the mortgagor won't default during the first year- after which a percentage of the discount ceases to be recoverable on early sale. Share this post Link to post Share on other sites Share this content via...