Chat Support

Looking for Mortgages for Business? You're in the right place! Welcome to our new site...

With our full-market access, we were able to source and secure the ideal mortgage for our client, allowing them to purchase their home from the local council using the Right to Buy discount. 

The Client 

Looking to purchase their first home, our client held a senior full-time job in the construction industry.  

The Property

A three-bedroom terraced council house in South East London. Our client had lived there for many years, and the area was convenient for their work and enjoying central London. 

The Finance

Having rented the property from the local council for several years, our client now had the opportunity to purchase the property for themselves. They had saved up a solid deposit and, with the Right to Buy discount, only required a 63% LTV mortgage against the property’s market value. 

The Challenge

The primary challenge with this case was that our client required a lender that would accept a right-to-buy mortgage application. Not all lenders accept ex-council properties or have minimum requirements around how many in the same area are privately owned, so finding the right lender can be tricky. Right-to-buy purchases are also a little more complex, as while tenants can purchase the property at a discounted price, they require a mortgage calculated using the full market price.  

As a single-income household, affordability calculations would be difficult, especially amidst rising mortgage interest rates. We’d need to carefully compare the different options lenders offer to find the most suitable for our client. 

Additionally, the council our client was purchasing the property from had put a deadline on the transaction, which meant finding a lender that could meet the time requirements! Given the struggles mortgage lenders faced this year with rapidly increasing rates and increased caseloads, we were experiencing much longer processing times than is considered standard. 

The Solution

Following some research to source lenders that could accommodate the right to buy application and ex-local authority property, we compared interest rates, affordability and service times. Having found a mortgage that would work for our client, we spoke directly to the lender to ensure they could meet the completion deadline set by the council. Confident that they could, we proceeded with the application.

With help from our client relationship management team, the case proceeded smoothly to completion within the required deadline.

Property Details 

Property value: £325,000

Property value (right to buy discount): £212,500

Loan amount: £205,500

LTV: 63%

Rate: 3.38% five-year fixed

Term: 19 Years, capital and interest repayment 

Mortgage payment: £1,228.66 per calendar month 

Lender arrangement fee: £999 (added to loan)

Have a similar case? 

If you have a similar case you would like to discuss, get in touch, and one of our expert mortgage brokers will be happy to advise. 

An error has occurred. This application may no longer respond until reloaded. Reload 🗙