Manchester Mortgages received this enquiry through our Contact Page on our Web Page.
Our client had purchased his council property three years ago with his partner through the Right to Buy Scheme.
Their relationship had broken down and his partner was no longer living at the property and wished to have her name removed from the mortgage and also wanted £20,000 from the equity of the property.
Client was a self employed builder paid through the CIS scheme.
Taking all of the above into consideration you would not think our client would have a problem obtaining a mortgage and that lenders would be lining up to offer him a re-mortgage.
However, as the property was bought through the Right to Buy Scheme one of the conditions of the purchase is that part or all of the discount received is repayable if the property is sold within five years of purchase and this also effects how lenders look at re-mortgages.
The majority of lenders will not re-mortgage within the discounted period and also will not lend additional funds for any reason.
Also not all lenders accept CIS income.
After researching the whole of the market Manchester Mortgages found a High Street lender willing to lend on a competitive two year fixed rate who was also willing to accept the re-mortgage within the discounted period.
The lender also accepted CIS income.
The lender however did not lend the additional £20,000 required to buy out his partner – this was given to him by his mother.
However, in two years time when clients fixed rate ends he will be outside the Right to Buy 5 years discounted period and we will either be able to look at obtaining a further advance with his existing lender or re-mortgaging to a new lender to capital raise the £20,000 to repay his mother.
Our client now owns the property in his own name and by fixing the mortgage rate he will know what their mortgage payments are for the next two years.
Also by fixing their mortgage rate for two years it will mean that when Manchester Mortgages contact our client to review his mortgage we will be able to look to raise the £20,000 required to repay his mother.
Sometimes you have to take a step backwards to take two forwards.
Even straight forward looking mortgages have some sort of twist to them – we know because Manchester Mortgages deal with them every day – contact us on 0161 706 0242 or send us a message through our contact form on our Web page to discuss your requirements