As a solution based lender this is just another area in which we are happy to consider cases you might be struggling to place. Read on and see if this Right to Buy case sounds familiar...
Steve and Anne have lived in their council house for most of their married life. They have some fabulous memories of raising their two children there and both have been fortunate enough to have flown the nest and bought homes of their own.
The opportunity has come up for Steve and Anne to buy their beloved home under the Right to Buy scheme and they feel there has never been a better time, especially as they’re keen to make some home improvements. These include Anne’s dream kitchen and a wet room to keep Steve happy – they also want to redecorate the bedrooms.
Steve is a 48 year old hospital porter earning £25,000 and Anne is 45 and a part time sales assistant earning £12,000. They’ve always been sensible and so have no unsecured debts and a clean credit history, are both named on the Right to Buy offer papers (section 125 notice) and have the opportunity to buy their home for £85,000, significantly less than the full market value of £160,000. They need to borrow the full £85,000 together with £10,000 for the home improvements. They’re aiming to retire aged 69 and therefore a term of 20 years will have the mortgage paid off before that time.
Steve and Anne were starting to think that their plans would amount to nothing as their mortgage broker had been struggling to find a lender that would not only accept Right to Buy cases but also allow them to raise capital for home improvements. Fortunately their broker received a recommendation to try the Furness and he was glad he did – not only were they happy to lend up to 100% of the discounted purchase price but were also happy to accept the capital raising element. The Furness was even happy to offer their entire product range for this case.
If you have clients who have the opportunity to take advantage of “Right to Buy” get in touch with your BDM today. We’re always delighted to discuss any case and so even if you think the situation is tricky – give us a call and run through the details. We’re here to make it easy for you to say yes.
All our case studies are based on real cases but the names have been changed and stock images have been used to protect confidentiality.