Besure Financial Services Ltd is authorised and regulated by the Financial Services Authority (Registration Number 301120) for residential mortgages, pure protection and general insurance business. We do not charge a fee for mortgage advice, however our typical administration fee for processing your mortgage is £495 and depending on your circumstances could be up to 1% of the mortgage advance. The overall cost for comparison is 7.7% APR.
Council House Mortgage
A Council House Mortgage is an ideal way for people to get onto the property ladder without the need to save for a deposit. The deposit would come from the discount which the council give you. The amount of discount would depend on what area you live and also the amount of time you have been renting from them. The Council would instruct a valuer to assess your property, (however these valuations usually come in much lower than actual market values). You would then be issued a Section 125 notice with the exact figures for us to get some quotes together for you.
You can usually borrow extra money as well for home improvements etc with your Council House Mortgage.
Please see example below.
Council value your property at £125,000, however they offer you a discount of £38,000. This would obviously mean that you would need a mortgage for the remaining £87,000. Because the council house mortgage (the £87k) equates to approximately 70% of the Council market valuation (the £125k), and the lender would usually lend up to 95% of the £125,000, meaning you could actually borrow up to £118,750.
If you would like to apply for a Council House Mortgage, APPLY HERE, where we will be able to give you advice on the whole procedure and look after your application from you becoming a tenant to a home owner.