Case Study: A Nurse buys a Right-to-Buy Property in Wythenshawe
Manchester Mortgages provide a specialist mortgage brokering service to all NHS workers. In this case study our client is an NHS nurse working at Wythenshawe Hospital, Greater Manchester. Here’s how we helped him get a mortgage for his Right to Buy house from Manchester City Council.
The Client’s Situation
Manchester Mortgages received a phone from a potential client asking for advice on purchasing their council house through the government’s Right to Buy Scheme.
The client was in their late 30’s, single with no children, employed as a Nurse at nearby Wythenshawe Hospital with a salary of just under £25,000 per year.
Manchester City Council valued his property at £140,000 and offered him the chance to purchase the property at a discounted price of £74,200 – a saving / discount of £ 65,800 !!
The current rent payments were £ 380 per month which over time would only increase.
They had an unsecured loan with £10,000 outstanding for which they were paying £229 per month owed £1,200 on a credit card which they were paying minimum payments of £36 per month.
They had a good credit history with no missed or late payments.
The Solution
As Manchester Mortgages are a whole of market / independent broker we were able to research the mortgage market and recommended that clients take a five year fixed rate with Nationwide Building Society mortgage of 1.94% over 30 years with no lenders arrangement fee and a free mortgage valuation.
The mortgage payments within the fixed rate period are £ 272 per month – a saving of £108 per month on the rent & the property belongs to them.
A five year fixed rate was recommended as with Right to Buy purchases the discount is repayable if the property is sold within the first five years.
Once the five years has passed the property can be sold without any discount having to be repaid , or if the client wants to remain in the property Manchester Mortgages will contact them to review their mortgage requirements.
Manchester Mortgages also recommended a Solicitor to transact the purchase and arranged the protection of the mortgage by way of life and critical illness cover.
Conclusion
The NHS nurse is now the proud owner of his own property and saving £108 per month on his rent and has the knowledge that his mortgage payments will not increase for the next five years and also any improvements he does will add future value to the property.
So if you have the opportunity to purchase your council property, or have an existing mortgage and wish to review your mortgage rate or have outstanding loans or credit card balances or wish to improve your property give MANCHESTER MORTGAGES a call on 0161 706 0242 to see if we can help.
> Visit our main Specialist Mortgages for NHS Workers page
Manchester Mortgages is a trading name of Mortgages 4U (North West ) Limited which is authorised and regulated by the Financial Conduct Authority (FCA register number 301076).
Registered in England & Wales No. 4729252. Registered office: Suite 8 Moorfield House, 2a Moorside Road, Swinton, Manchester M27 0EW
Your home or property may be repossessed if you do not keep up repayments on your mortgage.