Another Specialist bad credit mortgage lender, MBS Lending has launched a range of broker exclusive bad credit affordable housing mortgages. The bad credit right to buy mortgage targets tenants wanting to buy their home but have experienced previous adverse credit. MBS Lending joins Precise Mortgage in supporting the Government initiative giving tenants renting Council or Housing Association property the chance to buy their home. Unlike Precise who will fund 100% of the discounted price, MBS require at least 5% deposit on discounted purchase price. The discounted purchase price is offered by the Council / Housing Association depending on the length of tenancy.
A further restriction with MBS is that the overall loan to value against open market value is restricted to 60%. However, Precise will lend up to 75% of open market value. Similar to Precise, MBS will only lend on house purchases in England but will also lend in Wales. The broker exclusive from MBS Lending offers bad credit right to buy mortgage products with rates starting at 4.99%. Minimum age on application is 18 and maximum age is 80 at end of term. There is no minimum income requirement but loan size is dependent on an affordability assessment. They will allow up to four applicants which is ideal for elderly family members included in the Section 106 agreement.
Bad Credit Right to Buy Mortgage Launch Rates & Allowable Adverse
- 4.99% 3 year discount (1.01% off SVR currently 6%) as long as a maximum £1,000 in CCJ’s & Defaults registered in last 2 years. CCJ’s must be satisfied and none registered in the last 6 months. Defaults must be satisfied on or before completion with none registered in the last 3 months. The lender will allow IVA’s and Debt Management Plans as long as they have been satisfied at least 12 months. An applicant must not have any rent arrears or be in receipt of housing benefit within the last 12 months.
- 5.99% 3 year discount (0.01% off SVR currently 6%) as long as a maximum £1,000 in CCJ’s & Defaults registered in last 2 years. CCJ’s must be satisfied and none registered in the last 6 months. Defaults must be satisfied on or before completion with none registered in the last 3 months. The lender will allow current IVA’s and Debt Management Plans (day one satisfied) assuming satisfactory conduct however this must be satisfied on or before completion. An applicant must not have any rent arrears or be in receipt of housing benefit within the last 12 months.
Mosaic Mortgages are specialist bad credit right to buy mortgage advisors and we can assess your particular circumstances and advise you of the most appropriate mortgage for your needs. Contact us for a no obligation quote and to see whether you are eligible for any of the specialist bad credit mortgage schemes currently available.
