Can you switch mortgage lenders with an affordable home

sylvin

Registered User
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17
This is a valid question because when the affordable homes came out, only a few lenders were approved to give mortgages on them. So the question is more like can you switch mortgage to a different lender who was on that original approved list or can the mortgage be switched to any mortgage provider in the market. And, has anyone successfully switched a mortgage on an affordable home to either someone on that approved list or to someone outside that approved list.
 

Mocame

Registered User
Messages
85
To my knowledge all mortgages on affordable homes were provided by local authorities and funded by the Housing Finance Agency. This is because there is a claw back on the discount from market value affordable housing purchasers received and this must be repaid to the local authority of the dwelling is sold on again with a certain period (I think 10 years). Banks refused to lend for these purchasers because they did not have 'first charge' on the security.

However if you are outside this claw back period I can't see why you can't get a mortgage from a commercial lender.

But why do you want to? Are you not happy with the interest rate on your county council mortgage?
 

sylvin

Registered User
Messages
17
Nope, the mortgages were provided by the banks and there was an approved list of banks you could go to to get a mortgage from.
 

Leo

Moderator
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13,221
Nope, the mortgages were provided by the banks and there was an approved list of banks you could go to to get a mortgage from.

I think it was a mix with the LAs being the main providers... Previous threads suggest the experience might be different if the mortgage was with the LA
 

sylvin

Registered User
Messages
17
Probably was a mix so. My place was from the 'affordable' scheme and we were given a list of approved banks we could go to. There was no talk of the local authority providing the mortgage at all.
 
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