COUNCIL RIGHT TO BUY MORTGAGE

The Right To Buy scheme enables UK local authority tenants of two years or more to buy the home they are currently living in at a discount. Discounts vary by local authority.

If this is you and you are interested in buying your home then you will probably need a mortgage. Instead of paying rent you will have to make mortgage repayments each month, but at the end of the mortgage term you will actually own your home.

Not all mortgage lenders provide right to buy loans. However, we can help you. We can explain to you the different types of mortgage available. We can research the residential property lending market for you to get the best choice of right to buy mortgages and select the ideal loan for your particular circumstances.

Our specialised brokers provide free professional advice, which is unbiased, as they are not linked to any particular lender. They should be able help you even if you have credit issues however bad they might seem. Call us now for information on what to do next and let them help you get the mortgage you need.

The scheme has enabled over 1.5 million council tenants to buy their own homes. It has been so successful that better off council tenants have been able to stay in the same area where they grew up or have lived for many years, and this has resulted in more stable communities in those neighbourhoods.

If you buy your home through this scheme then your property could become a valuable asset and your local authority will have given you a discount to help you buy it.

What is Right to Buy?

The Right to Buy scheme enables you to buy your council house or flat at a price lower than the full market value.

The scheme is only available to local authority tenants who have rented their home for two years or more. But, if you started renting after 18 January 2005 then you will have to wait five years before you become eligible.

The discount you get off the full market value will depend on how long you have been paying rent to your local authority. There is a maximum limit on the size of the discount and this will vary by area. 

You probably have the right to buy if you are a tenant of a Right to Buy Landlord, which is broadly defined as being any district, county or borough council in England and Wales. There are some exceptions so it is best to check with your local authority or let us check out your status for you.

If you rent any land with your home, such as a garden or garage, it will usually be treated as part of your home and will become yours when you buy.

How Much will I have to Borrow?

The amount you need to borrow will depend on the full market value of your home, minus the discount you may be entitled to and minus any cash of your own that you can put towards the purchase.

Your landlord will tell you how much he thinks your home is worth when you apply to buy it.

Typical discounts available range from £16,000 to £38,000 for both flats and houses, but the actual discount you get will depend on where you live.

There are different types of mortgages available and you will need to take professional advice to understand your options, some of which may be more expensive or cheaper in the long run.

Monthly mortgage payments may be lower than the rent you pay, but you will need to be aware of other costs you will have to pay as a homeowner. Furthermore there will be other one-off costs to be paid, as part of the buying process, and you will need to know what these are before proceeding.

Everyone’s particular situation is different and therefore purchase and mortgage costs will vary by individual, so give us a call if you want help in finding out what is best for you.

Depending on your situation we may even be able to get some extra cash back to spend on home improvements as part of your mortgage deal.

If you need a council tenant right to buy mortgage then just give us a call.