If you have questions about a Bad Credit Right to buy Mortgage it’s worth noting that Obtaining a Mortgage when purchasing your home under the Right to Buy scheme is a little different to the rest of the market at the moment when it comes to the Bad Credit part of the market.
The Bad Credit market in general is very very good at the minute with low rates, relaxed criteria and so on. That does not quite carry over to properties being purchased under the Right to Buy scheme – but it is not all bad news.
Normal Rates are available
Depending on the level of Bad Credit you have, we may be able to get you normal rates. There is not really a way to measure what bad credit you can have in order to obtain a Mortgage at normal rates. If you have a 5 year old default on a mobile phone that has been satisfied, there is every possibility we could get that through at normal rates. If you have 2 CCJs and 3 defaults registered last month, it is very unlikely.
As most people with bad credit will probably fall somewhere in the middle, it is important that we understand what you have in detail. To do that, we ask people to obtain a copy of their credit report from someone like Equifax or Experian so we can go through your credit file and give you an accurate idea of what is available.
What if we do not pass with normal rates?
This is the part of the market that has not quite opened up as much as the rest of the bad credit market, however there some options from specialise bad credit lenders with rates currently starting from around 3.25%. Typically they would like defaults/CCJs to have been registered for 2 years, but they can look at cases with defaults registered 6 months ago.
In terms of Bankruptcy, in the current climate, we would typically need the insolvency to have been discharged for at least 3 years.
We have been pushing the more specialist bad credit mortgage lenders to open up their products to applicants looking to purchase under the Right to Buy scheme. In the last month we have had 2 Mortgage lenders confirm they are looking in to this and we should have some news on those deals in the next couple of months.
Check the following link If you want a little more info on Bad Credit Right To Buy mortgages with Defaults.
If you are looking to purchase your home with a Bad Credit Right to Buy Mortgage it is well worth getting in touch.
Whilst there are less options than in the rest of the market, we do still have options that cover the milder end through to the more severe end. We can take a look over your credit report and discuss your options in detail to give you an accurate idea of what you can expect if you were to apply.