Right to Buy Mortgages

Here Specialist broker, Mortgage Success Ltd will give you all you need to know about Right To Buy Mortgages and buying your council house via the Right To Buy Scheme.

Right To Buy Mortgages
Right To Buy Mortgages

The Right To Buy Scheme was initially introduced in 1980 and to date has seen some 1.5m council tenants become homeowners.

Whilst there have been some criticisms over the years and the scheme no longer operates in Scotland or Wales the original idea behind the scheme was that Right To Buy gives council tenants a tangible asset in their home which improves their future financial wellbeing. The intended benefit to local authorities is that the sale allows for funds to be realised which local authorities can then reinvest in services and particularly into new affordable housing to increase the housing stock.

The long term aim of the scheme is that for every additional council home sold, a new home will be built for ‘affordable rent’ at no more than 80% of market rent.

Are you a council tenant? 

If you are an existing council tenant or you were living in your home when the council transferred it to another landlord now might be the ideal time to think about buying your home and using your discount as a mortgage deposit so read on or give us a call to discuss your options.

What Discount is available with Right to Buy?

The maximum discount under the Right to Buy Scheme in England increases every April in line with inflation and from 6th April 2019 the maximum discount is now £82,800, or £110,500 if you live in London.

This is a substantial discount in the value of buying a property and the good news when it comes to council tenants is that the discount can be used in lieu of a deposit, which is a well documented stumbling block for many to get onto the housing ladder.

Am I Eligible for Right to Buy?

If you can answer yes to all the following you will likely qualify for the Right To Buy Scheme.

  • Are you a council (or) were you a council tenant when your home was sold to your new, current landlord
  • Is the property your only home?
  • Have you been a council tenant for at least 3 years?
  • You can confirm you are not a resident in Sheltered Accommodation or other housing specifically for the disabled or elderly
  • You can confirm you have no legal problems with debt such as un-discharged bankruptcy, pending bankruptcy petition against you, or that you have entered into an Individual Voluntary Arrangement or have obtained a debt relief order.
  • You can confirm that you do not have a possession order against you, for example, for non payment of your rent or that you have breached the terms of your tenancy agreement?
  • You can confirm that you have not received a letter from your landlord in the last 7 years that stated your property may/will be demolished?

Should I Buy My Council House?

It is very important to note that buying your home is a very big decision and will result in a financial commitment that should not be taken lightly.

The responsibilities, costs and financial commitments that come with home ownership should be thought about very carefully as they will have implications for many years to come. 

As such you should always get financial and legal advice before buying any home.

Your home could be a valuable asset for you and your family and in addition to being an investment for the future, home ownership can give you the peace of mind of knowing your home is yours to keep and it could give you more freedom to make the changes you want to your home such as building an extension or a new kitchen.

Whilst the value of property can fluctuate over time, with a bigger discount of up to £82,800 (£110,500 in London) now available with Right To Buy, now could be the ideal time to decide if home ownership is the right choice for you and your circumstances.

What Next?

If you do decide to buy your council home, ultimately it is your responsibility to arrange the means of finance to buy your home as your landlord or the council cannot do this for you.

This means you will have to go through the same process of applying for a mortgage as anyone else buying a property without the Right to Buy scheme.

We appreciate this can be a daunting task but at Mortgage Success we have years of dealing with Right To Buy Mortgages and as a Whole of Market Broker we can research the entire UK lending market to find the most appropriate and suitable home loan for your circumstances.

For a No Obligation Discussion Simply Give Us a Call

Your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it.