The Right to Buy Mortgage market has not really changed in the last 5 years but Right to Buy Mortgages in 2019 are about to see some changes.
Criteria and rates have followed the market as normal except in the more specialist part of the market. That means those people who do not fit with normal banks have struggled to get mortgages to purchase their Right to Buy home.
If you were looking to purchase your home under the Right to Buy Scheme, you were limited to whatever was available on the high street. Typically that mean the odd bit of historic adverse, maybe 1-2 defaults typically small in value and over 2-3 years old.
It also meant Self employed applicants with maybe one years accounts or large increases in business were also limited in what was available to them.
What can we expect with Right to Buy Mortgages 2019?
We have been asking the more specialist lenders who lend to applicants with bad credit or one years accounts for the self employed to look at accepting applications for Right to Buy Mortgages. In our opinion it seemed like a no brainer as it would automatically mean they were accepting a large number of low Loan to Value (LTV) applications which means their risk portfolio is quite low.
The issue we have been told by all of these lenders is that they need to get the people who fund them on board with Right to Buy applications, which has always been the sticking point. However… In the last 2-3 months we have started to hear some positive sounds coming from these lenders regarding the Right to Buy scheme.
It looks like within in the next couple of months we may start to see some of these specialist lenders accepting Right to Buy with bad credit or Right to Buy applications with just one years accounts and at reasonable rates.
Whilst it has not been confirmed, we may even have products available for Right to Buy for people discharged from Bankruptcy as recently as 12 months prior or Right to Buy and Debt Management Plans.
It is looking like 2019 will be an exciting year for Right to Buy applicants who do not fit criteria on the high street.
Although these products have not been officially announced or launched just yet, it could happen at any time. If this is something that could be of interest to you, please get in touch. It looks like things will happen quite quickly and so if we can not help you now, we can keep your details to one side and be in touch as soon as these products do get launched.