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Right to Buy Mortgages

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What is a right-to-buy mortgage?

A right to buy mortgage is a government scheme that enables council tenants to buy their homes in the UK. Sometimes, these homes are offered at a significant discount and may not even require a deposit as it would be the case with other types of mortgages. Most lenders allow the borrowers to put the discount down as part of the purchase price.

As it is with other mortgages, the right to buy mortgage is also subjected to affordability checks. The discount an individual receives on the house depends on factors such as the type of property, location, and value at the time of application.

When can I apply for a right-to-buy mortgage?

You can apply for a right to buy mortgage if:

  • The property is your only residence
  • The house is self-contained
  • There is a legal document binding you, the tenant, to the landlord at the time of application
  • You have had a public sector landlord for at least 3 years
  • You are based in England

It is also essential that you prove you can finance the mortgage. Therefore, your finances and credit score will also be assessed to determine whether you qualify for the mortgage facility. When found eligible, you are offered the mortgage up to six times your salary.

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When should I seek the services of a special lender?

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FAQs

Who organises Right to Buy?

A scheme set up by the government to enable the purchasing of local authority housing.


How do I find info about property ownership?

The land registry is where information regarding ownership and rights to the property in question are recorded.


What is a mortgage term?

A mortgage term is the total number of years in which you have taken the mortgage over. The term that you take isn’t just a ‘pluck a figure out of thin air’ arrangement, and is something you need to consider seriously. It goes without saying the longer you take the mortgage term, the more interest you will pay, so it’s in your best interest to keep the term as low as possible on this basis. That said, it’s not always that easy as having a shorter mortgage term as the term itself can have a significant bearing on the amount you can borrow and the monthly repayments. The length of the mortgage should always be specific to your needs and not simply a generic figure.