These mortgages are used to buy a property which you currently rent from the local authority or housing association. When buying the property you will get a discount on its open market valuation making it a worthwhile proposition.
Right to buy mortgages are available with variable, fixed, capped or tracker rates, please speak to the adviser for more information.
As well as those in regular employment with a good credit history, some lenders will also accept those with non standard employment eg contractors or those with multiple jobs or those whose income consists largely of bonuses or commission etc.
They are also able to help those with a bad credit history for example, county court judgements (ccj), mortgage arrears, ex-bankrupts and those with IVA.
Please click here to read about the house buying process.
Please click here to read about mortgages and the different mortgage types available.
Please click here to read about the different mortgage products available.
Please click here to read about self certification mortgages if you have a bad credit history or non standard employment.
Right to buy mortgages - Under the Housing Act of 1981 people who have been secure tenants of their local council or other public sector landlords (for example housing associations) for at least two years the right to buy their homes at a discount. The discount varies on the type of property, its location, its value and the length of tenancy. If you are considering the Right to Buy scheme, you can obtain a booklet called “Your Right to Buy Your Home” which will guide you through the process of buying your home.
Getting a right to buy mortgage and exercising your right to buy means that your home can be bought at a discount or reduced rate, proportional to the length of time that you have lived there - the rent that has been previously paid will be taken into consideration as a "deposit". The amount of discount thus depends on how long you have been a tenant, and the type of dwelling in question. For example, for houses, the discount after two years is 32%, with an additional 1% for every extra year up to a maximum of 60%. For flats, the discount after two years is 44% with an additional 2% for every extra year, up to a maximum of 70%.
Since you buy the property at a discount on the open market value, if the property is re-sold within a three-year period, some or all of the discount will have to be repaid to the council.
You will not have the right to buy if you live in “Sheltered housing” for the elderly, disabled or handicapped or a property which is not particularly suitable for the elderly and you are an elderly person.
In January 2003 the government proposed changes to the right to buy legislation, firstly, discounts to tenants buying their homes will be cut from the maximum £38,000 to £16,000 in 41 council areas in London and the south-east, where soaring prices have meant many people are priced out of the housing market. There are other changes which would extend the period if you sell or rent out the property where you have to repay the discount from 3 to 5 years. Another important proposal is the change to the amount to be repaid from the current percentage of discount to a percentage of the actual resale value. These all need to be taken into consideration when deciding if a right to buy mortgage is the right thing for you.