Right-To-Buy
Right to Buy Mortgage.
Here at TW Mortgages, we are ready to help with your mortgage needs. From remortgages to Buy to Let mortgages, we have vast experience across various mortgage types, and offer FREE mortgage advice for your Right to Buy mortgage. We only get paid via the lender that you complete with, so be safe in the knowledge that we’ve removed the unnecessary costs to our services.
What is a Right to Buy Mortgage?
If you currently rent council housing and wish to purchase that property, you can take advantage of the Right to Buy Government backed scheme. This Right to Buy mortgage is designed to help you own your home at a substantial discount and get on the property ladder.
Your property will be valued and the Right to Buy discount is calculated off the back of this figure. The following factors will be taken into account in the calculations:
It depends where in the UK you live
How long you’ve been living in council housing
Whether your property is a flat or a house
If your property is a house, you could see a 35% discount with 3 years of tenancy. If your property is a flat, you could be eligible for a 50% discount after 3 years of tenancy.
It’s a good idea to check out the Government's Right to Buy calculator and then talk with a free mortgage advisor for Right to Buy mortgages. Once we have calculated the discount you’re eligible for, then we can begin searching for the most suitable mortgage for you.
How much deposit do you need for a Right to Buy mortgage?
You will still need to provide a cash deposit of around 5%-10% of the purchase price. However, there is a way to leverage the Right to Buy discount to assist your deposit.
As you will have a discount on your property from the government scheme, most lenders will accept this discount as your deposit! But not all of them. Some may request a deposit in addition or instead of the discount.
We highly recommend that you talk with a mortgage advisor early in the property buying process if you wish to get a Right to Buy mortgage as they can help you find a lender who will accept the discount deal.
Bear in mind that even if you’re able to use your discount as a deposit, you still need to factor in additional financial costs that come with purchasing a property, such as survey and conveyancing costs.
Who is eligible for a Right to Buy Mortgage?
There are numerous factors that you need to assess to find out if you’re eligible for a Right to Buy mortgage:
You’ve been a tenant in council housing for a minimum of 3 years (they don’t have to be a continuous 3 years in order to qualify).
The property is your only or main home that is not due to be demolished.
You’re not in sheltered housing for the elderly or disable people.
You don’t have serious debt problems or outstanding possession orders against you.
There are also certain affordability criteria for this type of mortgage as well, which are the same as any other mortgage applicant. You will be assessed on your earnings and your expenses, plus you will need to have your credit checked. If you're self-employed, it’s likely you’ll need to provide an extensive history of your accounts to prove your earnings.