The Right to Buy scheme helps social tenants in England and Wales buy their council home at a discount.
You can apply for Right to Buy if you’ve been a council or public sector tenant for five years (not necessarily five years in a row). You’re a public sector tenant if you have lived in properties provided by a housing association, the armed forces or a public body like an NHS trust.
The basic criteria for applying for a Council Right To Buy Mortgage is that a tenant has been living in their home for a minimum of two years. A tenant who is considered a ‘long standing tenant’ might be given a higher discount from the local authority. This discount can range anywhere from £15,000 to £40,000.
The property will be valued, probably by both the authority and the lender. The discounted price is then applied so that the borrower can calculate the deposit required to secure the mortgage.
Most lenders who offer mortgages for right to buy schemes will lend up to 90 – 95% of the price you’re being charged for the property. For example, if the council valued your Council House at £100,000 and under the right to buy scheme would sell it to you for £60,000 then you would need to find anywhere between £3,000 and £6,000 deposit from your own funds. In some cases, depending on the client’s credit status, there may be the opportunity to borrow additional funds for home improvements but it would all depend on the clients own particular circumstances.
Applying for a Council Right to Buy Mortgage may be slightly longer than normal mortgage applications as the process involves valuations & decisions from the Housing Association or Local Authority but typically takes about 6 weeks.
We deal with a number of High Street banks and building societies that offer council right to buy mortgages and once we have details of your circumstances we’ll work to find you a good, reputable High Street lender at the best possible terms.
We can obtain a Decision In Principle within hours for you.
Complete our full Factfind document [download] and email it back to us at Martlandmortgages.com
We will then match your needs to the most appropriate lender & contact you with details of rates and fees once we have a Yes! Decision in Principle from a lender.
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You may be required to pay a broking fee. The fee will depend on your circumstances, an indication is 2.5% of the loan subject to a minimum of £2300.
The overall cost for comparison is 4.6% APR but the actual rate available will depend upon your circumstances. Please ask for a personalised illustration.
Think carefully about securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.