The scheme has evolved slightly over the years but it’s still a popular option for many and, if you’re eligible for the programme, it could see you climb the property ladder sooner rather than later. If you’d like to find out more, get in touch with the Create Finance team today.
If you’re wondering what the right to buy scheme is, then you’ve come to the right place. Here, you’ll find a comprehensive guide on everything to do with these kinds of products, covering how right to buy works and what right to buy mortgages actually are, so you can work out if it’s the best option for you and your specific circumstances.
This government scheme is available to council tenants and some housing association tenants, helping them to buy their homes and take their first step onto the property ladder. It was first introduced by Margaret Thatcher in 1980, with large discounts available to help people invest in property.
Your discount will depend on where you live, how long you’ve been a tenant in your home for and whether you live in a flat or house.
The scheme has evolved slightly over the years but it’s still a popular option for many and, if you’re eligible for the programme, it could see you climb the property ladder sooner rather than later. If you’d like to find out more, get in touch with the Create Finance team today.
If you’re wondering how to apply for right to buy, the first step is to find out if you’re eligible for the scheme.
You may be able to apply if you’ve had a public sector landlord for at least three years, if you will be using the house as your main residence, you don’t share the property with others, you don’t have any large debts, haven’t been declared bankrupt, haven’t been threatened with eviction and if there isn’t a housing shortage in your area.
You can take the government’s right to buy eligibility quiz if you’re not sure you qualify. You can also talk to an official adviser who can help you answer the questions. Note that your eligibility will also need to be confirmed by your landlord.
The qualifying period of three years doesn’t need to be in the same house with the same landlord. If you’ve lived in different homes with different landlords, you may still be eligible - as long as you had a public sector tenancy.
There are various lenders now operating in the right to buy mortgage market that will provide financing for those who are eligible, even if you do have bad credit.
Note, however, that if you do have a poor credit rating, you may find it hard to obtain a mortgage and you may be offered higher rates, as you’ll be viewed as a riskier investment than someone with a good credit score.
The right to buy scheme allows the majority of council tenants to buy their council homes at a discount. You may want to seek independent advice to find out if you’ll be able to take out a right to buy council house mortgage.
The maximum discount is £87,200 across England, except in London where it rises to £116,200. The discount increases annually in April in line with the consumer price index.
The majority of lenders will accept your right to buy discount as your deposit - although not all of them will. Some lenders will require you to have saved your own deposit on top of or instead of the discount.
Even if the discount is used as a deposit, you will still need to have some savings backing you up in order to buy your council house, as you’ll need to pay any upfront mortgage fees and cover the likes of conveyancing and survey costs.
The maximum discount for the right to buy scheme is £87,200 across England, except in London where it rises to £116,200. The discount increases annually in April in line with the consumer price index.
If you want to find out if you’re eligible for the scheme, what discount you might be able to get and whether you’re able to afford to buy your council house, get in touch with the Create Finance team today.
Think carefully before securing debt against your home, your home
may be repossessed if you do not keep up repayments on your mortgage.
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