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How right to buy mortgages works
The Right to buy is a government mortgage scheme that enables council tenants in England to purchase their home at a reasonable discount, and sometimes without a deposit as some of the providers allow borrowers to put their discount towards the purchase price.
The mortgage will be subject to the usual eligibility and affordability checks and the discount the individual will receive can vary based on several factors including the type of property as well as where it is located its and its value at the time of the application. If you an individual is planning to obtain a mortgage for his council house, they should get in touch with independent mortgage advisors who will determine whether he is eligible for the Right to Buy scheme and connect him to the best RTB lender based on his needs and circumstances.
In Yorkshire,Independent Mortgage Brokers (IMB) offer such services and they have helped customers on their journey to get the right advice.
Getting a Right to Buy mortgage
- The right to buy mortgage is available to anyone who lives in a council house if they meet the eligibility criteria for a Right to Buy mortgage. Some of the criteria are as follows
- The property in question is their main or only residence
- They are based in England. Also note that Northern Ireland and Wales have separate schemes as the Scottish equivalent of Right to Buy has been abolished.
- There is a legal contract between them and the landlord which makes them a secure resident.
- The property is self-contained which means the occupant does not share facilities with other people outside of their household such as bathrooms and kitchens.
- They have a public sector landlord who has lasted for three years.
The individual’s ability to fund the purchase, is also essential and is considered too. Although the person in question who wants to get a Right to Buy mortgage for a council house needs to meet the criteria listed above, the lender will also ensure the individual meets the affordability and eligibility requirements, so factors like income and credit rating may be relevant too.
If he/she is eligible, they can be offered a mortgage based on their income and expenditure, and a lender would use an affordability model to work out how much they could potentially borrow, and the services of a specialist lender may be required in this case. If the credit rating is low, specialist lenders may also consider the application based on the age and severity of the credit issue. For instance, if the credit issue is several years old, it may be possible to get a Right to Buy mortgage with debt consolidation. Retirement also plays a role as some lenders have a Right to Buy age limit of 75, while some go up to the age of 85 and a few of them lend to borrowers even older than this, provided they are confident they can keep to their payments during retirement. Individuals who are self-employed may enjoy the benefit of the specialist lender being more flexible if their income is non-standard, offering them a deal which takes regular overtime, bonuses and commission into account. For example, some lenders offer rates that are higher than normal to borrowers who are self-employed or totally turn them away. If the property has non-standard construction a lender may offer lesser rates as some providers feel non-standard construction properties present higher risk (Some of England’s unique council properties may have elements of non-standard construction such as thatched roofs and timber frames). There are lots of advisors in UK who can connect you providers who are in the best condition to offer better deals to you.[/vc_column_text][/vc_column][/vc_row][vc_row el_class=”seo-link-sec hide”][vc_column][vc_empty_space height=”50px”][vc_column_text][slick-slider category=”28″ design=”design-5″ speed=”2000″][/vc_column_text][/vc_column][/vc_row][vc_row el_class=”call-out-sec stretch-sec” css=”.vc_custom_1568018042545{background: rgba(0,0,0,0.88) url(https://imbonline.co.uk/wp-content/uploads/2018/07/counter-wrapper.jpg?id=1382) !important;background-position: center !important;background-repeat: no-repeat !important;background-size: cover !important;*background-color: rgb(0,0,0) !important;}”][vc_column][vc_column_text]
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