As a council tenant, a right to buy mortgage allows you to purchase your council home at a significant discount when purchasing a property might seem unattainable.
As part of our mortgage services, we can assist with the right to by application process and make your ambition to be a homeowner a reality. Contact us today to speak with one of our expert team members.
What is the criteria for a right to buy mortgage?
If your council home is your only home, the process of getting a right to buy mortgage should be straightforward. Provided you have no issues and legal involvement with debt and have had a public sector landlord for three years. This does not have to be continuous but there shouldn’t be a legal contract between the landlord and yourself.
How does right to buy discount work?
The above criteria will contribute to the amount of discount you will get through the scheme, for example being a tenant living in a council house between three and five years will get you a 35% discount. For every year after this, the discount will increase by 1% up to a maximum of 70%.
This will differ if you live in a flat, when you can expect a 50% discount for the same period of time and an additional 2% for every year after.
Can I pay my mortgage deposit with the discount?
Saving for a deposit can be the biggest drawback for some pending homeowners, however a right to buy mortgage can make this achievable and a lot less daunting.
Every mortgage lender is different, so speak with them first to confirm the amount of discount you can get and if your credit score and spending habits are acceptable.
Questions & Answers
Communication will mostly be between yourself and a landlord. You will need to fill out a RTB1 application form which will then need to be approved by your landlord before they can make you an offer. Financial responsibility will then be in your hands.
The right to buy discount you acquire can be used as a mortgage deposit meaning you won’t have to worry about saving up or needing to find the money at short notice.
There are other government schemes available if right to buy isn’t suitable. Shared ownership or a Help To Buy mortgage are mainly low deposit options which could be more convenient if significant savings aren’t possible.