Right To Buy Mortgages

Right to Buy Mortgages are mortgage products specifically for use by public housing tenants who wish to purchase the property they rent under the right to buy scheme. Public housing tenants are people who rent their home from the local council, a housing association or a housing action trust.

Before applying for a Right to Buy mortgage, you should first make sure you have the right to buy your property. Some housing authorities will not allow their properties to be bought by their tenants.
The 1981 Housing Act allows council tenants to buy the property they live in from the local authority.

• If you have been a secure council tenant for at least two years (or five years if you became a tenant after 18 January 2005) you are likely to have the Right to Buy your council home at a discount.
• If your were a secure tenant of a local authority and the ownership of your property was transferred to a housing association you may be eligible for a Preserved Right to Buy (PRTB) for your property.This will only apply if you are still the tenant of the same property before and after the transfer.
• The amount of discount depends on how long you have been a tenant. For example if you have lived in a house for five years the discount is 35 per cent of the market value of your house. If you have lived in a house for 20 years the discount is 50 per cent.
• However, the discount is limited to the maximum amount available for your area. The maximum discount ranges from £16,000 to £38,000 for both flats and houses depending on where you live. To find out about the discount available contact your landlord.

If you still consider you have the right to buy, then the next step is to receive confirmation by filling in a form obtained through your landlord. This form needs to be returned to the landlord who will then send you a response notice telling you if you have the right to buy or not.

Once your right to buy has been confirmed then the landlord will send a notice which reveals, the price to pay less any discount for the property and the terms and conditions of the properties sale. At this stage consumers can arrange the mortgage and carry on with the purchase.

There will be terms and conditions attached to a right to buy and if consumers decide to resell the property within a three year period, they may have to pay back some or even all of the discount granted to their local authority.

A right to buy mortgage usually costs the purchaser less then buying a property on advertised on the open market. At PeopleFinance.co.uk we can help you get a Right to Buy Mortgage, an independent financial processor will aim to get you the best deal to match your credit circumstances.

Related Right to Buy Mortgage Products:
Council Right to Buy Mortgage | Right to Buy Mortgage | Right to Buy Mortgages