Right to Buy Mortgages

Getting a Right to Buy mortgage?

So, how does the Right to Buy scheme work when getting a mortgage?

They are essentially the same as any other type of mortgage. Although, not all lenders will accept this type of application. You should therefore still have a choice of interest rates available such as fixed or tracker for example.

If you are unsure about what options are available to you, get in touch and we will pair you with one of our experts.

The Right to Buy application process

You apply for a Right to Buy mortgage by sending a completed application form to your landlord, who will respond by sending you an offer. This will outline the following:

• The price they believe you should pay for your property.
• Who worked out the price?
• How was your Right to Buy discount calculated?
• What is included in the price: a description of the property and any land.
• Estimates of service charges (for a flat or maisonette) for the first five years.
• Any existing problems with the property’s structure.

Once you have received an offer, you have 12 weeks to confirm your intention to buy. You also have the right to request an independent valuation if you believe the landlord has overvalued your home. You must request this within three months of the offer.

How much is the Right to Buy discount?

The actual percentage discount off the home depends on the type of property. The amount of time you’ve been a public sector tenant for also has an impact:

• For houses, public-sector tenants become eligible for a 35% discount after three years’ tenancy. After five years’ tenancy, the discount increases by 1% for each extra year you have been a public-sector tenant.
• For flats, public-sector tenants become eligible for a 50% discount after three years’ tenancy. After five years’ tenancy, the discount increases by 2% for each extra year you have been a public-sector tenant.

Can I get a Right to Buy mortgage with my partner?

Having the opportunity to purchase your home via the Right to Buy scheme can be exciting. However, it may not be possible based on your circumstances or you may, simply through choice, wish to purchase your home with your partner.

Typically, a lender will wish to see that the names quoted on the Right to Buy paperwork mirror that of the mortgage, then in turn the property ownership. However, this may not always be the case.

Some lenders may look at arranging the mortgage in joint names even if the Right to Buy is in your name only. For some, it’s possible to arrange a loan on a Joint mortgage sole proprietor basis. This works very similar to a guarantor mortgage.

Right to Buy mortgage brokers

At Just Mortgage Brokers, we work with over 90 lenders offering Right to Buy mortgages. If you’re looking to buy your council house or housing association property, we can help you find a mortgage deal that suits you. Even if you have a poor credit history, it doesn’t mean you won’t be eligible for a Right to Buy mortgage.

As with any financial product, it’s always worth seeking expert advice first. At Just Mortgage Brokers, we advise on the Right to Buy options that are available to you.

Our team will happily guide you through the whole application process. We work closely with leading brands and smaller specialist lenders, meaning we have access to exclusive mortgage deals to suit all requirements. Get in touch today to find out how we can help.