Right to Buy Mortgages

Yes, it’s definitely possible to get a bad credit Right to Buy mortgage. However, it’s not always a straightforward process.

Many specialist lenders have now entered the Right to Buy market, providing financing for eligible tenants with bad credit. However, the terms and rates offered to you may be affected more than if you had a clean credit record.

You may need to check the options that are open to you via these specialist mortgage lenders. Many of them don’t operate on the high street or online. Instead, they are only accessible through specialist advisors, such as our team here at Just Mortgage Brokers.

The Right to Buy scheme was introduced to allow tenants the ability to own the home they live in. Its design did not enable the property to be rented. Therefore, only residential mortgages are available when you look to purchase.

As life events and plans change, the council may permit you to rent the property out during the . You should always seek their permission before doing so. After the clawback period, you can use the property as you wish.

Not many lenders will permit this, as the Right to Buy discount may need to be paid back in part or in full if you sell the property. Although, during the clawback period, there are usually some lenders who will consider it. Strict terms will apply so you’ll need to check this all prior to making any plans.

Yes, you can remortgage your Right to Buy property. Essentially, lenders consider this in the same way as any other mortgage application. The main exception to the rule is that the discount clawback period still needs to be taken into consideration.

Also, there will likely be a charge registered by the council for the discount provided. This charge, if still in place, will create a small amount of additional legal work that will incur an additional cost.

When taking out a mortgage for Right to Buy you do not need to have a deposit. Many Right to Buy mortgage lenders will accept the discount provided instead. This is not the case for all lenders, however, so you may find you still need to contribute some towards the purchase.

The good news is that many lenders consider the discount as a deposit. They will typically offer you rates applicable for the lower loan-to-value this provides against the full market value. Do note that there will still be costs involved when buying your home, so ensure you have adequate funds to cover these.