Right To Buy Mortgage

Right to Buy is a government scheme that allows council tenants to purchase their homes at a significant discount. This policy was introduced by Margaret Thatcher in the 1980s and continues to be popular.

In fact, you may even be able to use the discount as a mortgage deposit, enabling you to buy your home with less savings.

How much is the discount? 
The discount amount varies depending on whether you live in a house or a flat.

It applies to the total duration of your tenancy in the public sector, not just the time you’ve lived in your current home.

Houses:
After three years of tenancy, you are eligible for a 35% discount. The discount increases by 1% for each additional year of tenancy, up to a maximum discount of 70% after five years.

Flats:
After three years of tenancy, you are eligible for a 50% discount. The discount increases by 2% for each additional year of tenancy, up to a maximum discount of 70% after five years.

Maximum discounts apply whether you’re purchasing a house or a flat. Please refer to the government’s Right to Buy site for the latest limits.

You qualify for Right to Buy if:

• You have been a council or housing association tenant for at least three years, although not necessarily continuously
• The property is your primary residence
• You do not live in sheltered housing for elderly or disabled individuals
• You do not have serious debt problems, such as bankruptcy
• You do not have any outstanding possession orders against you
• Your home is not scheduled for demolition

Housing association tenants are eligible for a similar scheme called Right to Acquire, but it has slightly different eligibility criteria and rules.

Your home will be valued on the market, and the Right to Buy discount will be calculated based on that value.

The amount of the Right to Buy discount varies depending on your location in the country, the length of time you’ve been a council tenant, and whether your home is a house or a flat.

To determine the exact discount you may be eligible for, you can use the Right to Buy discount calculator.

Once you have an idea of your discount, you can start planning what type of mortgage you might qualify for.

One major advantage of Right to Buy is that, in some cases, you don’t need to save for a deposit because you can use your Right to Buy discount instead.

While most lenders accept a Right to Buy discount as a deposit, not all of them do. Some may require you to save your own deposit in addition to or instead of using the discount.

Even if you use your discount as a deposit, you still need to have some savings to purchase your council home. You will be responsible for paying any upfront mortgage fees, as well as survey and conveyancing costs.

Why Best 4U?

As an independent mortgage broker, we are only interested in getting the best deal for our clients! We work with a wide range of lenders and can view the whole of market, with your goals and dreams in mind we can help you to get the deal that is Best 4U!