Right To Buy Mortgage

Right To Buy

Buying Your Council Home

Council Right to Buy Mortgages; what they are and how to get one.

As a council tenant you could be entitled to a huge discount of up to 70% when you buy your house or flat from the council. The maximum monetary amounts you can save is £78,600 when buying your home unless you are a tenant residents inside the London borough. Then the maximum discount has been increased to £104,900 ! You may also not need any deposit as the discount can represent this element but will need some funds to cover legal mortgage and valuation costs.

Talk to our UK right to buy mortgage team for details on the latest right to buy mortgages and get confidential free quotes on rates, repayments and costs for your own scenario on 0800 977 4701 or simply complete our on line enquiry form

Can I buy my council house?

Most council and housing association tenants now have "the Right To Buy" their home once they have been a tenant of the authority for 3 or more years. You do not need to have been in the same home for that period but need to have been a tenant of your authority for the period. The starting discount is 35% on a house or 50% on a flat for a 3 to 5 year resident. This will then grow at one percent per annum for any additional years up to a maximum of seventy percent for flats and houses. The first step is to contact your local authority whom you pay rent to and ask for the right to buy offer papers. This will clarify what they deem your house purchase price to be and the amount of discount they are prepared to offer you.

When applying for a joint discount (even with a spouse, partner or family member) the amount saved is based on the longest resident. The extended Right To Buy means you can look to buy your home from a local authority, a non-charitable housing association (known as right to acquire) or a housing action trust. Usually a "right to buy" mortgage will cost less than on the open market because as a tenant you can obtain a very significant discount on the loan.

The 1981 Housing Act initially allowed council tenants to buy the property they live in from the local authority. In 2016 the scheme was expanded in England and Wales to cover tenants of housing associations and housing trusts. In contrast to this in Scotland the right to buy was abolished by the Scottish parliament in 2016.

To qualify for a Right to Buy mortgage loan you must:

1. Be the legal tenant of the property you wish to purchase.

2. Have been a tenant of this Council or another "right to buy" landlord for at least two years. You may be entitled to a discount off the purchase price of your home. The amount of discount depends on how long you have been tenant in the Council House or other "right to buy" landlord, and the type of dwelling you are living in.

Various mortgage schemes are available some of which allow capital for home improvements.

Monthly mortgage payments can be lower than rental costs but may be similar or more expensive. However the key difference is that you will be the homeowner and once you finish paying your mortgage the home will be yours to live in, sell or rent out and you will not have to pay any rent to the council again.

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