Buying a house for the first time can seem daunting, especially if you’re unsure what you’re letting yourself in for. After all, there’s a lot
Buying a house for the first time can seem daunting, especially if you’re unsure what you’re letting yourself in for. After all, there’s a lot
Right To Buy allows most council tenants in England to buy their council home at a discount.
I want to
For those wondering ‘what is Right To Buy?’, it’s a mortgage scheme devised to encourage and enable eligible council house tenants (and members of some housing associations) to buy their home at a discounted price.
Of course, there are rules to abide by and criteria to meet to access the Right To Buy programme.
What are the benefits?
As house prices continue to rise and people struggle to make payments, the Right to Buy scheme can help alleviate financial stress by offering substantial discounts. These make home ownership more accessible to those who may not otherwise have the necessary means.
Right-to-buy mortgages also give people a sense of financial security compared to renting. It becomes an asset that can be sold in future if required, for example to help pay for care later in life. A home purchased through this scheme can also be left to your children, reducing a demand for state-provided housing.
Home-ownership also permits people to make adjustments to their home without needing any authorisation from a landlord. Not only that, the scheme provides people the freedom to move home whenever (and to wherever) they want.
What are the risks?
Houses prices obviously move up and down, so it’s vital to assess long-term affordability. This means asking yourself, even if eligible for the scheme, whether you can afford it both now and in the future.
Like with any mortgage arrangement, it’s your obligation to comply with its terms. Your home may be repossessed if you do not keep up repayments on your mortgage.
With that in mind, research thoroughly the likely costs, and speak to trained professionals who can provide you advice tailored to your personal circumstances.
One way you can do this is to reach out today to an expert mortgage advisor at UKMC.
Your questions answered about Right To Buy
You should not have any major outstanding debt, such as previously being bankrupt. You should also keep in mind that the property you inhabit should not be classified as sheltered housing, which is reserved for groups like the elderly or the disabled.
There are no specific restrictions on who can contribute. For example, a family member or someone else could provide financing for the purchase. However, legal ownership of the property can only be in the names of those tenants who are eligible.
No, of course not! The decision to buy your home is a significant one. Therefore, if you have any questions or concerns about the Right to Buy scheme, consider asking your landlord or a mortgage advisor to answer them – whether that’s in relation to your eligibility or the application itself.
UKMC can help if you reach out and arrange a consultation today with one of our expert mortgage advisors.
First, check that you’re eligible to purchase a property using the Shared Ownership Scheme. You can do this by asking your mortgage advisor or by reading the relevant government guidance.
Next, you’ll have to find a suitable shared ownership home that you like in your desired location. As with any property you’re interested in, you should view the home, make sure you’re eligible, and ensure you can afford the property.
You’ll be asked to pay a reservation fee to the landlord of up to £500. This secures the property for a fixed period and the amount is deducted from the final amount you pay on completion day. If you do not buy the home, you won’t usually get the fee back (check with the landlord before you reserve).
A mortgage advisor will help you to secure the most appropriate mortgage for your current needs and circumstances from a selection of lenders and understand your mortgage offer, while a solicitor or conveyancer will handle the process of ownership transfer.
What Is The Criteria To Apply?
You must have been a public sector tenant for at least 3 to 5 years. This is usually with a council or housing association.
The property must be your main home and should not be excluded from the scheme, such as properties adapted for elderly/disabled people.
The scheme is typically available to secure tenants of councils or housing associations.
You must not have any legal issues, such as being subject to a bankruptcy order or have a suspended possession order against you.
You can apply alone or in a joint application with up to 3 family members or other tenants who have lived with you for the last 12 months.
Find expert guidance, and all the information you need to make informed decisions on your path to homeownership.
UK Mortgage Centre is a trading style of Refresh Mortgage Network Limited. Refresh Mortgage Network Limited is authorised and regulated by the Financial Conduct Authority. FRN – 826982. Registered in England & Wales: 11614569. As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments. The Financial Conduct Authority does not regulate some forms of buy-to-let mortgages. The Financial Conduct Authority does not regulate will writing and taxation and trust advice.
You may be charged a fee, starting from £345, for our advice given. Your dedicated advisor will discuss this further on your free initial phone call.
The guidance and/or advice obtained within our website is subject to the UK Regulatory Regime and is therefore primarily targeted at customers in the UK
