Right To Buy
Right to buy is an excellent way to get onto the property ladder without the need to save for a deposit. You can even borrow extra money to spend as you wish – maybe for home improvements.
Right to buy Mortgages with No Deposit
The amount of discount your eligible for is dependent on three things. Where in England you live, how long you have been a council tenant and whether you live in a house or a flat.
Once you have been a Council Tenant for at least 3 years (doesn’t have to be in a row), you will be eligible for the following discounts:
- House: 35% discount from the market value of your home, when a tenant for 3-5 years. After which the discount will increase by 1% each year up to a maximum of 70%
- Flat: 50% discount from the market value of your home, when a tenant for 3-5 years. After which the discount will increase by 2% each year up to a maximum of 70%
The different options when obtaining a Mortgage:
- 100% of the discounted purchase price – Most lenders will allow you to purchase your Council property without the need of any deposit from yourself.
- Borrowing more than the discounted purchase price – Some lenders will allow you to purchase more than the discounted purchase price, to pay for things like Solicitors fees and even home improvements.
- Specialist cases – are you self-employed or do you have adverse credit? We have advisors which specialise in these cases too. So, don’t let these factors put you off purchasing through the Right to Buy scheme.
What’s the full process of purchasing my Council property?
- Apply to your landlord online or by printing out a postal application form right to buy
- The Landlord will contact you within 4-8 weeks to confirm your eligibility
- Right to Buy Offer – your landlord then has 8 to 12 weeks to send you your Offer, which will confirm the estimated market value of your property and the discount you are eligible for. The market value minus your discount is the amount you will need to pay, to purchase your property.
- Obtain a Mortgage – you then have 12 weeks to accept your Landlords offer. During which you will need to speak with a Mortgage Advisor, who will arrange the Mortgage for the amount you require. You will also need to instruct a Solicitor who will complete the purchase for you once you have obtained your Mortgage Offer (link to full Mortgage Process)
- Completion. Congratulations, you are now a homeowner.
- Lenders Arrangement/Product fees – a fee the lender will charge for arranging your Mortgage. In general, the higher the Arrangement fee the lower, the Interest rate. Most, if not all lenders, will also provide a low/no fee option and charge a slightly higher rate as a result. These fees tend to be between 0-£999.
- Broker fees – this will depend on how complex your case is. For example, whether you have any adverse credit. To find out exactly what it could cost, get in touch with one of our Mortgage Brokers for a free non-obligatory quotation. Our Mortgage Brokers operate a fair fee policy and will tell you from the very start what, if any, their costs will be. On average though, you can expect to pay between 0-£495.
- Solicitors fees – for a right to buy purchase, you can expect to pay anywhere between £800 and £1,500, so its important to shop around. Our Mortgage Advisors can again provide you with a quote.
- Stamp Duty – if you are a first time buyer in England, it is unlikely you will pay stamp duty if your propery is valued less than £500,000. For non first time buyers, Stamp duty will be due on properties worth over £125,000.
- Mortgage Valuation – the lender may charge a fee to complete a basic valuation of your property during the application process. This will be between 0-£250. But could be more if you need to use a specialist lender, if you have adverse credit for example.
- Survey fees – you may choose to carry out a more thorough assessment on your property. The most common, being a Homebuyers report, which will cost between £300-£500.
Simply have a question or need to get moving. Next steps?
Not all Mortgage Advisors will have the specialist knowledge or even deal with Right to Buy Mortgages. Speak to one of our qualified, regulated and highly rated Mortgage Advisors. Simply complete our short Mortgage Enquiry form and we will get one Mortgage Advisor that is local to you and which specialises in your case, to give you a call.
They can answer any other questions you have, provide you with a free non-obligatory quote and/or talk you through the process in greater detail.
If you’re self employed or have had credit problems in the past, don’t worry, we can help. As a specialist in these areas, we have access to all Specialist Mortgage Lenders.
All our Mortgage Advisors hold the full CeMap qualification (Certificate of Mortgage Advice & Practice) and are regulated by the Financial Conduct Authority.
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