Right to Buy Scheme
We previously published an article entitled: Right to Buy | Bluestone Launching New Right To Buy Products | 2021. Today, we want to give you more content on Right to buy, hence “Your Guide to An Amazing Mortgage Journey.”
The government’s Right to Buy initiative allows individuals to purchase their currently rented council house at a reduced rate. Excitingly, recent updates indicate an upcoming extension of the scheme to Housing Association tenants. This comprehensive guide provides insights into the program, eligibility criteria, application procedures, and essential considerations. Stay informed and navigate the process smoothly with this invaluable resource.
What is right to buy?
The Right to Buy program, a government initiative, offers the opportunity to purchase your home at a discounted rate if you are currently renting from the council or a participating housing association. Specialised mortgages tailored for Right to Buy make this process more accessible, and in certain instances, there may be options where a traditional deposit is not required. However, it’s essential to note that while a deposit might not be necessary, other upfront fees could be associated with securing a Right to Buy mortgage.
Who qualifies for the Right to Buy scheme?
To meet the eligibility criteria, you must:
- Reside in a property rented from the council or a participating housing association, and this property must be your primary residence.
- Have a rental history with the council or a housing association for a minimum of three years, which does not necessarily have to be consecutive.
- Have no outstanding debts with the relevant council or housing association.
- Hold a secure tenancy, indicating a lifetime tenancy where eviction can only occur with legal justification.
- Ensure that the property you intend to purchase is self-contained, with all its facilities and not shared, such as a bathroom or kitchen.
Additionally, there are limitations on the maximum discount you can avail through the Right to Buy scheme.
Right to Buy Scheme | Getting a Right to Buy mortgage
Securing a right to buy mortgage can be done through a standard residential mortgage, but some lenders specialise in offering specific Right to Buy mortgage products. These specialised mortgages frequently require lower deposits than standard residential mortgages, and in certain instances, lenders may even cover the full discount price of the property.
While right-to-buy mortgages may offer relative affordability, it’s crucial to remember that additional costs come into play when purchasing your first home. Ensure you consider these associated costs to accurately gauge whether you can afford to buy a home through the Right to Buy scheme.
Right to Buy Scheme | Costs of Right to Buy