Right to Buy Mortgages
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Secure Your Right To Buy Mortgage: Buy Your Council Home Today
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APPLY FOR A RIGHT TO BUY MORTGAGE, SECURE YOUR RESIDENCE
We specializes in helping you navigate the Right to Buy scheme, ensuring you secure the best mortgage options available.
What is a Right to Buy mortgage?
A Right to Buy mortgage helps council tenants purchase their homes from public sector landlords, like local councils or housing associations. This program allows eligible tenants to buy their properties at a lower price than the market value. With this opportunity, many people can become homeowners and enjoy the benefits of owning their own space.
How does a Right to Buy mortgage work?
A Right to Buy mortgage functions similarly to other mortgages, but it comes with a special advantage: a discount on the market value of your council house or flat. This discount is based on how long you have lived in the property, making it easier for eligible tenants to afford home ownership.
When you decide to buy your council home, the discount can often serve as your full deposit. However, some lenders might still require an additional deposit depending on your financial situation and credit history. For instance, if the market value of your home is £200,000 and you receive an £80,000 discount through the Right to Buy scheme, you can use that discount as a deposit. In this case, the lender would view this as a 40% deposit, with the remaining £120,000 covered by a mortgage.
Not every lender will accept this arrangement, so it’s wise to work with a mortgage broker who understands the Right to Buy process. They can guide you to lenders that allow this type of financing and help you navigate the application process smoothly.
What is the Right to Buy discount?
The Right to Buy discount is a key benefit that helps eligible council tenants purchase their homes at a lower price. This discount varies depending on the type of property and how long you have been a public sector tenant. Understanding how the discount works can help you make informed decisions about buying your home.
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How much is the Right to Buy discount?
There are different discount levels for houses and flats, and the amount you can save increases with the length of your tenancy.
| Houses | Flats |
| 3 to 5 Years: If you’ve been a public sector tenant for between 3 and 5 years, you will receive a 35% discount on your council house. | 3 to 5 Years: For those living in council flats, a 50% discount applies if you’ve been a public sector tenant for between 3 and 5 years. |
| More than 5 Years: After 5 years, the discount increases by 1% for every additional year you have been a public sector tenant, up to the maximum discount amount. | More than 5 Years: After 5 years, the discount rises by 2% for each extra year, also up to the maximum discount amount. |
What is the maximum discount amount?
The maximum discount you can receive depends on when you apply. If You Apply Before 21 November 2024:
| Region | Maximum Discount |
| London | £136,400 |
| Rest of England | £102,400 |
If You Apply On or After 21 November 2024, the maximum discount remains whichever is lower between:
| Region | Maximum Discount | Exceptions |
| North East | £22,000 | Not applicable |
| North West | £26,000 | Not applicable |
| Yorkshire and the Humber | £24,000 | Not applicable |
| East Midlands | £24,000 | Not applicable |
| West Midlands | £26,000 | Not applicable |
| Eastern | £34,000 | £16,000 in the district of Watford |
| South East | £38,000 | £16,000 in Reading Borough and West Berkshire, Hart District, Oxford, Vale of White Horse District; Tonbridge and Malling; Epsom and Ewell; Reigate and Banstead |
| South West | £30,000 | Not applicable |
| London | £16,000 | £38,000 in Barking and Dagenham and Havering |
Understanding these details will help you navigate the Right to Buy process more effectively. Whether you’re considering buying your council home or exploring options as a housing association tenant, knowing how discounts work is crucial for achieving home ownership.
To qualify for the Right to Buy scheme, you must meet the following conditions:
Summary of the Right to Buy eligibility criteria
| Criteria | Details |
| Main Home | Property must be your only or main home. |
| Self-Contained | No shared rooms with others outside your household. |
| Secure Tenancy | Must have a legal tenancy agreement with your landlord. |
| Minimum Tenancy Duration | At least 3 years as a public sector tenant (not necessarily consecutive). |
| No Sheltered Housing | Ineligible if living in accommodation suited for older or disabled people. |
| Joint Applications | Can apply with other tenants or family members living in the property. |
How do I apply for a Right to Buy mortgage?
Applying for a Right to Buy mortgage is an exciting step toward owning your home. The process involves several key steps that will help you navigate through the application smoothly. Here’s how to get started.
Before diving into the application, ensure you meet the eligibility criteria for the Right to Buy scheme. This includes being a council tenant or a public sector tenant and having lived in your property for at least three years. Knowing you qualify will make the next steps easier.
Once you confirm your eligibility, it’s time to fill out the Right to Buy application form, known as the RTB1 form. You can obtain this form online or request a printed copy from your landlord. After filling it out, send it back to your landlord using registered or recorded delivery to ensure you have proof of submission.
Your landlord has up to four weeks to respond to your application if you have been a tenant for three years or more. If you’ve been with your current landlord for less than three years, this may take up to eight weeks. If there are any delays beyond this timeframe, don’t hesitate to contact a Right to Buy adviser for assistance.
If your application is approved, your landlord will send you an offer notice (known as a Section 125 notice) within eight weeks for houses and twelve weeks for flats. This document will outline the property’s market value, the right to buy discount you qualify for, and any terms and conditions related to the purchase.
You have twelve weeks from receiving the offer notice to accept it. During this time, arrange for a survey of the property and consult with a mortgage broker to explore your financing options. It’s essential to understand all costs involved before making any commitments.
Once you’re satisfied with the offer and have arranged your mortgage, you can proceed with completing the purchase. This involves finalizing legal documents and making necessary payments. Congratulations! You will soon be on your way to owning your council home.
BEST RIGHT TO BUY MORTGAGE BROKERS IN THE TOWN!
Finding the right mortgage broker is essential when you decide to buy your council home. Expert Mortgage Brokers specializes in helping you navigate the Right to Buy scheme, ensuring you secure the best mortgage options available. Our team understands the unique needs of council tenants and is dedicated to guiding you through the entire process.
Frequently asked questions about the Right to Buy mortgages
Yes, you typically need a deposit when buying your council house. However, the Right to Buy discount can often be used as your deposit. For example, if your home is valued at £200,000 and you receive an £80,000 discount, you can use that amount towards your deposit. Some lenders may still require an additional deposit depending on your financial situation and credit history.
Absolutely! You can apply for a Right to Buy mortgage with a partner. If they share your tenancy or have lived with you for the past 12 months, they can join the application. This joint application can help strengthen your case when seeking approval from mortgage lenders, making it easier to buy your home together.
Yes, you can sell your home after purchasing it through the Right to Buy scheme. However, if you decide to sell within the first ten years of buying, you must first offer it back to your old landlord or another social landlord in the area. If they agree to buy it, the sale price will be determined based on market value. If they do not respond within eight weeks, you are free to sell it to anyone.
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