RIGHT TO BUY MORTGAGES

If you have been renting a council property in the UK for more than two years you may be able to purchase the home due to the Right to Buy Act.  Understanding what right to buy mortgages is about can greatly help you in your efforts of being a home owner.

In 1980 the Right to Buy Mortgage Act went into force allowing a tenant who has been renting a council property to purchase it at a discounted price. 

A council property is a property that is owned by local authorities and should not be confused with properties owned by non charitable housing associations or a housing action trust.  This act makes it possible for people with a poor credit history own their own home. 

While it can seem like an uphill battle to obtain a traditional mortgage when you have bad credit, the right to buy mortgages makes it simple to be a new home owner. 

These mortgage options provide substantial discounts to the tenant.  It is not uncommon to get a 50% discount on your right to buy mortgage if you have lived in the council home for at least two years.  Additionally the plan also allows you to receive additional discounts to renovate the existing property.  The type of housing will also determine the percentage of discount you can receive.

 If you are looking to obtain a right to buy mortgage for a flat you may be surprised to find out that after living in a council owned flat for two years you can receive a 44% discount on the mortgage.  Every year beyond the minimum two years will get you an additional one percent with a maximum discount of 70% being allowed.  If you plan to renovate the flat additional discounts may apply.

All other council owned homes in which a tenant has lived in for the minimum of two years can expect a discount of 32% with an additional percent for each year past the minimum.  The maximum discount amount for these homes is 60% and additional discounts being available if you renovate the property.

 Right to buy mortgages have made owning one’s own home a reality for many. People with low credit scores or people with less than great financial situations are able to buy a home at a discounted rate because of the Right to Buy Mortgage Act.

In addition, the payments on the right to buy mortgage are often lower than the standard rental fees making it a great solution for people with poor financial situations. 

If owning your own home is a dream that seems far away, take comfort in the fact that you can make your dreams a reality. 

Become a tenant of a council owned property, stay there for at least two years and cash in on the discounts available for a right to buy mortgage.  For more information on the steps involved in securing a right to buy mortgage go online to find additional information you may need.  If you have already been living in a council home for at least two years, with the right to buy mortgages you can change your status from tenant to owner quicker and cheaper than you may have first thought!