Are you interested in UK right to buy mortgage schemes? If you are a UK council house resident looking to buy your home, you may be able to get a right to buy mortgage to enable you to do so. The follwing page discusses right to buy mortgages to help you understand what they are and how you can use them.
What Is A Right To Buy Mortgage?
You might not be aware but you might be eligible to get a council house mortgage. A council house mortgage or a right to buy mortgage, may be granted to tenants who are currently renting a home from a local authority. However, there are certain required qualifications and criteria that put you in the position to apply for a right to buy mortgage. Before outlining the criteris, let us examine how the right to buy mortgage process works.
When a tenant applies for a right to buy mortgage, a valuer is sent to asses the house and put a corresponding market value on it. This is a procedure that will take around three months. If the tenant has the ability to fulfill the criteria and the right to buy mortgage is approved, the tenant may be able to purchase the house at an discounted rate. For example, a house that is valued at £150,000 may be bought by the tenant for only £100,000.
The tenant can borrow 100% of the council’s valuation of the property. In the above-given example, such a discount on the value of the property may enable the tenant to buy furniture or make renovations. The right to buy mortgage enables the tenant to be in a position where he/she is financially stronger. In addition to the financial benefits one can have from a right to buy mortgage, the successful applicant is no longer a tenant but a homeowner.
Right To Buy Mortgage Requirements
The following dicusses the requirements of the tenant in order to meet the right to buy mortgage qualifying criteria.
Firstly, it is a requirement for tenants to have been residing in the council house for a minimum of two years.
Secondly, the house should be a district council house, a house belonging to a Housing Action Trust, or a London Borough council house. What is good about this is that you can apply even when you have a bad credit rating. For example, you may have been bankrupt, but you may still qualify for the right to buy mortgage scheme. All you need to do is to consult a professional mortgage office that specialises in right to buy applications.
Right To Buy Mortgages And Repayment
As with any other loan, you are also required to pay interest on the a right to buy mortgage. In other words, the more money you borrow, the more money you will have to pay back. Remember, it is best to make use of common sense whenever you are deciding upon the amount of money you are able to borrow and realistically pay back. A right to buy mortgage should help you to improve your financial situation and not worsen it.