Looking For A Right to Buy Mortgage
We will help you buy your home using the “Right to Buy” scheme
Trying to find the best right to buy mortgage? With the right to buy scheme being re-launched in the UK, the variety of right to buy mortgages is increasing and with a lot options and greatly differing rates and fees, it can be really difficult to understand if you are getting the very best right to buy mortgage deal. A reliable mortgage broker can help to save you thousands by searching the entire mortgage market to match your requirements, to find the very best combination of reduced costs and a low interest rates to guarantee you get the overall cheapest right to buy mortgage available.
Right to Buy – The fundamentals
The right to buy scheme was first introduced in 1980. It meant that safe and secure lessees could buy their home with a price cut off the full market value. The discount rate is based on the variety of years the occupant has lived in the property as a public sector tenant. Over 1.5 million individuals have acquired their house under the ‘right to buy’ scheme in the UK. There are lots of right to buy mortgage loan providers in the marketplace– not all these represent good value so it is crucial that you choose the right one. Contact a reputable mortgage broker as quickly as possible. The Right to Buy discount cap has actually recently been raised to ₤100,000 which will help occupants staying in more pricey parts of the UK to get their property utilizing the Right to Buy scheme. People living in London, may be able to re-evaluate purchasing their London house or flat utilizing the Right to Buy scheme.
Action 1 (Eligibility) – Do you have the right to buy your rental home?
Right to buy schemes operate totally for lessees who have been renters in the council property for at least 2 years. It is targeted at long standing public lessees, with the right to buy discount rate increasing in proportion to the years that lease has been paid. Once you meet the minimum length of time, which is presently set at 2 years in a council property for tenancies that started prior to 18 January 2005, you have the ability to acquire the property at a rate that is lower than market price. If the tenancy began on or after 18 January 2005 (or after 12 October 2004 in Northern Ireland) then the minimum length of time is 5 years. A right to buy mortgage scheme is ideal for people who have stayed in their council residence for that time, work full time and plan to stay living in the home for the foreseeable future. Normally you will deserve to purchase your residence if …
- District / Local Authority Council Owned House
- London Borough Council House
- Non-charitable Housing Association
- Registered Social Landlord
- Housing Action Trust
If you can purchase your house making use of the Right To Buy Council Scheme you will be entitled to exactly what is understood as “Right to Buy Discount”. You will have to contact the organization you are currently renting the home from to find the exact details of the right to buy price cut you could be entitled to.
Action 2 (Validating Scheme Availability)– Availability and price cut rates
If you believe you are qualified for the right to buy scheme it is good practice to call your housing organization to request information of the right to buy scheme, and what the current discount is. Generally the maximum discount rate varies from ₤16,000 to ₤38,000 for both flats and houses, depending on your neighborhood authority. If you are happy with this you can continue by asking for a property evaluation. The discounts available vary if you are buying your housing association property, which is a slightly different scheme and you will need a Right to Buy Mortgage.
Action 3 (Getting Right to Buy) – We will do this paper work for you
The next step is to send in an official letter and form RTB1 (notice to council that you are thinking about buying your present council residence) specifying that you are planning to apply for the right to buy. Once your neighborhood authority receive this they have a pre-determined time period to consider your application and if your are eligible to get your current home they will write back and notify you that you do can get your home. (This from is called an RTB2).
Action 4 (Valuation) – The housing company will be required to value your property
It usually takes around 3 months to get a valuation of your home from the council / housing association. The housing organization / council will advise their own or an independent company to value your property. If the home has actually not been valued within 12 weeks of providing the RTB1, we will issue the council with an RTB6 which is a delay notification this will quicken the process of your council home been valued.
Step 5 (The Offer) – Property evaluation minus discount offered
As soon as the home has been valued the council will issue you with a paper which is called a Section-125 which is essentially the open market appraisal (OMV), it will then have the price cut amount (this will differ from area to area) and lastly exactly what you can purchase the council house for. You have 12 weeks to make a decision if you wish to purchase the council property or not, when these 12 weeks has expired the council can extend your time to choose but this will depend on your regional authority. The optimum price cut you can get will probably be 32% if your property is a house or 44% if your property is a flat/maisonette.
Action 6 (Mortgage) – Protecting a right to buy mortgage offer
Most Right to Buy Mortgage lenders that lend on right to buy properties will lend up to 95% or 100% of the RTB Rate. When computing your loan to value they will utilize the Open Market Evaluation (OMV ). There are also some Right to Buy Mortgage Lenders that will permit you to borrow more than the Right to Buy Cost. The right to buy mortgage lenders work on the OMV and they can lend approximately 85% of the OMV. There are hundreds of right to buy mortgage offers available, and it can be challenging to find the right one for you. A trusted mortgage broker will do all this for you, to make sure you are getting the very best right to buy mortgage offer. When sourcing a right to buy mortgage deal, we will look at: What portion of your home value the loan provider will lend; Will they lend you 100 per cent of the affordable right to buy purchase price or do you still have to put a deposit down? Whether you choose a fixed or discounted rate offer? Are there ‘early repayment charges’ for coming out of the deal early? Whether there are any charges, as these can add a substantial sum to the total cost of a mortgage deal so it is very important to consider the charges. We will search for the best right to buy mortgage offer that suits your requirements and offers the very best mix of reduced fees and a low rate of interest. Along with this there are a variety of Council Right To Buy mortgages especially made for right to buy homes where there might be various other problems. If you have bad credit or can not verify all of your earnings there are still lenders available.
Note if you are not totally employed:- Not all eligible right to buy property are lived in by full time employed people, if you are not full time employed but would still like to exercise your right to buy we can help you by looking at other specialist lenders.
Keep in mind if you have less than perfect credit history:- As with the majority of mortgages credit history is a factor the mortgage loan providers take in to account when determining your mortgage viability. If your credit history is less than perfect, but you would still like to exercise your right to buy we can help you by taking a look at various other expert loan providers for people with adverse credit history in the exact same method as any other consumer. ‘The general cost for comparison is 5.89% APR. The actual rate offered will depend upon your situation.’
Right to buy mortgage terms
The essential figures when looking at right to however mortgage quotes are:.
- OMV – This is the “Open Market Value” of your property. eg the selling price which would be realistically achieved if the property was put up for sale.
- RTB Discount – The discount being applied to the OMV of the property.
- RTB Price – The discounted price you will have to pay to buy the property.
Other kinds of mortgages which could be appropriate:
We are extremely experienced UK mortgage brokers, we have access to the whole of the market to source and secure the very best mortgage deals for our clients. If a right to buy mortgage is not suitable for you, or you wish to look at other mortgage products please ask us about 95% LTV mortgages, 90% mortgages and our specialist mortgages for first time buyers. Please contact us for an assessment and mortgage match, and we can look for the best mortgage deals for you to make certain you get the most inexpensive mortgage.
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