Right to Buy Mortgages
Buying your Council House
The Right to Buy (RTB) Scheme gives a legal right for tenants (who meet certain criteria) to purchase the property they are living in. It applies to properties where the landlord was a council, new town, non-charitable housing association or other public sector body.
What is a Right to Buy Mortgage?
A Right to Buy mortgage provides eligible social housing tenants with the right to buy their home at a discounted rate. Major changes to the scheme were introduced in April 2012 in an attempt to make it more affordable for tenants. The value of the property is based on the ‘open market value’ on the date of the application
ANSWERS
How does a Right to Buy Mortgage work?
A social housing tenant will be offered a discount on the purchase price of their home of up to a maximum of £112,800 in London and £84,600 in the rest of England. Depending on the type of property you live in, there are various discount levels for houses and flats.
- Houses – 35% discount if a public sector tenant for 3 years.(this can be cumulative and across different properties). After 5 years the discount increases by 1% for every extra year up to a maximum of 70% or £84,600 in England and £112,800 in London boroughs (whichever is lower)
- Flats – 50% discount if a public sector tenant for 3 years. After 5 years the discount increases by 2% for every extra year up to a maximum of 70% of £84,600 in England £112,800 in London boroughs (whichever is lower)
- The maximum discount threshold increases each year (on 6 April) by the percentage increase in the Consumer Prices Index (CPI). If there is no increase or a decrease – discounts will not change. The maximum amounts quoted above apply from 6th April 2021
- If the house is sold within the first 5 years, the landlord has the right to ask for repayment of all or part of the discount. In the first year the whole discount is repayable, reducing by one fifth each following year
Who is it for?
If you are a Council or housing association tenant, living in England, you may be eligible to buy your home through the Right to Buy scheme.
What Right to Buy mortgages are available?
You can benefit from the Standard Residential product range with many lenders offering 100% of the Discounted Purchase Price (subject to affordability). Some lenders allow borrowing above the purchase price, against the property equity. This must be spent on home improvements.
“NM Finance were recommended to us by a friend and I can honestly say that I would recommend to anyone seeking a mortgage."
- G Hacker
Why use us for your Right to Buy mortgage?
More choice when making one of the biggest life decisions
We know that we get the best possible results for our customers time and again, because we are a ‘Whole of Market’ Right to Buy mortgage broker. Based on your individual situation we will find the right mortgage or finance for you.
Have the best chance of completing your Right to Buy mortgage and save time too
We speak to lenders day in and day out - it’s our bread and butter. We know how to present unusual cases to mortgage lenders and what information they need to know. Self-employed, adverse credit or straight-forward remortgage, we can do it all.
We do more than just compare rates
We know that we get the best possible results for our customers time and again, because we are a ‘Whole of Market’ mortgage broker. Based on your individual situation we will find the right mortgage or finance for you.
Holding your hand at every step (if that's what you need, of course)
We will walk through every stage of the Right to Buy mortgage process with you, ensuring that you know what’s coming next. No nasty surprises and a robust way of working that you can rely on.
Got Ideas?
Get in Touch and Tell Us Your Plans
New Mortgage Finance is a whole of market specialist Right to Buy mortgage broker, with over 20 years experience. We are not restricted to a panel of lenders and can search the whole of market for you, to ensure you get the best deal when purchasing your council house.
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