If you’re thinking about climbing up the property ladder, then we should congratulate you – you’ve made an important decision that can influence your future in a great way. However, it’s important to be sober about such decisions, especially if you feel your finances or your financial records may not be ideal.
Thankfully there are many programmes (brought about by government initiatives and private institutions) that make it easier on the average citizen to realise their dreams in terms of buying property. One of these programmes is the Right to Buy Mortgage; a great help for many. Here’s everything you need to know about the Right to Buy mortgage – and how it can benefit you.
What’s Right to Buy?
It was introduced in the 1980’s and is often associated with the government of Margaret Thatcher. It declined in popularity, but since some changes were made a little more than a decade ago, it has once again surged in popularity. In essence, the person who would normally not be able to afford a mortgage now has a chance to get a discount, thanks to government backing – and this makes it possible for a lot more people to get a mortgage.
Are you eligible?
If you have spent at least 3 years as a public sector tenant, then you will be eligible. Mind you, those 3 years do not have to be consecutive – they can be intermittent. There are, however, other requirements, such as not having any debts and/or legal issues regarding outstanding debts.
Ownership with council
If you own a house or flat together with the council, you are unfortunately not eligible to apply for the Right to Buy mortgage. In this case, it may be wiser to ask your landlord to buy a larger share of the home.
The joint application
You are able to submit a joint application, provided the other person is your significant other, your spouse, or your civil partner, or someone who is in a tenancy agreement with you.
The discount rates are very favourable – up to 35% for a house and 50% for a flat!
It should also be noted that if you are housing association tenant, you may still have the right to buy – whilst most people in such situations do not currently have this, if you were a secure council tenant and if the home was transferred to another landlord whilst you were living there, then you should have a ‘preserved right to buy.’ You should still have the same rights then and would be able to have the right to buy like other legible persons. It’s a great scheme, so make sure to use it to your advantage.
AS A MORTGAGE IS SECURED AGAINST YOUR HOME OR PROPERTY, IT COULD BE REPOSSESSED IF YOU DO NOT KEEP UP THE MORTGAGE REPAYMENTS.
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