Right To Buy Mortgages

The 1981 Housing Act allows council tenants to buy the property they live in from the local authority. Most Council Tenants have the "Right to Buy" their home. The "Right to Buy" means you can purchase your home from a local authority, a non-charitable housing association or a housing action trust. Usually a right to buy mortgage will cost less than on the open market because tenants can usually obtain a discount on the price they are purchasing the property for

Under the right-to-buy scheme council tenants are entitled to a 32% discount on the value of their house after they have lived in the property for two years followed by a further 1% deduction for each additional year up to a maximum of 60% of the properties value.

For flats the available discount rises to 70%. To qualify for a Right to buy Mortgage Loan you must be the legal tenant of the property you wish to purchase. You must also have been a tenant of this Council or another council landlord for at least two years. You may be entitled to a discount off the purchase price of your home. The amount of discount depends on how long you have been tenant in the Council House or other council landlord as well as the type of dwelling you are living in.

All individuals looking at this type of purchase should obtain professional advice from an independant financial advisor.

Right To Buy Mortgages :