A right to buy mortgage is a financial arrangement available to council tenants or housing association tenants who have been living in a property provided by the local authority or a housing association. This scheme allows eligible tenants to purchase the property they are currently renting at a discounted price.
Eligibility: To qualify for a right to buy mortgage, you must typically have been a public housing tenant for a certain number of years (usually ranging from three to five years) and be a secure or assured tenant.
Discounted Purchase: The key feature of the right to buy scheme is that you can buy the property you’re living in at a price lower than the market value. The longer you’ve been a tenant, the greater the discount you may receive, up to a certain maximum limit.
Securing a Mortgage: Once you decide to exercise your right to buy, you’ll need to secure a right to buy mortgage to cover the cost of the discounted purchase. These mortgages are specifically designed for this purpose and may offer more favorable terms and conditions to make it more affordable for tenants to buy their rented property.
Ownership: After purchasing the property, you become the owner, and it is no longer owned by the local council or housing association. You are responsible for the property’s maintenance, mortgage repayments, and other associated costs.
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Your home may be repossessed if you do not keep up repayments on your mortgage.
