Right To Buy Mortgages
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What are Right to Buy Mortgages? Right to buy mortgages are mortgages made available to Council tenants who are interested in purchasing the properties in which they currently reside. Many lenders offer right to buy mortgages and the process is easy once interested individuals have received permission to purchase their house or flat from their respective Councils. Secure tenants can purchase their homes thanks to a Government scheme that was created back in 1980. Some of the laws governing secure tenants’ Right to Buy have since changed so if you’re interested in pursing right to buy mortgages, the first thing you’ll want to do is ensure you meet the updated regulations. The main change has to do with the length of time you need to be a public sector tenant before you are eligible to purchase. Basically, if you became a secure tenant after January 18, 2005 instead of a 2-year residency requirement, you have to live as a public service tenant for 5 years. However, just because you’ve lived for 5 years as a public service tenant doesn’t mean you’re automatically eligible to become a homeowner. If for example, you have a non-secure tenancy, or you are involved in an ongoing bankruptcy petition, or the home you wish to purchase is more suited for the elderly and you are not yet considered elderly, you may not be entitled to purchase the home or flat in which you currently reside. Since your respective Council confirms your eligibility, it doesn’t make sense to apply for right to buy mortgages until you’ve first contacted your Council. In addition to determining eligibility, your Council also determines the purchase price. As a council tenant, you’re entitled to a discount based on the number of years you’ve been living in the property. The discount also varies depending upon whether you’re living in a house or a flat. Again, it won’t make any sense to apply for your right to buy mortgages until you know with certainty the amount for which you’ll need to apply. While you’re working with your Council to determine eligibility and pricing, it’s important to prepare yourself for the right to buy mortgages application process. Specifically, you’ve got to make sure you have set aside enough funding to cover the costs of solicitor’s fees, a survey, stamp duty, building insurance, and the valuation fees. The lender you choose likely will charge you some amount for arranging the right to buy mortgages so you’ll need to set aside funds for that as well. Lender fees will vary among lenders and you may be able to save money if you take time to comparison shop. The more you can save now when applying for your right to buy mortgages, the more you’ll have left over to pay those other costs associated with home ownership such as utilities, Council taxes and home repairs and maintenance. But don’t let that discourage you because home ownership is a rewarding experience and it’s one that you definitely deserve! If you’re ready to inquire about right to buy mortgages, just click here |