What we cover in this guide
- Right to Buy Mortgages
- Read our Right to Buy guide
- Try our Right to Buy calculator
- What is the Right to Buy scheme?
- How much is the Right to Buy discount?
- Am I eligible for the Right to Buy scheme?
- What is preserved Right to Buy?
- Do I need a deposit to buy my council house?
- How do I apply for a Right to Buy mortgage?
- Right to Buy Mortgage Brokers
- Frequently asked questions
Right to Buy Mortgages
When buying your property, you will have access to virtually the same mortgages as any other borrower. Lenders will assess you in the same way as they would assess anyone else.
The amount lenders will be willing to lend and the interest rate you will be charged will depend largely on your loan-to-value ratio. This will be determined by the level of discount and any deposit you are able to provide. Other criteria such as your credit history and current income will also apply.
Can I apply for a Right to Buy mortgage with a partner?
Yes, joint applications are possible for Right to Buy mortgages.
Usually, the named parties on a mortgage will be the same as on the Right to Buy paperwork. In turn, the same for the property title deeds. However, if the paperwork is in your name only, it may be possible to arrange the mortgage in joint names.
Can I get a Right to Buy mortgage if I am retired?
It could be that Right to Buy has not been an option for you until later in life. Or it may be that your circumstances have not been right for you to look into buying your home. Either way, it is possible for many people to get a Right to Buy mortgage even if they are retired.
Defining the term ‘retired’ is the important factor here. It can be a very broad term that doesn’t accurately describe your complete circumstances. It may imply someone of a mature age, and this can mean that certain lenders will not be able to help.
Some lenders however operate with more flexible criteria. These will consider several other factors aside from age, such as affordability. Everyone’s situation is unique, and you could still get a Right to Buy mortgage even if you are retired.
Can I get a Right to Buy mortgage if I am self-employed?
Attitudes to the self-employed have changed positively over the years. Self-employment has many forms. Many lenders can make allowances for income that may be less predictable or more difficult to quantify.
As ever, the key to getting a mortgage is affordability. Lenders assess self-employed people in the same way as individuals in standard employment: looking at income together with outgoings over a period of time.
Other Right to Buy FAQs
- Can I rent out my Right to Buy property?
- Can I get Right to Buy mortgage with bad credit?
- Can I sell my Right to Buy property?
- Can I remortgage my Right to Buy property?
- Right to Buy alternatives
When looking for a Right to Buy mortgage, only residential options are available, although during the clawback period the council may allow you to rent out the property. Always check with them before making arrangements. Once the clawback period is complete you can use the property as you wish.
We have assisted many Right to Buy purchases for those with bad credit. Whilst you may have more limited choices, it is not impossible for all. It is just knowing where to look and how to approach lenders.
At any time, you can sell your property after you buy it. Bear in mind that you may have to repay some or all the discount. This will apply if you sell within the period of the Right to Buy scheme. Typically, this is within the first 5 years.
Yes, it’s possible to remortgage the property. The difference is that you need to consider the clawback period. The council or housing association is likely to register a charge for the discount. If still in place additional legal work could be required.