The Right to Buy (RTB) scheme has helped thousands of council tenants in London become homeowners, offering them the opportunity to purchase their rented homes at a discounted price. However, with recent policy changes and the complexities of securing a mortgage, working with a Right to Buy mortgage broker in London can make all the difference.
In this guide, we’ll cover everything you need to know about Right to Buy mortgages, the latest updates to the scheme, and how an experienced mortgage broker near you can help you secure the best deal.
The Right to Buy scheme allows council tenants to buy their homes at a discount, depending on how long they have been renting. Introduced in 1980, it was designed to help people get on the property ladder while reducing the government’s role as a landlord.
However, as of November 2024, the maximum discount in London has been reduced to £16,000—a drastic cut from the previous cap of £136,400. This change has sparked debate, as it significantly affects affordability for tenants looking to buy their homes.
The main reason behind this reduction is the need to protect social housing stock, as London councils struggle to replace sold properties and combat homelessness.
Speak with a Right to Buy mortgage broker in London and secure the best deal.
Contact us nowNot every council tenant is eligible for Right to Buy. To qualify, you must:
Certain properties, such as those adapted for disabled residents or located in retirement housing, may be exempt from Right to Buy. You can check full eligibility criteria on.
Navigating the mortgage process for a Right to Buy home can be complex. With the discount affecting deposit requirements, different lender policies, and potential credit score issues, having a specialist mortgage broker can be invaluable.
Here’sHere’s how a Right to Buy mortgage broker in London can help:
Many mainstream lenders have strict criteria for Right to Buy mortgages. A specialist broker can access deals not available directly to the public, helping you secure the best interest rates and terms.
One major advantage of Right to Buy is that your discount counts as a deposit in many cases. However, some lenders may still require an additional cash deposit. A mortgage broker will assess your financial situation and find lenders with the most favourable deposit requirements.
If you have credit issues, getting a mortgage can be challenging. Some lenders specialise in bad credit Right to Buy mortgages, and an experienced broker can guide you to the right options.
From gathering paperwork to dealing with lenders and solicitors, a mortgage broker will handle the process for you, ensuring that everything runs smoothly and efficiently.
The UK government has been making adjustments to the Right to Buy scheme to address concerns about the loss of social housing. Some of the key proposals include:
These changes make it even more important to act quickly if you are eligible and considering Right to Buy.
If you’re thinking about purchasing your council home through Right to Buy, follow these steps:
Despite recent changes, Right to Buy remains one of the best ways for council tenants to become homeowners. However, with discounts reduced and new restrictions potentially on the way, it’sit’s important to get professional advice.
A Right to Buy mortgage broker in London can help you navigate the mortgage process, ensuring you get the best deal and make the most of your opportunity to own your home.
Thinking of buying your council home? Get in touch with a specialist mortgage broker today!
A Right to Buy mortgage is a type of home loan specifically designed for council tenants purchasing their home under the Right to Buy (RTB) scheme. Many lenders allow your RTB discount to be used as a deposit, reducing the upfront cash needed.
In many cases, your Right to Buy discount acts as the deposit, so you may not need additional savings. However, some lenders still require a small deposit or may offer better rates if you contribute your own funds.
Yes, many lenders accept the Right to Buy discount as a substitute for a cash deposit. This means you may not need to provide additional funds upfront, though some lenders might still require a personal contribution.
What should I consider before applying for a Right to Buy mortgage?
As of November 2024, the maximum discount in London has been reduced to £16,000 (down from £136,400). The exact amount depends on how long you’ve been a tenant and the type of property.
Yes, some lenders offer bad credit Right to Buy mortgages. A specialist mortgage broker can help you find lenders willing to approve your application, even if you have CCJs, defaults, or a low credit score.
You need to fill out an RTB1 application form and submit it to your local council. They will assess your eligibility and provide a valuation of your home.
The primary risks include potential scams or using unregulated lenders. Always verify that the lender is FCA-approved and reputable.
The process usually takes between 3 to 6 months, depending on how quickly your council processes the application and how smoothly your mortgage application and legal paperwork go.
If your application is rejected, your council must provide a reason. You may be able to appeal or reapply if circumstances change. A mortgage broker can also help assess whether your finances or credit history affected your chances.
Yes, but if you sell within 5 years, you may have to repay a portion of the discount. The amount decreases each year.
The timeline varies depending on the lender and the complexity of your application, but many online platforms provide quicker approvals compared to traditional methods.
Some lenders offer Right to Buy mortgages for applicants with bad credit, though interest rates might be higher. Consulting a mortgage advisor can help you find the right option.
No, not all mortgage lenders offer Right to Buy mortgages. A specialist mortgage broker can help you find a lender that understands the scheme and offers the best rates.
Using a Right to Buy mortgage broker in London can save you time and effort. Brokers have access to specialist lenders, can help secure better rates, and guide you through the entire process, especially if you have a unique financial situation.
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