Right to Buy Mortgages

Understanding “Right to Buy” mortgages is crucial for any council or housing association tenant looking to make their property purchase dream a reality. These specific mortgage products were designed as part of the UK government’s Right to Buy scheme, allowing eligible tenants to buy their homes at significant discounts. With a vast array of financial institutions offering these mortgages, it’s important to grasp the essential aspects of these loans, including eligibility, the application process, discounts, and potential pitfalls. This article aims to provide a comprehensive guide on “Right to Buy” mortgages, aiding you in making informed decisions about home ownership.

What is a Right to Buy mortgage?

A Right to Buy mortgage is a mortgage product designed specifically for tenants who use the right to buy scheme. Like other types of mortgages, a lender loans the money to buy the property, and the borrower repays the loan, with interest, over a specified period of time. In this case, the loan amount would be for the discounted purchase price of the home, not its full market value.

What is Right to Buy?

“Right to Buy” is a government scheme in the United Kingdom that enables most council tenants, and some housing association tenants, to buy their homes at a discount. It was introduced in 1980 to help public sector tenants buy the home they were living in, providing a path to homeownership that might otherwise be out of reach.

The discount available through the “Right to Buy” scheme is based on several factors, including:

• • The amount of time you have been a tenant with a public sector landlord

• • The type of property you’re buying (whether it’s a flat or a house)

• • The value of the home

However, there is a maximum cap on the discount that varies depending on where in the UK you live.

Eligibility for the “Right to Buy” scheme requires you to have been a public sector tenant for at least three years (not necessarily consecutively). There are some other conditions, too, like the property being your only or main home.

It’s important to note that even though the “Right to Buy” scheme can make home ownership more accessible, it also comes with the responsibilities and potential financial risks associated with owning a home, such as maintenance and repair costs. It’s advisable to carefully consider these implications before choosing to buy your council home.

Do I qualify for Right to Buy?

The “Right to Buy” scheme has certain eligibility criteria that you’ll need to meet to qualify. Here are the general eligibility requirements:

1. 1. Public sector tenant: You need to be a secure tenant in a council property or a housing association tenant. Some tenants of non-charitable housing associations might also qualify.
   2. Tenancy duration: You should have spent at least 3 years as a public sector tenant. These years do not need to be consecutive.
   3. Type of property: The property you want to buy must be your only or main home. It should also be self-contained, meaning it doesn’t share rooms with another property.
   4. Legal restrictions: You must not be subject to legal issues like bankruptcy proceedings, possession orders, or unfulfilled credit agreements.
   5. Arrears: You should have no outstanding arrears or breach of the tenancy agreement.

Please note that these are general guidelines, and specific criteria may vary. Also, even if you meet the eligibility criteria, certain properties may not be available for purchase through “Right to Buy” if they are deemed particularly suitable for elderly people or if the property is due to be demolished.

How can I get the most Right to Buy discount?

Maximising your “Right to Buy” discount is largely dependent on a few factors within your control and several that aren’t. Here are some general steps you could take to ensure you get the most out of the scheme:

Tenure: Longer tenancies receive larger discounts. For council house tenants, the discount starts at 35% for those who’ve been public sector tenants for 3 years and increases by 1% for each additional year of tenancy. For council flat tenants, the discount starts at 50% and increases by 2% for each extra year of tenancy. If you have the ability to wait and accrue more years of tenancy, you can earn a higher discount.

Correct Tenancy Records: Ensure all your years of public sector tenancy are properly recorded and accounted for. This includes any time you’ve spent in different homes or with different landlords.

Valuation of the Property: The discount is a percentage of the property’s value, so if you feel the value assessed for your home is too high, you can challenge the valuation. A lower valuation could mean you pay less, even with the same percentage discount.

Knowing the Rules: Keep up to date with the latest “Right to Buy” rules and regulations. The scheme has changed several times over the years, and the discount rates or maximum cap could be increased in the future.

Financial Advice: Consider getting advice from a financial advisor or a housing counsellor who can guide you through the process and help you make the most financially sound decisions.

What discounts are available?

The discounts available through the UK’s “Right to Buy” scheme vary based on several factors, including the type of property, the length of your tenancy, and the value of your home. The general structure for discounts is as follows:

For Houses: The discount starts at 35% if you’ve been a public sector tenant for between 3 and 5 years. After 5 years, the discount increases by 1% for each additional year of tenancy, up to a maximum of 70% or the monetary cap set by the government, whichever is lower.

For Flats: The discount starts at 50% if you’ve been a public sector tenant for between 3 and 5 years. After 5 years, the discount increases by 2% for each additional year of tenancy, up to a maximum of 70% or the monetary cap set by the government, whichever is lower.
Please note the maximum monetary cap for the discount can vary depending on where in the UK you live. The cap is £82,800 for most parts of England and £110,500 in London boroughs.

How do I apply for Right To Buy?

Applying for the “Right to Buy” scheme in the UK involves the following steps:

1. 1. Check Eligibility: Ensure you meet the eligibility criteria for the scheme. You must be a council tenant or some housing association tenants, have a secure tenancy, and have spent at least 3 years as a public sector tenant, among other requirements.
   2. Application Form (RTB1): Download and complete the Right to Buy application form, known as RTB1, from the UK Government’s official website. The form requires details about you, your property, and your tenancy.
   3. Submit the Form: Send the completed form to your landlord. Keep a copy of the completed form and record the date you sent it.
   4. Landlord Response: Your landlord must reply to your application within a set period (usually 4 weeks), confirming whether or not you have the Right to Buy. If your home is not eligible, they must explain why.
   5. Property Valuation: If you’re eligible and your home qualifies, your landlord will arrange for a valuation of your home and offer it to you at a price reflecting any discount you’re eligible for.
   6. Offer Notice (S125 Notice): You’ll receive an Offer Notice (also known as an S125 notice), which will tell you the price the landlord is willing to sell at, your discount, and a description of the property, including any known structural defects.
   7. Consider the Offer: You have a certain period (usually 12 weeks) to accept the offer. If you disagree with the property valuation or discount calculations, you can ask for an independent valuation from the district valuer.
   8. Acceptance: If you decide to proceed, you would accept the offer and secure a mortgage if needed. You would then hire a solicitor to handle the legal aspects of the purchase.
   9. Completion: Once everything is agreed upon, you can proceed with the purchase and the property will be yours once the sale is completed.

Note, the process can be quite complex, and it’s advisable to seek independent legal and financial advice before deciding to purchase your home under the Right to Buy scheme. Always consult the most up-to-date information on the UK Government’s official website.

Can I get a Right to Buy mortgage with my partner?

Yes, you can apply for a “Right to Buy” mortgage with your partner. However, there are a few conditions that must be met:

1. 1. Joint Tenancy: The first requirement is that your partner must be a joint tenant. This means that they are also named on the tenancy agreement for the property you are seeking to buy.
   2. Living Together: It’s usually required that you and your partner have been living together in the property for at least a year prior to applying for the “Right to Buy” scheme. This rule also applies to other family members who wish to join in the application.
   3. Financial Criteria: Like any mortgage, both you and your partner will need to meet the lender’s affordability criteria. This means you’ll need to demonstrate that you can afford the mortgage repayments, taking into account your income, expenditure, and any existing debts.

If you and your partner meet these criteria, then it’s possible to jointly apply for a “Right to Buy” mortgage. It’s recommended to seek advice from a mortgage advisor or broker to understand the process and ensure you’re getting a mortgage that suits your circumstances.

What are the pros and cons of “Right to Buy” mortgages?

“Right to Buy” mortgages, like any financial scheme, come with their own set of pros and cons. Here are some to consider:

Pros of “Right to Buy” Mortgages:

1. 1. Home Ownership: The scheme provides an affordable route to homeownership for long-standing public sector tenants.
   2. Discounts: Tenants are offered significant discounts on the market value of their homes, which can make it much more affordable to buy.
   3. Capital Appreciation: If property prices rise, you could benefit from increased equity in your home.Flexibility: Owning your home gives you more freedom and flexibility to make alterations or improvements to the property.

Cons of “Right to Buy” Mortgages:

1. 1. Costs of Home Ownership: Owning a home comes with additional costs that aren’t present when renting. These can include maintenance and repair costs, insurance, and property taxes.
   2. Financial Risk: If property prices fall or if you struggle to keep up with your mortgage payments, you could risk losing your home.
   3. Reselling Restrictions: If you sell the property within a certain time period (usually 5 years ), you may have to repay some or all of the discount. You also need to offer it to your old landlord or another social landlord at the market price if you wish to sell within 10 years.
   4. Limited Mobility: If your circumstances change and you need to move, you may find it more difficult and expensive to do so than if you were renting.
   5. Affordability Issues: While the scheme makes homeownership more accessible, not everyone will qualify for a mortgage. Affordability checks and credit checks still apply.

Can I use the “Right to Buy” scheme if I’m a council or housing association tenant?

Yes, if you are a council tenant or, in some cases, a housing association tenant, you may be able to use the “Right to Buy” scheme. The eligibility requirements for the scheme:

• • You must be a secure tenant at a council property or at some housing association properties.

• • You should have been a public sector tenant for at least three years (although these years don’t need to be consecutive).

• • The property must be your only or main home and be self-contained.

• • You and any joint applicants must not have any legal issues such as bankruptcy proceedings, possession orders, or unfulfilled credit agreements.

• • You must have no outstanding arrears or breaches of your current tenancy agreement.

Are there any hidden fees or costs associated with the “Right to Buy” mortgages?

With any mortgage, including a “Right to Buy” mortgage, there are various costs and fees that may not be immediately obvious. It’s important to be aware of these when considering whether to apply. These could include:

1. 1. Mortgage Fees: These include arrangement fees, booking fees, and potentially valuation and surveyor fees. Some lenders may also charge a mortgage account fee for setting up, maintaining, and closing down your mortgage account.
   2. Legal Fees: You’ll need to hire a solicitor or licensed conveyancer to handle the legal work of buying a home. Their fees can include searches, land registry, and transfer of funds.
   3. Stamp Duty: This is a government tax paid on homes costing £125,001 or more. However, first-time buyers may be exempt from paying Stamp Duty on the first £300,000 for properties worth up to £500,000.
   4. Home Insurance: Buildings insurance is usually a requirement of mortgage lenders, and while it’s not a hidden cost, it is an ongoing cost of home ownership that’s worth considering.
   5. Mortgage Broker Fees: If you use a mortgage broker to find a mortgage, they may charge a fee or commission.
   6. Ongoing Costs: These include maintenance and repairs, council tax, utility bills, and potentially service charges and ground rent if you’re buying a leasehold property.
   7. Early Repayment Charges: If you decide to pay off your mortgage early or switch to a different mortgage product, you may face early repayment charges.

Finally, sell your “Right to Buy” property within a certain timeframe. You might have to repay some or all of the “Right to Buy” discount, and there may also be certain restrictions on who you can sell to within this period.

What happens if I sell my property after buying it?

If you choose to sell your property after buying it with a “Right to Buy” mortgage, there are a few things to keep in mind.

1. 1. Repaying the Discount: As per the rules set, if you sell your property within the first five years after buying it through the “Right to Buy” scheme, you will have to repay some or all of the discount. The amount to be repaid decreases over these five years. In the first year, you would have to repay all of the discounts, reducing by 20% each year after that until the fifth year.
   2. Offering to Former Landlord: If you decide to sell your property within 10 years of buying it through the scheme, you have to first offer it to either your former landlord or to another social landlord in your area at its current market value.
   3. Selling on the Open Market: If your former landlord or another social landlord doesn’t want to buy it within 8 weeks, you can sell it on the open market.
   4. Paying off the Mortgage: When you sell your property, you will need to pay off any remaining mortgage. If your property has increased in value, you may make a profit. However, if your property value has gone down, you could potentially make a loss.

For the most accurate and up-to-date information, you should check the official UK Government website or consult with a housing advisor.

Right to Buy Mortgage Lenders

Several lenders in the UK offer mortgages to people buying their homes through the “Right to Buy” scheme. Many high-street banks, building societies, and specialist lenders provide these mortgages. It’s important to note that lenders will have their own criteria and may not lend to all applicants. Some possible “Right to Buy” mortgage lenders could include:

Barclays: Offers a range of mortgage products, including for “Right to Buy”.

Halifax: As part of Lloyds Banking Group, Halifax also provides “Right to Buy” mortgages.

Nationwide Building Society: This building society also offers mortgages for “Right to Buy”.

NatWest: Provides various mortgage products, including “Right to Buy” mortgages.

Santander: Offers a range of mortgages that include “Right to Buy”.

HSBC: Known for its comprehensive range of financial products, including “Right to Buy” mortgages.

Leeds Building Society: Offers mortgages to “Right to Buy” applicants.

Please note that lending criteria, interest rates, and terms can vary significantly between lenders. Some may only offer “Right to Buy” mortgages through brokers. Also, it’s important to bear in mind that eligibility for a “Right to Buy” mortgage will also depend on your personal circumstances, such as your income, credit history, and employment status.

Affordability criteria

When applying for a “Right to Buy” mortgage, lenders will assess your affordability based on a variety of factors. This is to ensure that you’re able to manage the monthly repayments comfortably without over stretching your finances. The key criteria include:

Income: Your income, whether from employment, self-employment, pensions, or other verifiable and sustainable sources, will be assessed to ensure it’s sufficient to cover the mortgage repayments after your other living costs are taken into account.

Expenditure: Lenders will consider your regular outgoings, including other loan repayments, credit card bills, utilities, food, transport, and living costs, to ensure you have enough disposable income to cover the mortgage repayments.

Debt: If you have existing debts, lenders will take these into account when assessing your affordability. High levels of existing debt may affect your ability to secure a mortgage.

Credit History: Lenders will check your credit history. If you have a history of failing to repay debts or have had other financial issues, such as bankruptcy, it could affect your ability to secure a mortgage.

Loan to Value (LTV): The amount you wish to borrow as a percentage of the property’s value (after the Right to Buy discount has been applied) also factors into a lender’s decision.

Interest Rate and Term: The proposed interest rate and term of the mortgage will also impact affordability. Longer terms or lower rates can reduce monthly repayments but increase the total amount repaid over the life of the loan.

Future Changes: Lenders will also consider potential future changes that could affect your ability to repay, such as interest rate increases, retirement, or changes in your personal circumstances.

Each lender will have their own criteria and scoring systems, so it’s a good idea to speak to a mortgage advisor or broker to understand your options better. They can help guide you through the process, ensuring you apply for mortgages you’re likely to be accepted for and that are suitable for your financial situation. As always, for the most accurate and up-to-date information, consult with a professional advisor or the official UK Government website.

Do I need a deposit to buy my council house?

The need for a deposit when buying your council house through the “Right to Buy” scheme in the UK can depend on several factors, particularly the mortgage lender’s policies and the level of discount you’re eligible for.

The “Right to Buy” scheme often provides substantial discounts on the purchase price of the property based on how long you’ve been a tenant. In many cases, mortgage lenders will accept the discount you receive on the property as a substitute for the deposit. This means that, in some circumstances, you may not need to provide an additional cash deposit.

However, this isn’t always the case. Some lenders may still require a deposit, particularly if there are any credit issues or if the lender assesses the property to be of higher risk. Also, if the mortgage amount you’re requesting exceeds the discounted purchase price (for example, to cover home improvements), a deposit may be required.

It’s essential to check the requirements with potential lenders or consult with a mortgage broker to fully understand what you’ll need to provide. They will be able to guide you based on your specific circumstances and the current lending market.

Can I use my discount towards a Right to Buy mortgage?

In many cases, yes, you can use your “Right to Buy” discount as a deposit towards your mortgage. This means that if you’re eligible for a substantial discount on the purchase price of the property, you might not need to provide an additional cash deposit.

The discount is calculated based on how long you’ve been a tenant with a public sector landlord, the type of property you’re buying (a flat or house), and the value of your home. The more years you’ve been a tenant, the larger the discount will likely be.

Most lenders will accept the “Right to Buy” discount as a deposit, essentially treating it as equity in the home. However, policies can vary between lenders, and some may still require a cash deposit, especially if there are credit issues or other risks involved. Also, if the mortgage amount you’re requesting exceeds the discounted purchase price (for example, to cover home improvements), a cash deposit may be required.

Alternatives to a right to buy mortgage

The “Right to Buy” scheme is a popular choice for many public housing tenants due to the substantial discounts it can offer, but it’s not the only option for purchasing a home. Here are some alternatives to consider:

Shared Ownership: Shared ownership schemes allow you to buy a portion of a property (usually between 25% and 75%) and pay rent on the remaining share. Over time, you can increase your share until you own the property outright. These schemes are usually operated by housing associations.

Help to Buy: The UK government’s Help to Buy scheme can help first-time buyers purchase a new build home. It offers an equity loan where the government lends you up to 20% (or 40% in London) of the cost of a newly built home, so you’ll only need a 5% cash deposit and a 75% mortgage to make up the rest.

Private Purchase: If you have sufficient savings or access to credit, you could consider buying a property on the open market. You may need a larger deposit than with other schemes, but it gives you more choice over the location and type of property.

Rent to Buy: Rent to Buy is a government scheme designed to ease the transition from renting to buying a home by providing subsidised rent. After a certain period of renting, tenants have the option to purchase the property or move out.

Starter Home Initiative: This government scheme offers a minimum of 20% discount off the market price for first-time homebuyers between the ages of 23 and 40.

Lifetime ISA: A Lifetime ISA can be used to save for a deposit for your first home (or for retirement). The government will add a 25% bonus to your savings, up to a maximum of £1,000 per year.

These are just some of the alternatives to a “Right to Buy” mortgage. Each has its own eligibility criteria and features. It’s recommended to seek advice from a housing advisor or financial advisor to understand which options best suit your circumstances.

Can I add additional buyers to a Right to Buy mortgage?

Yes, you can potentially add additional buyers to a “Right to Buy” mortgage, but there are some restrictions:

Family members: You can add family members who have lived with you for at least the past 12 months. This is especially common when a tenant wishes to add their spouse or adult children to the mortgage.

Joint tenants: If you’re a joint tenant of the council property, the other tenant(s) would typically be included in the “Right to Buy” process and would become joint owner(s) with you.

However, adding additional buyers can sometimes complicate the application process, as all buyers must meet the lender’s criteria. This includes income assessments, credit checks, and more. If the added buyer has poor credit history or unstable income, it could impact your ability to secure a mortgage.

Can I rent out my property?

Renting out a property purchased under the “Right to Buy” scheme is generally not allowed in the initial years following the purchase. The primary purpose of the “Right to Buy” scheme is to allow tenants to buy their home to live in, not to rent it out.

If you intend to rent out your “Right to Buy” property within the first five years of owning it, you would need to first repay some or all of the discount you received under the scheme.

The amount to be repaid if you sell or rent out within 5 years is as follows:

• • 100% of discount in the first year

• • 80% of discount in the second year

• • 60% of discount in the third year

• • 40% of discount in the fourth year

• • 20% of discount in the fifth year

Moreover, if you wish to rent your property, you would typically need to seek permission from your mortgage lender, as many mortgage agreements contain clauses that prevent properties from being rented out without prior approval.

Can I apply for a Right to Buy mortgage if I’m self-employed?

Yes, you can apply for a “Right to Buy” mortgage if you’re self-employed. However, the application process may be slightly more complex because lenders will need to assess your income in a different way than they would for an employed applicant.
In general, to apply for a mortgage while self-employed, you’ll need to be able to demonstrate a reliable income. Lenders typically ask for the following:

Tax Returns: You’ll usually need to provide at least two years’ worth of accounts or tax returns prepared by an accountant. Some lenders may accept one year of accounts in certain circumstances.

Business Accounts: If you’re a company director, lenders may want to see your company’s accounts in addition to your personal tax returns.

SA302 Forms: These are a summary of your annual income that you’ve reported to HMRC.

Bank Statements: These show your recent business and personal income and expenses.
The exact requirements can vary from lender to lender, and some may use more flexible criteria for self-employed applicants. It’s also important to note that all the usual affordability criteria will apply, including assessing your income against your outgoings and any other credit commitments.

As with any mortgage application, a good credit score and a significant deposit can improve your chances of being accepted.

Can I borrow more on a Right to Buy mortgage?

Yes, in some cases, you may be able to borrow more than the discounted purchase price of the property under the “Right to Buy” scheme. This additional borrowing is often used for home improvements or repairs.

Not all lenders will allow you to borrow more than the discounted purchase price on a “Right to Buy” mortgage. It’s best to check directly with potential lenders or a mortgage broker.

The amount you can borrow will also be limited by the value of the property. The lender will conduct a valuation to ensure the property is worth enough to cover the loan if they had to sell it in the event of default.

Keep in mind that borrowing more will likely mean higher monthly repayments and could result in paying more interest over the life of the loan. You should carefully consider your financial situation and potentially seek advice before deciding to borrow more than the purchase price.

Selling your property

Selling a property that you’ve purchased through the “Right to Buy” scheme in the UK is possible, but there are rules and restrictions that you should be aware of:

1. 1. Repayment of Discount: If you sell your “Right to Buy” property within five years of purchasing it, you will usually be required to repay some or all of the discount that you received
   2. First Refusal Rights: In some cases, if you sell your home within ten years of purchasing it through “Right to Buy”, you must first offer it to either your old landlord or to another social landlord in your area, also known as the “right of first refusal”.
   3. Permission to Sell: Some council or housing association landlords may require you to get their permission before selling your home within the first ten years.
   4. Selling to a Private Individual: If you cannot sell the property back to your previous landlord or another social landlord, or they do not respond within a set time, you can sell it on the open market.

Can I buy any council house with a Right to Buy mortgage?

Yes. Just like any other mortgage, a Right to Buy mortgage also requires you to meet certain financial criteria. This could include your income, expenditure, credit history, and overall financial stability. The lender will need to determine that you can afford the mortgage repayments.

It’s important to consider whether it is the best option for your circumstances. You should consider all costs involved, including mortgage repayments, maintenance costs, insurance, and other homeowner expenses.

Can I use Right to Buy if I’m a housing association tenant?

Certain housing association tenants in England may have the Right to Buy or may be eligible for a similar scheme called the Right to Acquire. However, it’s crucial to note that eligibility varies, and not all housing association tenants will qualify.

Preserved Right to Buy: Some housing association tenants have the “Preserved Right to Buy.” These are tenants who were living in a council property that was then transferred to a housing association. If you were a secure council tenant at the time of the transfer, you may have the Preserved Right to Buy.

Right to Acquire: This is a scheme available to housing association tenants in England who do not qualify for Right to Buy. This scheme also allows eligible tenants to buy their homes at a smaller discount than the Right to Buy scheme.

Voluntary Right to Buy Pilot: The UK Government had run a pilot scheme for a new Voluntary Right to Buy for housing association tenants in certain areas of England. If successful and rolled out nationally, this could give more housing association tenants the right to buy their homes.

Is it possible to remortgage?

Yes, it is generally possible to remortgage a property that you’ve purchased through the “Right to Buy” scheme in the UK. Remortgaging is the process of switching your existing mortgage to a new deal, either with your current lender or a different one.
People usually remortgage for two main reasons:

Better Interest Rate: Once the introductory mortgage deal period ends, the lender usually will switch you to their Standard Variable Rate (SVR), which could be higher than what you were paying before or what other lenders might offer. Remortgaging could help you find a better interest rate.

Borrow More: Some homeowners remortgage to release equity from their homes, allowing them to borrow more money. This could be useful if you want to make home improvements, consolidate debts, or buy another property.
However, if you’re thinking about remortgaging a “Right to Buy” property, there are some important factors to keep in mind:

Early Repayment Charges: Some mortgage products have early repayment charges (ERCs), which could make remortgaging less economical if these apply.

Discount Repayment: If you’re still within the discount repayment period of your “Right to Buy” (i.e., within 5 years of purchasing the property), you might have to repay some of the discounts if you remortgage and borrow additional money against your home.

Lender’s Criteria: The new lender will have their own lending criteria, which you’ll need to meet. They will consider factors such as your income, outgoings, credit history, and the property’s value.

Yes, you can potentially use the Right to Buy scheme if you are receiving benefits. However, being eligible for the scheme and being able to secure a mortgage are two different things.

Can I use the Right to Buy scheme if I am on benefits?

Your income source or whether you receive benefits doesn’t typically affect your eligibility for the scheme itself. However, to buy your home under the Right to Buy scheme, you will usually need a mortgage unless you have the funds to buy the property outright. Mortgage lenders will assess your ability to repay the loan. This means they’ll look at your income, which can include certain benefits, but they’ll also look at your outgoings and any debts.

Each mortgage lender has its own criteria for who they will lend to. Some lenders are more willing to consider applications from people on benefits than others. A mortgage advisor or broker could help you find a mortgage lender that is most likely to accept your application based on your individual circumstances.

It’s also important to consider that owning a home brings extra costs, such as maintenance and repairs, that you might not have had to deal with as a tenant. You should carefully consider whether you will be able to afford these costs, especially if your income is limited to benefits.

Right to Buy mortgage brokers

Whether you should use a Right to Buy mortgage broker depends on your specific circumstances and comfort level with the mortgage application process. Here are some reasons why using a mortgage broker might be beneficial:

Expert Advice: Mortgage brokers are professionals with deep knowledge of the mortgage market, including specialist products like Right to Buy mortgages. They can provide expert advice tailored to your specific situation.

Wide Range of Products: Mortgage brokers have access to a wide range of mortgage products, including some that are not directly available to consumers. They can help you find a mortgage that best fits your needs.

Time-saving: Mortgage brokers can handle much of the paperwork and communication involved in the mortgage application process, which can save you time and reduce stress.

Pre-qualification: Brokers can conduct a pre-qualification check to give you an idea of what mortgages you might be approved for, without affecting your credit score.
However, there are also considerations to keep in mind:

Costs: While some brokers offer free services to the client and are paid a commission by the lender, others may charge a fee for their services. It’s important to understand these costs upfront.

Range of Lenders: While brokers have access to a wide range of lenders, not all brokers work with all lenders. It’s worth checking whether the broker covers a good spread of the mortgage market.

Impartiality: It’s also worth considering whether your broker is genuinely independent and impartial. Some brokers might have preferred relationships with certain lenders.