Right to Buy remortgages are a hot topic for council tenants who’ve used the Right to Buy scheme to purchase their home and now want to remortgage for a better deal, home improvements, or even to raise cash. If you’ve bought your property through Right to Buy (RTB) and are wondering how remortgaging works, this guide will cover everything you need to know.
A Right to Buy remortgage is when you switch your existing mortgage to a new lender or deal after buying your home through the government’s Right to Buy scheme. Many homeowners do this to:
If you’ve used the Right to Buy scheme, there are a few key points to remember before remortgaging:
Five-Year Discount Rule – If you sell your home within five years of buying it, you’ll have to repay some or all of the Right to Buy discount you received. However, remortgaging isn’t the same as selling, so this rule doesn’t stop you from switching lenders.
Early Repayment Charges (ERCs) – If your current mortgage deal has an early repayment fee, it’s important to check how much it will cost before remortgaging.
Loan-to-Value (LTV) Ratio – Some lenders may have specific LTV requirements for ex-council properties, so check if your home’s value meets their criteria.
When you first bought your home, you might have been on a specialist Right to Buy mortgage, which could have had higher interest rates than standard mortgages. Now that you’re a homeowner, you may qualify for better deals, helping you save money.
Many former council properties need modernisation. A remortgage can free up cash to:
Some lenders even offer home improvement remortgages, making this process easier.
If you have outstanding debts (such as credit cards or personal loans), a remortgage could help consolidate them into one manageable monthly payment. However, this increases the length of your borrowing, so it’s important to weigh up the long-term costs.
Life circumstances change. You might want to remove a co-owner from the mortgage (such as a former partner) or add a new partner. A remortgage allows you to restructure ownership of the property.
Step 1: Check Your Current Mortgage Terms
Look at your mortgage paperwork to see if there are any early repayment charges and check the remaining balance.
Step 2: Get Your Property Valued
Lenders need to know how much your home is worth before offering a new mortgage. If your property has increased in value since you bought it, you might be eligible for better deals.
Step 3: Compare Remortgage Deals
Use a mortgage broker or online comparison tools to find the best remortgage rates. A broker can help you access deals that may not be available directly to the public.
Step 4: Apply for a New Mortgage
Once you’ve chosen a lender, you’ll need to provide documents such as:
Step 5: Legal Process and Completion
Your new lender will carry out checks and a solicitor may be required to handle legal paperwork. Once everything is approved, your new mortgage will replace the old one.
Check your remortgage options and see how much you could save.
Contact us nowYes, you can remortgage while still within the five-year Right to Buy discount period, but there are a few things to consider:
Some lenders are more flexible than others when it comes to Right to Buy remortgages. High street banks like Nationwide, Barclays, Halifax, and NatWest offer remortgaging options, but specialist lenders may have more suitable deals if you have unique circumstances.
A mortgage broker can help you find lenders that cater specifically to Right to Buy homeowners, especially if you have bad credit or need to borrow more.
Remortgaging a Right to Buy property can help you save money, fund home improvements, or consolidate debts. However, it’s important to check the terms of your existing mortgage and understand any potential costs.
If you’re unsure about the best option for you, speaking to a mortgage advisor can help you find the most suitable deal for your situation.
Thinking of remortgaging your Right to Buy home? Start comparing deals today and see how much you could save.
Yes, you can remortgage your Right to Buy home just like any other homeowner. Many people remortgage to get a better interest rate, release equity, or switch lenders. However, if you’re still within the five-year discount period, selling the property may require you to repay part of your discount.
You can remortgage at any time, but if your current mortgage has early repayment charges (ERCs), it might be best to wait until they expire. If you’re still within the five-year discount period, you can still remortgage, but keep in mind that selling the home could trigger discount repayment rules.
Yes, you can release equity when remortgaging, but lenders may have different criteria for ex-council properties. The amount of equity you can release depends on:
Some lenders may also restrict how much you can borrow during the first five years after buying through Right to Buy.
Yes, you can use a remortgage to consolidate debts, such as credit cards, loans, or overdrafts. This can make your repayments more manageable by rolling everything into one mortgage payment. However, this means extending your debt over a longer period, which could cost more in the long run. Always seek financial advice before consolidating debts.
No, you don’t usually need a deposit when remortgaging. Instead of a deposit, lenders look at your Loan-to-Value (LTV)ratio, which is the percentage of your home’s value that you’re borrowing. If your property has increased in value since you bought it, you may even get access to better mortgage deals.
Remortgaging doesn’t affect your Right to Buy discount—only selling does. However, lenders may have stricter borrowing limits during this period. If you sell before five years have passed, you’ll need to repay some or all of the discount.
Yes, if you have enough equity in your home and can afford the repayments, you could remortgage to buy another property. This is known as raising capital for a second property. However, lenders will check your income and affordability to ensure you can manage both mortgages.
Yes, but your options may be limited. Some lenders specialise in bad credit remortgages, but you may face higher interest rates. If you have CCJs, defaults, or missed payments, working with a mortgage broker can help you find the best deal.
Yes, you can remortgage to:
This process is called a transfer of equity, and it usually requires a solicitor.
Many UK lenders offer Right to Buy remortgages, including:
A mortgage broker can help you compare the best deals based on your financial situation.
The remortgaging process typically takes 4 to 8 weeks, depending on your lender, paperwork, and any legal requirements. If your finances are straightforward, it may be quicker.
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