Right to Buy Mortgages
Right to buy mortgages are common in the United Kingdom nearly exclusively. This is due to the existence and popularity of living in council homes; homes that are built and operated by the governmental council and offered as rentals to individuals and families.
When someone has lived in a council home for a minimum of two years they may have an opportunity to purchase the home for a discounted price. The longer the person has lived in the home the larger the discount they can qualify for.
An individual who is looking for right to buy mortgages for the council home they have lived in should be aware of two key phrases that will follow them through the process of obtaining the loan; open market value and right to buy price. Knowing these phrases will help you in finding the best lender that will meet your needs as well as understanding what you are able to qualify for.
Most lenders who are willing to offer right to buy mortgages will loan based on the right to buy price and will offer 95% to 100% of the right to buy price. This means that a home with an open market value of 100,000.00 and a right to buy price of 75,000.00 can get a loan for up to 75,000.00.
Some lenders will lend up to 85% of the open market value and the only way to find the option that fits your needs is by shopping around first.
Find out more about your right to buy property.