Council Right to Buy Mortgages

In 1981, a housing act was established that approved that meant that council tenants had the right to buy the property that they resided in, from their local authority. The majority of council tenants have the right to buy their home. Usually these types of mortgage are less expensive than the open market since being a tenant allows a possible discount on the loan.

Please bear in mind that although make every effort to ensure that our site is truthful and the information offered here is reliable, this information should be viewed as a guide and not to be solely relied on. Accurate, upt-t0-the-minute Information should be sought after through the Departments of the Council and its partners.

In order for you to qualify to get a right to buy mortgage, you must:

Legally be the tenant of the property you want to purchase

Have been a legal tenant of the property you want to purchase for a minimum of two years. Dependant on how long you have been living in the property a discount may be due, thus reducing the purchase price of the property.

Buying your Council House

If you decide you want to exercise your right to buy the property you are living in, then it would be wise to remember that you will have to fund the upkeep of the property, including repairs both structural and routine, and any improvements that you might want to make to the property.

Remember that since you have been a tenant, you may be claiming housing benefit to help pay the rent. If you buy the property, then you will not qualify for this type of benefit to help with the mortgage costs. There may be a possibility of getting help with housing costs through income support, but this funding is not normally paid until nine months after you claim.

Reselling the property after buying with the 'Right to Buy'

Since the property is in your name, you can sell it whenever you like. If it is within a three year period, then you will normally have to pay some or the entire discount that you received.

During the first year, the entire discount must be paid back.

The second year, two thirds of the discount must be paid back.

The third year, a third of the discount must be paid back.

After three years, you are free to sell the house without having to pay back any discount.

What Options are there for Right to Buy Mortgages

The Right to Buy scheme allows eligible tenants to purchase their homes at a discounted price as long as they have lived in the property for at least two years and meet other eligibility criteria. This allows almost any secure tenant that can afford to buy their property, apart from those that are living in dwellings connected with their workplace and housing for elderly and sometimes disabled. There are two different ways to purchase under the Right to Buy Act.

The first is that you can pay the full purchase price at once, with discounts between 32 and 70% depending on how long you have been a public sector tenant and the highest discount limit for your council's area.

There is a difference between houses and flats. In the case of a house, after two years the discount will be 32% with 1% being added for every year after up to 60%. In the case of a flat being bought through 'right to buy', after living in the property for two years the discount will be 44% and after that add 2% per year up to 70%.

Limits to the Right to Buy discounts have always existed. These changed on the 11 of February 1999 and affected all applications made from council tenants on or subsequent to that date.

The area you that live in changes the maximum discount you can receive. The discount you would receive would be the lowest between the maximum percentage discount, and the maximum discount cash limit. The following cash limit on discount is as follows:

£22,000 North-East England

£24,000 Wales , East Midlands, Yorkshire and Humber

£26,000 North-West England and West Midlands

£30,000 South-West England

£34,000 Eastern Region of England

£38,000 London and South-East England

Rent to Mortgage Scheme

There is a scheme called the Rent to Mortgage scheme. This can allow you to buy your home even if you can't afford to buy it all at once.

If you look through the booklet 'Your Right to Buy your Home' then you can find out further details. It is strongly suggested that you read this booklet that can be obtained through your landlord before applying for your Right to Buy property.

How do I apply to the council for my 'Right to Buy'?

Read through the booklet 'Your Right to Buy your Home'.

If you believe you have the right to buy then get the form RTB1 from your landlord, and return this to your landlord.

You will be then sent a response notice called a RTB2 and this will tell you if you have the right to buy or not.

If you do have the right to buy then you will be sent a Section 125 with tells you information such as the price you must pay with the discount and the terms and conditions of the sale.

Why not let us arrange your mortgage and carry on the purchase making the process a little easier for you. Just complete the online mortgage form and let us draw up an illustration to suit your needs and circumstances within 24 hours.

No need to pay mortgage brokers fees

Unlike some brokers, we get our income from the companies we deal with rather than our customers. So we don't need to charge you any extra hidden fees.

Within our UK mortgage advisors access, are all the mortgage lenders in the UK , which includes high street banks and building societies and more specialized mortgage lenders such as buy to let mortgage lenders and for people with bad credit history.

Let us find the best Right to Buy Mortgage for you

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YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.