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Council Right to Buy is a scheme set up in 1980 to promote home-ownership through enabling council tenants to purchase their council homes.
Here we offer further Council Right to Buy Information as well as provide more details of how the Council Right to Buy process works, along with details of how we might be able to help you buy your council house with a council Right to Buy Mortgage solution.
Council Right to Buy Mortgages
Table of Contents:
Council Right to Buy (sometimes abbreviated to RTB) was set up in 1980 as a scheme to help promote home-ownership. It has been supported by successive governments since, enabling over one and a half million council tenants in England to purchase their council homes. The amount raised by local authorities since 1980 has now exceeded £46 billion. The funds have been used to repay debt and finance further capital projects.
Although Council Right to Buy schemes vary between areas, most council tenants having two year's tenancy with a local authority (increased to five years if the tenancy began after 18 January 2005), have the right to buy their homes from their local authority at a discount.
The maximum discounts under the Council Right to Buy scheme for both flats and houses will generally vary between £16,000 and £38,000. These maximum discount limits will depend on the area where the tenant lives. There are exceptions, and these include property that is tied to employment, and housing specially provided for the elderly or the disabled.
As a guide, the maximum regional discounts available are:
| The South East: | £38,000 |
|---|---|
| Eastern region: | £34,000 |
| The South West: | £30,000 |
| The North West and West Midlands: | £26,000 |
| The East Midlands, Humberside and Yorkshire: | £24,000 |
| The North East: | £22,000 |
| Wales: | £16,000 |
| London: | £16,000 |
Generally deposits are not required under Council Right to Buy mortgage schemes! Provided you can afford your mortgage repayments, then the discount you receive can act as your deposit. Indeed, for those currently occupying council property as tenants, council right to buy is an excellent way to get on the property ladder, without the necessity to provide a deposit.
Generally, yes!
Lenders will normally lend up to 95% or even 100% of the market value of your property, rather than the discounted purchase price. So, we can often arrange for you to borrow a further £15,000 to £30,000, depending on the discount you have received, and the current market value of your home.
For example, if you live in the South West, and the council valued your property at £100,000, you may be eligible for discount of up to £30,000. This means the discounted purchase price under the Council Right to Buy scheme would be £70,000 (£100,000 less the discount of £30,000).
So, subject to your income and other status, at 95% loan to value (LTV), we could arrange mortgage facilities of up to £95,000 (£100,000 x 95% LTV). As your discounted purchase price from the council is only £70,000, you would be able to raise a further £25,000.
We're certainly not judgmental here at Shire Direct, and we are here to try and help, whatever your circumstances! So, if you've experienced credit problems in the past, including:
then we can generally assist with your mortgage requirements.
Similarly, if you are self employed, and don't have an adequate accounting profile, we can help even without accounts!
In most cases the answer is yes! A call to one of our qualified Mortgage advisors will usually clarify the situation. Our portfolio of Council Right to Buy Mortgage Lenders includes specialists lenders who will arrange finance on some of the more unusually constructed council properties. We will of course provide you with a rapid in-principle decision.
Well hopefully we've managed to answer your initial Council Right to Buy questions. If you are thinking of purchasing your Council Home, we'd love to hear from you. Why not give one of our qualified Mortgage advisors a call on Freephone 08000 282 281, anytime between 8am and 10pm - seven days a week, or you can enquire online anytime, we'd love to hear from you and we'd love to be able to help!
The overall cost for comparison is 9.8% APR.
The actual rate available will depend upon your circumstances. Ask for a personalised illustration. APR variable and based on a usual case. Most customers are likely to receive a lower rate or the same rate as our overall cost for comparison rate - learn more about APR.
There are no upfront broker fees.
However, a fee may be charged on successful completion. An indication is that on conforming cases (straightforward applications with no or minimal adverse credit) a fee may be charged of up to 1% of the amount advanced, typically £795 and will depend on your circumstances.
For non-conforming cases (where case research and processing may be more complex due to adverse credit or unusual circumstances), a fee may be charged of up to 3% of the amount advanced, typically £1,995.
THINK CAREFULLY BEFORE
SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED
IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Adding existing debt to your mortgage will increase the repayment term and overall cost.
Are you worried and becoming stressed because you are having problems getting a mortgage or remortgage? Worry and stress no more! Here at Shire Direct we provide tailor made mortgage solutions to suit you, and can usually help with all kinds of circumstances including...
Remember, we're here to help, and would love to hear from you!
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Claim £100 worth of Argos Vouchers upon completion of your transaction throughout 2008. Terms and conditions apply - see our Vouchers Special Offer page for full details.
Shire Direct and Shire Direct Mortgages are trading styles of Shire Processing Centre Limited which is
Authorised and regulated by the Financial Services Authority in respect of regulated mortgage products and general insurances.
Registered No: 302389. Commercial funding and Secured Loans are not regulated by the FSA.
Licensed Credit Brokers. Consumer Credit Licence Number: 349999.
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