Looking For Information On UK Mortgages

Posted on | May 21, 2008 | 1 Comment

The right to buy mortgages in the UK offers tenants the ability to purchase the homes that they have been living in at a rate discounted from that of market value.This right to buy operates by allowing you to buy the council house you are currently living in at a substantially discounted price. The longer you have lived in the property, the bigger the discount. Not all mortgage lenders will offer mortgage deals with excellent rates of interest. The level of discount that will be received will be calculated by the amount of years that they have been a public sector tenant up to the defined limits set as maximum discounts for the local area. This means that it is possible for you obtain a discount in the region of 32% to 70% off the market value which makes the Right to buy scheme very attractive to many people. In order for you to qualify for a right to buy mortgage loan, you must be the legal tenant of the property you wish to purchase.

You must be a tenant of this Council or another “right to buy” landlord for at least the previous two years. You may be entitled to a discount off the purchase price of your home. The amount of discount depends on how long you have been tenant in the Council House or other “right to buy” landlord, and the type of house you are living in. Within the right-to-buy scheme, council tenants are entitled to a 32% discount on the value of their house after they have lived in it for a minimum of two years. This is followed by a further 1% deduction for each of the additional years, up to a maximum of 60%. For flats the available discount rises to 70%. It is advisable to seek advice to be sure what is available to you. To find independent advice on which mortgages will be most suitable for you try an independent mortgage broker.

Category: Mortgage Smarts

Comments

One Response to “Looking For Information On UK Mortgages”

S Jones
May 22nd, 2008 @ 8:06 am

Interesting article. Your users may also find our following article useful:

http://www.thinkmoney.com/money-views/1002/right-to-buy.asp