Right To Buy Mortgages

Right To Buy mortgages are considered by many to be one of the greatest opportunities open to council tenants in the UK to get on the property ladder. Despite this, the Right to Buy Scheme is little understood and it is this lack of understanding that prevents many tenants from exercising this right and getting their first foothold on the property ladder.

So far nearly 1.6 million individuals have exercised their right to buy and this figure suggests that although not widely understood, the right to buy scheme is gaining momentum across the UK.

Can Anyone Get A Right to Buy Mortgage?
Right to buy schemes operate purely for council tenants who have been tenants in the council property for at least 2 years. When the tenant has met the minimum length of time which is currently set at 2 years, in their council property for tenancies that began before 18 January 2005 they are able to purchase the property at a price lower than market value. If the tenancy began on or after 18 January 2005 (or after 12 October 2004 in Northern Ireland) then the minimum length of time is 5 years.

Almost any council tenant is entitled to exercise their right to buy, provided that they are in a suitably secure financial position in order to be able to obtain a mortgage. There are some potential exceptions which include those who have been housed in their property as a condition of their employment or those allocated housing that has been provided especially for disabled or elderly residents.

In order to exercise the right to buy, the tenant must be renting their property from: a local authority, a housing action trust, a non-charitable housing association or, if they are in Northern Ireland, the Northern Ireland Housing Executive.