This scheme was originally introduced by the Maggie Thatcher Government in 1980! The Right to Buy scheme is designed to promote home ownership and offers council tenants and some housing association tenants the opportunity to buy their home at a discount.
Under the current system, the maximum discount you can get is 70% off the purchase price of your home, up to a total of £108,000 in London and £80,900 elsewhere in England.
Under the current rules, if you have spent at least three years living in a council house or flat, you can use Right to Buy. This is based on the Englsih scheme. The rules differ in Northern Ireland and are no longer available in Scotland or Wales. Most Buy-to-Let mortgages are not regulated by the Financial Conduct Authority.
Joint applications are allowed, so you have the option of buying your home with a fellow tenant or partner. You can also apply with up to three family members, provided they have also lived in the property for the past 12 months.
While the vast majority of English council houses can be purchased through Right to Buy, there are some restrictions.
Let us help you navigate the process, check your eligibility and find you the right deal for your own circumstances.
Your home may be repossessed if you do not keep up repayments on your mortgage.
A fixed-rate mortgage is a home loan where your interest rate is guaranteed to stay the same for a set period of time, giving you peace of mind because you know exactly how much your payments will be every month.
In short, a tracker mortgage is a home loan where your interest rate will ‘track’ the Bank of England’s base rate, plus a set percentage. This can mean your payments will reduce as the interest rate reduces, but it can also mean they increase too.
The base rate is currently at a record low of just 0.1%, due to changes caused by the COVID19 pandemic. So, if the interest rate on a tracker mortgage was the base rate +1%, the amount of interest you would pay is 1.1%. If the base rate went up, the interest rate on your tracker mortgage would also rise.
With a discount mortgage you pay the lender’s standard variable rate, with a fixed amount discounted. For example, if your lender’s standard variable rate was 5% and you had a 1.5% discount, you’d pay 3.5%.
A repayment mortgage means as long as you meet all your payments every month, you will be repaying off part of your capital (the money you borrowed) and part of the interest rate. At the end of your mortgage term the property will be fully repaid and will be fully owned by yourselves.
Unlike a repayment mortgage, you only pay off the interest portion of your loan. This means you have to make sure that at the end of your mortgage term you have enough money saved to pay off the outstanding capital in one lump-sum in order to complete your mortgage agreement and own your home.