Non Standard Mortgages - Right To Buy
Right To Buy Mortgages
Right to buy mortgages are for use by public housing tenants
who wish to purchase their property under the Right To Buy
Scheme. Public housing tenants are people who rent their
property from the local council, a non-charitable housing
association or a housing action trust. The vast majority
of Right To Buy sales are of local authority properties.
The Right to Buy scheme was first introduced in 1980, with
the main aim of offering everyone the opportunity to own
a decent home and so promote social cohesion, well being
and self-dependence. The Right to Buy Scheme has since helped
nearly 1.5 million council tenants in England to realise
their aspirations to own their own homes, with ongoing sales
under the scheme now running at around 40,000 a year.
The Right To Buy scheme enables tenants to buy their homes
at a discount price, provided that they have been living
in their home for two years and meet the other qualification
criteria. The RTB scheme is open to virtually any secure
tenant who can afford to buy with the exception of dwellings
occupied in connection with their employment and housing
specially provided for the elderly and (in certain cases)
the disabled.
There are two options available under the right to buy:
1. You can buy your home by paying the full purchase price
at once with discounts ranging from 32% to 70% dependent
on how many years you have spent as a public sector tenant
and subject to a maximum discount limit for the area you
live in.
There has always been a cash limit on Right To Buy discounts,
but new limits came into effect on 11 February 1999, affecting
all applications made by tenants on or after that date.
The changes were made in order to ensure that the scheme
provided better value for money for taxpayers, as well as
still offering generous discounts to purchasers. Subject
to the cash limit, tenants are still eligible to claim up
to 60% in discount off the market value of their house and
up to 70% off a flat depending on the number of years they
have been a public sector tenant. For anyone who applies
after 10 February 1999, the maximum cash limit on discount
is:
2. You can use the Rent To Mortgage scheme if you want to
buy your home, but can't afford to pay for it all at once.
Further details on both schemes can be found in the booklet
Your Right to Buy your Home. It is strongly recommended that
you read this booklet before applying for the Right to Buy.
It can be obtained either through your landlord or by phoning
the number below.
