According to Which.co.uk? Right-to-buy mortgages were introduced in the 1980's, where the right to buy scheme provided council tenants along with housing associations tenants the ability to buy their own homes at a discount. Currently, in this time system, the highest number of a value you can get is 70% of the purchase price of your home, which is a total amount of £108,000 in London and £80,900 in other parts of England.
Not all lenders will give a discount on a Right-to-Buy mortgage, even with an upfront deposit. If a house is bought with a 50% discount, the lender may be willing to offer the other 50% of the property without asking for the deposit.
Like all terms and conditions followed when taking a mortgage, should you not make your payments for a certain period of time, your default payments may result in a repossession of the property.
Most lenders use the same application process including credit checks, assessment of income and spending habits (monthly expenses). If you have a bad credit history and debt issues, you will not be eligible to buy a new home or qualify for a right-to-buy mortgage.
Other financial factors that may influence your mortgage process is an undischarged bankruptcy, a pending bankruptcy petition, an individual voluntary arrangement with people you owe money, lastly a debt relief order. If you're self-employed, you may be asked to provide several years' worth of accounts to prove your income.
Currently, the Right to Buy scheme only applies to tenants in England. While the vast majority of English council houses can be purchased through a Right to Buy, there are some restrictions and therefore check the eligibility of your property before applying.
Under the current mortgage rules in England, you need at least to have spent three years living in a council house or apartment to be able to qualify for Right to Buy. Though you may have moved from one place to another, the three year period still applies provided a minimum of 12 months is/was spent in your council home.
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.
Complete the right-to-buy application form.
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