Right to Buy Mortgage Broker Advice - Penda Financial
Penda provides Advice on Mortgages seven days a week
Contact us for a free consultation on 07789 900359.
Trusted Mortgage Advisors for Right to Buy Mortgages in Tyneside
The Right to Buy is a government backed mortgage scheme that enables council tenants in England to buy their council home they currently rent at a discounted price.
Our mortgage advisers provide advice on Right to Buy mortgages.
How Does the Right to Buy Scheme work in Tyne & Wear
The Right to Buy scheme gives you the option to buy your home at a discount to the actual value of your property.
The actual discount you receive will depend on how long you have lived in a property as a tenant, the type of the property, and the market value of the property.
Who is the Right to Buy Scheme for in Newcastle
The scheme is for council tenants who live in a self-contained council property.
Who is eligible to apply for the Right to Buy Scheme
You can apply provided it is your only home or primary residence.
The property is self-contained with no shared rooms, including toilets, kitchens and bathrooms, with people from outside your household.
You are a secure tenant with a legally binding contract between you and your landlord.
You've had a public sector landlord such a council, housing association or NHS trust for three years.
You have no legal issues with debt
If you are interested in the scheme, you will need to complete a right-to-buy application form. Once accepted, you will receive a property valuation, together with your agreed discount.
If you are interested in the mortgage scheme, contact your landlord to find out whether you qualify, and if you do contact us for mortgage advice.
What Discount Should You Get For Your Property
If you have lived as a tenant in a house for three to five years, you should receive a discount of around 35%.
If you have been a tenant in a flat for three and five years, you should get a discount of around 50%.
Discounts increase by 1% for flats and 2% for houses for every additional year you live in them. The maximum allowable deduction is 70%.
For example, you could buy a £60,000 flat for £24,000, if you had been a tenant for ten years by applying a 60% discount..
Local
Mortgage advice in Newcastle and Tyneside
You will need to apply for a mortgage just like everybody else.
Buying a property is a big decision and applying for a mortgage is a big financial commitment.
Seek financial advice from a local mortgage adviser, such as Penda Financial, who will provide professional advice on mortgages, help you assess your monthly household budgeting and guide you every step of the way.
Right to Buy Mortgage Deals
Right to Buy lending is available for up to 100% of the borrowers discounted purchase price.
Some lenders will also offer up to 75% of the property value for home improvements.
Advantages of Right to Buy Purchases
You will get a discount off the property's true market value, to help make buying your property and your first mortgage more affordable.
The disadvantages of Right to Buy Purchases
If you're buying a flat, you will have to pay a service charge to the council or housing association for the maintenance of the building.
You will no longer qualify for housing benefit when you purchase the property.
If you sell the property within five years, you be required to return a percentage of the profits to the council or housing association. This percentage will decrease from 80% in the second year to 20% in the fifth year.
