Right to Buy Mortgage

The Right to Buy scheme allows you to buy your council property at a lower price than the true market value. The amount you would have to pay is dependent on the length of time you have been a council tenant.

As with all standard mortgages, lenders have to assess the risk of lending you money to buy your council property. Underwriters will take into account a number of factors. Eg: age, employment status, loan to value, amount required. However in the majority of cases the most important factor is your credit status.

If you have a poor credit history you may find it difficult to obtain a mortgage on your council house. If you have got rent arrears, defaults, no proof of your income, county court judgements, IVA’s, previous bankruptcy, or any other “black mark” on your credit file, the chances are that you will not pass traditional lender’s credit scoring.

Until recent years this “failure” of the credit score may well have excluded you entirely from obtaining a mortgage or remortgage. However since the mid-1990’s a number of new, centralised lenders have begun lending to individuals who do not fit the “normal” criteria. Lenders you may not have heard of, as they don’t operate on the high street, but lenders who are owned by huge financial institutions, such as GE, General Motors, Morgan Stanley, Merrill Lynch, Lehman Brothers and the Halifax / Bank of Scotland to name a few. Specialising in right to buy mortgages, they have developed sophisticated pricing systems to allow for the extra risks they take on. They distribute their mortgages through intermediaries like Home Loans Direct.

Home Loans Direct are a specialist broker of adverse credit mortgages. We can help if you have got a poor credit history. We will act on your behalf to arrange the right finance package from a wide selection of these “centralised, specialist lenders”. For your peace of mind we are authorised by the Financial Services Authority and are licensed by the Office of Fair Trading.

To find out how we can help you, complete the online enquiry or call 0800 197 4343 to speak to one of our experienced mortgage advisors