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Right to buy mortgage brokers

What to look for in a Right to Buy mortgage broker. Want more information about Right to Buy? This article has you covered.

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By Pete Mugleston   Mortgage Advisor

Last updated: 27th February 2019 *

Find a Right to Buy mortgage broker

Right to Buy is a fantastic and often cost-efficient way for tenants to buy their home from the council or their housing association. There are numerous lenders considering Right to Buy and all have different qualifying criteria, so you’ll want to make sure the Right to Buy mortgage broker you choose understands your situation and finds you the best possible mortgage options that work for you.

You might have found it difficult to find a mortgage, especially if you have bad credit or you’re self employed. The good news is that we work with experienced Right to Buy mortgage brokers who can put you in touch with lenders who are likely to approve you.

In this article we’ll be covering:


Why you need a specialist Right to Buy mortgage broker

Getting a Right to Buy mortgage with the best rates is a case of meeting the eligibility requirements at as many lenders as possible, so it’s vital that you seek out a broker with access to the entire market to find the provider best positioned to offer you a good deal.

The advisors we work with are whole-of-market and can offer you the right advice and connect you with the right lender based on your needs and circumstances.


What to look for in a Right to Buy mortgage specialist

A RTB mortgage broker should find you the best mortgage lenders based on your circumstances and preferences. They should be understanding, non-judgmental and offer confidential advice through every step of your Right to Buy mortgage application.

In order to do this, it’s of course important they specialise in Right to Buy applications, as well as various other areas, such as:

  • Self-employment
  • Income from various sources (bonus / overtime / allowances etc)
  • Adverse credit
  • Non-standard construction property
  • Maximising income and affordability

If you fall into any of the above niche categories, it’s essentially to seek out a whole-of-market expert before proceeding as a mainstream lender might turn you away of offer unfavourable rates. Make an enquiry and we’ll refer you to a Right to Buy mortgage advisor that best suits your situation.


What eligibility checks will a Right to Buy mortgage advisor carry out?

A professional Right to Buy mortgage advisor will want to check thoroughly that you are eligible for Right to Buy.

Factors that affect your eligibility include:

  • How long you have lived in the property
  • If the property is your main home or only home
  • Where you live in the UK
  • Court orders, bankruptcy and plans to demolish the property

Getting the right mortgage advice for Right to Buy can save you a lot of hassle and confusion, so make an enquiry and the whole-of-market advisors will talk you through your application and connect you with the lender best positioned to offer you a favourable deal.


Can a Right to Buy broker can help with my application?

The Right to Buy process can be daunting if you’ve never applied for a mortgage before or are unsure about how Right to Buy works. Getting help with Right to Buy mortgages from an advisor can take the pressure off and make the process a lot less stressful.

Here’s how a Right to Buy mortgage broker can assist you through each step of Right to Buy.

Working out the costs

A Right to Buy mortgage broker can look through your finances with you and help you work out if you can afford to not only buy the property but maintain it through the years and also keep up with other bills and costs you’ll have too.

These can include:

  • Repair and maintenance costs
  • Mortgage payment protection insurance
  • Building, contents and life insurance
  • Service charges if you bought a leasehold property (usually flats and some new builds)

Making an application

If you need more help filling in your RTB1 application form, a Right to Buy advisor can help you and make sure it’s sent to the right council department or your landlord.

Making sure your council / landlord responds in good time

Your landlord should respond to your application within 4 weeks to confirm whether you have the right to buy your home. If your landlord misses this deadline, your Right to Buy mortgage advisor can chase your application. If your landlord or council miss the deadline, you could get a further reduction on the sale price.

Appealing your offer

The council / landlord will send you an offer notice which will give you a valuation of the property, any details of any structural issues and information of how much discount you will receive. You might feel that your property has been overvalued or that you are eligible for more discount. Your mortgage broker can help you make an appeal and make sure that you receive a fair offer with the correct discount.

Finding the best mortgage for you

Researching mortgages and finding lenders that will approve you can be really time consuming and often disheartening, especially if you’ve had bad credit or are applying alone or as a self-employed applicant. Some high street lenders and banks can view things like this as “red flags” and will offer higher interest rates or even reject the applicant.

A Right to Buy mortgage advisor will have in-depth knowledge about which lenders will be likely to accept you as well as which ones have the lower interest rates and more affordable terms.

Purchasing your home

Once your Right to Buy mortgage advisor has found you the best mortgage based on your circumstances, they will guide you through the process of applying and then buying your home. Note that a good mortgage specialist should always make things clear to you and gain your agreement before proceeding with any actual applications.


A Right to Buy mortgage broker can work out how much discount you’re eligible for

The amount of discount you receive on your Right to Buy property really depends on:

  • How long you’ve been a tenant with a public sector landlord
  • Whether you’re buying a flat or house
  • The value of your home
  • Whether your landlord has spent any money on your home

The maximum amount of discount that an applicant can receive in England is £80,900. This differs in London because of the increase in property prices so the maximum discount there is £108,000. If you are curious about how much discount you are eligible for, a Right to Buy mortgage specialist can give you a guide and help you work this out before you receive your discount figure from the council.


Discount on a Right to Buy house

If you’ve been a public sector tenant in a house for between 3 and 5 years, you qualify for a 35% discount on the property’s market value. After 5 years, the discount goes up by 1% for every extra year you’ve been a public sector tenant.

House with a value of £100,000

Tenancy

Percentage discount Discount applied Price you pay
3 - 5 years 35% £35,000 £65,000
6 years 36% £36,000 £64,000
7 years 37% £37,000 £63,000
8 years 38% £38,000 £62,000
9 years 39% £39,000 £61,000
10 years

40%

£40,000 £60,000


Discount on a Right to Buy flat

If you’ve been a public sector tenant in a flat for between 3 and 5 years, you get a 50% discount. After 5 years, the discount goes up by 2% for every extra year you’ve been a public sector tenant.

Flat with a value of £100,000
Tenancy Percentage discount Discount applied Price you pay
3- 5 years 50% £50,000 £50,000
6 years 52% £52,000 £48,000
7 years 54% £54,000 £46,000
8 years 56% £56,000 £44,000
9 years 58% £58,000 £42,000
10 years 60% £60,000 £40,0000

What if my landlord has spent money doing up my home?

If your landlord has spent money building, maintaining or making home improvements, then your discount will be affected. If the amount of money spent on your home was more than your property is worth, you won't be entitled to any discount.

If your landlord built or acquired your home before 2 April 2012 then your discount will be less.

If you’re buying your home through Preserved Right to Buy, or if your landlord acquired your home after the 2nd of April 2012, then your discount will be less.


What affects how much I can borrow with a Right to Buy mortgage?

Working out how much mortgage you get can be confusing so your Right to Buy mortgage broker will take you through each factor that could affect you including:

  • Your credit history
  • Type of property
  • Income
  • Employment
  • Age


Speak to a Right to Buy mortgage expert

We pride ourselves on giving accurate Right to Buy mortgage advice and only work with RTB mortgage brokers we trust.

To get a quote from one of the specialists we work with click here or call Online Mortgage Advisor today on 0800 304 7880.

Sit back and let us do all the hard work in finding the mortgage broker with the right expertise. We don’t charge a fee and there’s absolutely no obligation or marks on your credit rating.

Updated: 27th February 2019
OnlineMortgageAdvisor 2019 ©

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The info on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

Find out more about Right to buy mortgages

Right to buy mortgages