Buying your council home ~~ council right to buy

There is nothing like owning your own home. If you currently rent a home from a housing association, charity or local authority; they may consider selling the house to you at a discount. This process is known as ‘Right to Buy’. Normally the discount is based on how many years you have lived there, or at least with the same association even if not in the same property. This may be a great opportunity to buy your home, as you may be eligible for a discount on the property which is enough for the mortgage lender to take that discount as the deposit – meaning that you able to buy the property without finding money from your own resources to put down.

Normally, a tenant of this type of property only becomes eligible to apply to purchase the property if you have lived there for 5 years. With some housing associations and councils, you have to be a tenant for a minimum of 5 years, but it does not necessarily have to be in that house or flat – so if you have moved, the discount you have built up can still apply. The longer you have lived there, the more discount you can normally qualify for.

What are the first steps?

If you want to buy your home by way of a ‘Right to Buy’ mortgage, it is best to find out from your council or housing association if you are eligible. But before making an application to them, you should contact a mortgage broker to discuss the mortgage. This is because buying your home is a big committment, you have to be sure you can afford to buy it and that you are comfortable affording the mortgage payments. Your mortgage broker can also assess the viability if getting a mortgage and talk you though all of the steps involved. To do this, you will need to show your mortgage broker details of your outgoings and income.right to buy mortgage broker cardiff

After meeting your mortgage broker, if you are happy to enquire further, you can then ask the council or housing association for the relevant application form. If needed, you can ask your mortgage broker for help completing the forms – we see them frequently, but for you it may all be new. The council will then send a valuer around to find out what they think the value of the property is. They will let you know the value and the discount that they are willing to apply. If the discount is enough, you may not need to find any deposit to buy the property.

At this point, if you still want to proceed, your mortgage broker will make a formal mortgage recommendation and apply for the mortgage to the lender on your behalf. This will mean gathering all the required information from you and managing the process. Once the application is complete and a ‘mortgage offer’ is issued by the lender, you can then look to complete the transaction and own the home. There will also be two solicitors involved, one acting for the seller (council or association) and one for you. If you do not know a solicitor, your mortgage broker can recommend one.

Typically, for arranging a Right to Buy mortgage, Harvey Bowes will charge a fee of £600 or 1% of the balance borrowed, whichever is greater. All fees are always quoted up front and even if we have to do more work, we do not increase the fee we quoted at the start. This fee only applies if you proceed with the mortgage, so you will not pay a fee for all the advice your mortgage broker gives you to at the beginning.

To find out more about buying your home, contact Howard at Harvey Bowes mortgages: 029 21754150


About harveybowes
Mortgage Broker and founding Director of Harvey Bowes Limited. A mortgage broking practice with bases in Cardiff & Poole, UK. We take a fresh and positive approach to mortgage broking which pays dividends for both our clients and frankly, ourselves. The team at Harvey Bowes are expert advisors in all aspects of mortgages from residential to commercial and buy to let.

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