COUNCIL HOUSE MORTGAGE
RIGHT TO BUY

If you are looking for information on council house mortgage - right to buy arrangements we can help you to get the best deal and the lowest rates that are available. If you contact us we will search our database of lenders which includes financial institutions that are not to be found on the high street for an arrangement that best suits your needs. We do not believe that ‘one size fits all’ and your personal requirements will be taken into account. To us you are not just ‘another number’ and we do take care to personalise our applications to ensure that you have the best chance of success particularly for those with a less than perfect financial history including CCJ’s defaults on payment instalments, IVA’s and the self employed with insufficient business records.

The amount that can be borrowed and the rates that will be charged by a lender on a council house mortgage is dependent on a number of factors relating to the property and to the applicants personal circumstances including :-

• the applicants financial history – as any money advanced is secured on property the increase in rates for those with a poor financial history is minimal compared with unsecured borrowing
• family income - most lenders will take into account two incomes when considering the maximum amount to lend
• existing financial commitments - any other regular payments have a bearing on the applicants ability to service a further loan
• property value – a higher discount means increased equity which is more attractive to a lender whose capital is safer
• deposit available – a higher deposit means higher equity and a more secure loan from the lenders point of view

A longstanding secure tenant of the local authority or an assured tenant of a registered social landlord may have the right to buy their home at a discounted price. Maximum discounts are calculated on a sliding scale and vary between £18,000 and £38,000, dependent on the location, ensuring that most buyers will need a council house mortgage to complete their purchase. If you have been a tenant for more than two years (five years if the tenancy started after the 18th of January 2005) of a local authority, a housing association or certain other public bodies you can make an application under the right to buy regulations however certain categories are excluded including :-

• property owned by a ‘registered social landlord’
• property tied to employment
• occupiers subject to a court order requiring vacation
• certain property reserved for the elderly or disabled

An application for the right to buy to the local authority will elicit a Section 25 response which must not be delayed by the council for any reason and must contain information as follows :-

• the appropriate discount applicable
• estimated expenditure required over the next five years
• outline of any structural defects
• landlords terms and conditions on sale
• the landlord's assement of open market value :-

  In the event that the applicant disagrees with the councils estimated open market value then the tenant has the right to have the property re-assessed by the District Valuer whose decision, which may increase or decrease the local authority valuation, is final.