Is Right to Buy the Best Choice for You?

The Right to Buy scheme started during the time of former prime minister Margaret Thatcher. She introduced this concept aiming to help people afford to buy their homes. However, since it was introduced, several changes have taken place. The law has been modified several times to meet the current demands

Discount rates have changed over the years based on how well the economy has done. The number of people who have availed of the opportunity has also fluctuated depending on how favourable the terms have been for them.

The concept of Right to Buy

When the Right to Buy scheme was introduced, it was mainly to provide people with opportunities to afford their own homes. They were eligible to apply for a mortgage with easier terms and higher discounts. At that time, many people were struggling to get a mortgage, and this was the government’s way of making it easier for them.

The discount depends on the valuation of the market. The basic rule is that after three years of tenancy, the rate is 35% and it increases by 1% after 5 years. This is, however, applicable for houses only. For those who live in flats, the rates are higher: 50% and 2%, respectively.

Normally, once you have applied for a mortgage, you will be required to come up with a deposit. The good thing about Right to Buy is that you don’t have to. Instead of an actual deposit, you can use the discount provided by the scheme so that you can have the application approved. You need not come up with a specific amount of money.

This does not guarantee approval though. The lender will still check your income along with your expenses to determine if you can afford the mortgage.

Not for everyone 

Generally speaking, the concept of Right to Buy is good for people. The only reason why it is not meant for everyone is that the condition states that you should be already residing in the property and you are not allowed to sell it within five years.

Check other mortgage loans

Since a right to buy mortgage is not for everyone, you might have to opt for other choices. You can get bad credit mortgage loans if you have a bad credit score and your previous mortgage applications have been rejected. You may also try low deposit mortgages where you need not have huge savings to apply for a loan.

Study the full details of Right to Buy first before you decide to go for it. You may also seek advice from your broker so that you will find out if it is in your best interest to avail of this right.


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