Getting a Right to Buy Mortgage with Bad Credit History

First introduced in the 1980’s the governments Right to Buy scheme has since allowed millions of public sector property tenants to buy their rented homes.

If you are looking to take your step onto the property ladder and have been living in your council property for some time then a Right to Buy mortgage can allow you to go from tenant to homeowner in just a matter of months.

What is a Right to Buy Mortgage?

A Right to Buy mortgage enables tenants of council properties to buy their home at a significantly lower cost then buying from a developer or private seller.

The additional benefits include the fact that you are able to buy the property from the council at a highly discounted rate and on terms that are affordable. This opens up the opportunity of becoming a homeowner to a lot of people who would otherwise be unable to even contemplate buying their property.

Could I Be Eligible for a Right to Buy Mortgage?

Although eligibility will need to be confirmed with your relevant council, you should be considered eligible if;

– You have been renting your property for a minimum of 3 years

– Your property is your main residence

– You do not live in sheltered housing

– The property is self-contained and does not contain facilities shared with people outside of the household

– The property is not scheduled for demolition

– You don’t have any outstanding possession orders

What Other Factors Will Be Considered When I Apply For a Mortgage?

The process of buying a property can be a long and sometimes difficult one so it is always in your best interest to have an idea of what the process might entail and some of the key steps along the way.

The borrowing requirements can vary between mortgage providers but some of the key aspects they will look at include;

Income – This includes the amount you earn plus anything received from government benefits, pension payments, bonuses and overtime. This is used to help them calculate how much you can reasonably afford to borrow.

Outgoings – From how much you spend each month on utilities, bills and groceries to social spending and sporadic costs. Lenders will be keen to see that you will be able to live within your means when making monthly mortgage payments.

Debts – Any outstanding debts, loans and credit card bills will be factored in when calculating your affordability for a new mortgage, so it is worth clearing as much debt as possible before applying for a mortgage.

Credit History – No matter the type of loan or mortgage, when you are borrowing money, lenders will require proof that you are able to manage your finances responsibly and have done so in the past.

  • Can I Still Get a Right to Buy Mortgage if I Have Bad Credit?

Having past credit problems is likely to make it more difficult for you to get a mortgage but it does not rule it out completely. Speaking to a finance or mortgage advisor that specialises in Right to Buy Bad Credit mortgages from the beginning gives you the best chance of securing the right deal.

These mortgage experts will not only be able to provide professional, reliable advice to help navigate you through the process but will have relationships in place with specialist lenders who will consider applicants with adverse credit scores – setting you on the right path to buying your home.