Right to Buy Remortgages

As per the Housing Act passed in 1980, council tenants have the legal right to purchase the property they reside in, from the respective local authority.

The scheme simply says that you have a legal right to buy the home you stay in from local authorities.

You could also buy the home from a housing action trust or housing association of non-charitable nature.

The Right To Buy Act specifies that as a council tenant you can get discounted rates on the house if you have been a tenant for at least five years.

For every extra year you stay in the house, further deductions are made on the buying value of the house, the maximum value rises to £38,000.

Right to Buy Eligibility

There are certain conditions, which you need to fulfil before you are eligible for the Right To Buy remortgage scheme. The first condition is that you must be legally the tenant of the particular property you wish to buy.

The other condition states that you must be a tenant of the particular council or of another property owner under the right to buy scheme for a period of minimum two years.

You might be eligible for discounts on the buying value of the home. This amount will vary based on the time period you have lived in the house and the kind of dwelling in question.

Just as you have the right to buy your council house, the remortgage lending company also reserves the right to provide a right to buy remortgage.

They have the sole discretion to decide if they want to lend you the money for buying your council house. Factors include, status of your employment, your age, ratio of the loan to the value, your credit history and the specific amount needed.

Bad Credit Scores

You might wonder what happens if your credit history is poor - will you still be able to get a right to buy remortgage?

The answer is yes, whilst in the earlier days, remortgage lending companies would refuse outright any person with a bad credit history, these days the right to buy remortgages are more relaxed in their approach.

These days, even if your credit history and scores compromise you, you can still find mortgage lenders who are willing to offer specialised remortgage deals to suit your purpose.

About Right To Buy Remortgages

The Right To Buy Act was passed in 1980 in the UK and up until then council tenants had no say in the purchase of the house from the local authorities.

The authorities had the ultimate decision and power for selling the house to their tenants or to whom they wanted. However, Horace Cutler and Margaret Thatcher ensured that this scheme was implemented by the year 1997, discounts for council tenants were drastically reduced.

By the year 2005, the rules regarding the act changed and now applicants need to be tenants in the council home for five years to be eligible for the discount.

If the council property in question was bought after 2004, the property cannot be placed into the market on a direct basis, just in case the owner wants to sell the property.

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