It was in the 1980s the Right to Buy scheme was originally introduced, but even now it benefits a lot of people. Those who are eligible can finally buy the house they are currently living in at a discounted price. The interest rates are also lower.
The main goal was to provide everyone with an equal opportunity to buy a house. Although several changes have taken place since its implementation, it continues to be a popular scheme in the UK. A lot of people have availed of the chance and have been able to get a better deal than with other conventional mortgage loans.
Considering the requirements for the Right to Buy scheme and the benefits that you can get, it is a good idea to give it a try. There are several steps that you need to follow. They can be a bit complicated, but if you successfully complete them all, the rewards are great.
Take the chance
There are several reasons why you should grab the opportunity. To begin with, this is your chance to maintain control over your home. You no longer have to pay your landlord. You will have more independence in making changes in your house. The property will be transferred into your name. This gives you more security compared with simply leasing over an extended period of time.
This also means that if you decide to sell it in the future, the selling price will give you a better profit than the average. The only thing you have to remember is that you are not allowed to sell the property within 5 years. It is one of the conditions before your Right to Buy application is granted.
Search for other loans
Once you compare the conditions of a right to buy mortgage with other house purchase loan options available, you will realise that this scheme is way better. The rates are more affordable and the discount is a huge help. You don’t even need to come up with savings that can be used as a deposit. The discount that you are entitled to can be used as the deposit.
Sadly, this scheme is not for everyone. You need to apply and get an assessment first before approval. The housing department reserves the right to reject your applications if you have not met the requirements.
The good thing is that there are other mortgage loan options available. The conditions might not be the same, but they might be more suitable given your financial condition. Spend time thinking about the alternatives and study the reason why your initial application was rejected just in case you decide to apply again later in the future.
AS A MORTGAGE IS SECURED AGAINST YOUR HOME OR PROPERTY, IT COULD BE REPOSSESSED IF YOU DO NOT KEEP UP THE MORTGAGE REPAYMENTS.
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