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Are you looking at your Right to Buy your home in London?

Ascot Mortgages will help to find the best Right to Buy mortgage for you – whether you are looking to buy a house or a flat in the London area.

  • The maximum ‘Right to Buy’ discount has now increased from £75,000 to £100,000 which will help tenants in more expensive areas of the UK (especially London) to buy their council or housing association property using the government Right to Buy scheme.
  • Right to Buy mortgages available for London houses and London flats with discounts available upto 70% of the official property valuation.
  • Ascot Mortgages are experts in arranging Right to Buy mortgages – even if other brokers have been unable to help. If you would like to buy your London council house or flat, please contact us.

Buy your London council property using the “Right to Buy” scheme

Getting on the property ladder is not easy, and if you live in London, the chances are that it’s even more difficult. London property prices have long since been a controversial subject and, despite the recession, housing costs in London have continued to increase. The average price for a home in the capital is now in excess of £350,000 (according to the BBC), meaning that many people are simply priced out of the housing market.

There is, however, some relief on the horizon and on the 20th March 2013 the Chancellor, George Osborne, increased the ‘Right-to-Buy’ discount from a maximum of £75,000 to £100,000 for tenants in the London area, this is great news if you where previously unable to buy your home due to the original cap. For more information, right to buy mortgage options, and a quick assessment to see what mortgages are available to you, please get in touch, for a free initial consultation.

Right to Buy discount percentages in London

The Right to Buy mortgage discount percentage amounts vary between houses, which can be between 32 percent and 60 percent for a house, and between 44 percent and 70 percent for a flat. Both home types are available to buy under the scheme. ‘Right-to-Buy’ became famous in the 1980s as Margaret Thatcher’s government enabled council tenants, who had resided in their homes for some time, to purchase their properties. The recent budget concessions indicate that many more people could continue to benefit from this scheme. There are many reasons that you would benefit from purchasing your property, and some of the benefits can include:

  • Providing an investment for the future. People who build up equity in a property are often able to re-mortgage to raise cash for emergencies, or big purchases.
  • More freedom to decorate and manage the property as you see fit, without having to check with a landlord.
  • More security, knowing that the property is yours for as long as you wish to own it, and you will not be pressured in to downsizing as you will be the owner of the property.

Eligibility for the Right to Buy scheme in London

Eligibility for the ‘Right-to-Buy’ scheme is simple, and a quick check will determine if you could benefit from the increase in discount that has recently been granted. If you are unsure on your eligibility to buy your council house or housing association home in London, please get in touch, Ascot Mortgages will be able to find this out for you (if the council denies you the ‘Right-to Buy,’ then they must provide you with a reason why). Assuming that you are able to purchase your home the next task that you will need to deal with is arranging a mortgage for your Right-to-Buy property.

With Ascot Mortgages this could not be simpler. We take the hassle out of arranging your mortgage, dealing efficiently with the best options on the market to deliver a bespoke mortgage arrangement that suits your lifestyle and budget. We offer a free, no obligation and impartial initial consultation, where we can discuss your needs. As well-established mortgage brokers, Ascot Mortgages take pride in being able to arrange the best deal for you.

Further considerations for Right to Buy in London

So, what should you look for in a mortgage for your ‘Right-to-Buy’ property in London?
Here at Ascot Mortgages we believe in giving you all the facts and letting you decide the best option. Here are the key things that we believe you should look for in a Right-to-Buy mortgage. If you are unsure on any of the points, please get in touch, we are always happy to explain the process.

  • Not all lenders will lend to purchasers wishing to take out a ‘Right to Buy’ mortgage but many will, and for this reason it is important to shop around for the best deal. Do not be fooled into signing up with a mortgage provider because they say that few places will provide you with a mortgage.
  • There are often special schemes available for ‘Right-to-Buy’ purchasers, which reflects the popularity of the scheme.
  • The discount you receive off the actual value of the property, will count towards your deposit, and in most cases you will be able to obtain a mortgage for the full amount left to pay. This means that you do not need to pay a deposit, unless the deposit required exceeds the maximum discount of £100,000 – in which case we can discuss the other options available.
  • Whilst online comparison sites can be useful, they often are not able to present the best prices and terms that using a broker could. It can be useful to use these sites as an initial idea of the cost, but it is often better to speak to an experienced broker, like Ascot Mortgages, to fully explore the offers available.
  • Make sure that what seems like a great deal with a low arrangement fee doesn’t suddenly work out more expensive over the term of the mortgage, because of high interest rates.
  • Do not be taken in by deals with very low interest rates, as their terms may often not be suitable for you. Often, low interest rates are based on tracker or discounted rate deals, where the monthly amount may be variable, or the amount that you repay each month could change. Such deals also often need a high deposit to secure them.

The ‘Right-to-Buy’ scheme is a fantastic opportunity for those people who felt that home ownership in London may never be available to them. It opens up the housing market for people who previously would have remained in social housing, and gives people the freedom and flexibility to invest in their own homes. If you believe that you qualify to purchase your property under the scheme, the first thing that you should do is call Ascot Mortgages, who will be happy to help you. If your property is owned by a housing association, it is still possible to buy your housing association property with the right to buy scheme, this is often referred to as the “Right to Acquire Scheme” but works in very similar way, and Ascot Mortgages are also very experienced in dealing with these type of property purchases.

‘The overall cost for comparison is 5.89% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration.’

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