Contrary to popular belief, there is technically no such thing as a specialist Right to Buy mortgage. Council tenants interested in taking advantage of the Right to Buy scheme are required to apply for mortgages in the same way as all other home buyers, however, mortgage eligibility can be boosted for many Right to Buy applicants, due to the fact that the discount offered on their home may be accepted in place of a deposit. The elimination of deposit requirements can also prove helpful for applicants with poor credit, who may otherwise have been disqualified by most major lenders.
Since 1980, the Right to Buy scheme has helped many thousands of council tenants get on the property ladder. As it stands, discounts of up to £82,800 are available on qualifying council homes across England, increasing to £110,500 in London.
Can I Qualify for Right to Buy if I Have Bad Credit?
Bad credit mortgage options for Right to Buy applicants are available, though exist primarily away from the High Street. If the discount you are offered on your property covers the deposit requirements, you are more likely to qualify for a bad credit mortgage, nevertheless, it is still essential to target specialist bad credit mortgage providers with your application. Remember that each time your application is rejected by a conventional lender, it could further reduce your chances of qualifying elsewhere.
How is Bad Credit Mortgage Ability Assessed?
Bad credit mortgage specialists differ from conventional banks in that they consider a wide variety of factors and criteria. Your credit score may be low, but you may have a dependable income stream and be in a strong financial position.
Subprime mortgage specialists acknowledge and appreciate how difficult it can be to maintain a flawless credit report. Rather than basing their decisions exclusively on credit scores, they instead consider applications in their entirety by way of merit.
Are Poor Credit Right to Buy Mortgages More Expensive?
Using a bad credit mortgage calculator can be useful for gaining an overview of the options available. Contrary to popular belief, a poor credit Right to Buy mortgage can be just as competitive as a conventional Right to Buy mortgage.
In addition, comparing the market in its entirety to ensure you get the best possible deal is essential.
Why Should I Work with a Broker?
Without independent broker support, your chances of qualifying for a Right to Buy mortgage with a poor credit are relatively low. Many of the UK’s specialist subprime lenders operate exclusively via established brokers, rather than working with members of the public directly.
In addition, finding the right mortgage broker can help you build an understanding of the options available and ensure you are paired with the perfect lender to suit your requirements and budget.
For more information on bad credit mortgages or how to improve your chances of qualifying for a joint mortgage, contact the team at UK Property Finance today.
