Schemes that lower the bar.
Certain schemes can get you onto the ladder when a standard purchase cannot. They are harder to arrange, which is where our experience is useful.
- No deposit required for Right to Buy
- Limited deposit for Shared Ownership
- Adverse credit considered
What is Right to Buy?
Right to Buy lets tenants of public-sector homes in England buy the property they currently rent, at a discount below market value. The scheme has existed in some form for decades and boomed in the 1980s, when over a million council houses were sold to their tenants.
Policy changes reduced the discounts and narrowed who qualified. Revisions in 2015 widened it again to include housing association tenants as well as council tenants.
Right to Buy mortgages work much like standard residential mortgages, people buying through the scheme are eligible for the same deals as anyone else. Because the discount acts as your deposit, you often need no cash deposit at all.
How do I apply?
Send a completed application form to your landlord. They will respond with an offer setting out:
- A description of the property, plus any land included in the price
- The price they believe you should pay
- How that price was worked out
- Your discount and how it was calculated
- An estimate of service charges for the first five years, if it is a flat or leasehold house
- Any structural defects the landlord knows about
Once you have the offer, you have 12 weeks to confirm you intend to buy.
Shared Ownership
A cross between buying and renting. You buy a share of the property, typically between 25% and 75%, and pay rent to a housing association on the part you do not own, at a reduced rate. Your ownership will be leasehold.
You take a mortgage on your share only, so the deposit is much smaller. You can buy a bigger share later, a process known as staircasing, or eventually buy the association out entirely. Most Shared Ownership homes are newly built, though some are resales from housing associations.
Plenty of lenders insist on a specific Shared Ownership product with its own rates, and some do not offer them at all. We know which ones to approach.
Can I apply for Shared Ownership?
Broadly, you need to meet these:
- Combined household income under £80,000 (£90,000 in London)
- You are a first time buyer, or used to own a home but cannot afford one now
- You currently rent a council or housing association property
Shared Ownership mortgages are no secret to be difficult to come by. Our team can help you find one, and there is no obligation to use us.
Your route to home ownership
Whether you’re using Right to Buy or Shared Ownership, we’ll explain the process, check what you could afford and find a suitable mortgage. Your first conversation is free, with no pressure to proceed.
Call 01225 258900Questions
Your Right to Buy questions, answered.
Do I need a deposit for Right to Buy?
Usually not. The discount you receive from your landlord acts as your deposit, and most lenders accept it as such. That is what makes Right to Buy one of the few genuine no-deposit routes onto the ladder.
How much of a property can I buy through Shared Ownership?
Typically between 25% and 75% of the value. You pay rent to the housing association on the remaining share, and you can buy more later through a process called staircasing.
Can I get a Right to Buy mortgage with bad credit?
Often yes. Because the discount reduces the lender's risk, adverse credit is more likely to be considered than on a standard purchase. It depends on what the issue is, how big it was and how long ago.
Do all lenders offer Shared Ownership mortgages?
No. Many insist on a specific Shared Ownership product with different rates, and some do not offer them at all. Knowing which lenders to approach is most of the work.
Ready when you are.
Whether you’re arranging a mortgage or protecting what matters, tell us what you need and we’ll explain your options clearly. Your first conversation is free and there’s no obligation.
Your home or property may be repossessed if you do not keep up with repayments on your mortgage.
