Right to buy mortgages
Right to buy mortgages are only available for council tenants who have a suitable right to buy their council property.
With a right to buy mortgage there is typically a significant discount given by the council and some lenders will accept this discount in full as the deposit for the Right to Buy Mortgage.
Other lenders however may require that you place your own deposit as well regardless of the level of discount offered by the council.
This will often play a large part in the decision making process when choosing the lender to provide the mortgage.
Aside from the deposit right to buy mortgages are quite standard and good interest rates will normally be available.
One further area which may be problematic is the purchase of a flat particularly if the building has more than four storeys.
Council high rises have proven to be poor security for mortgages over the years and hence relatively few lenders would consider them as suitable for lending although this may depend very much on the area where the flat is located.
It is important that anyone taking a right to buy mortgage remembers that the discounted purchase price will be reclaimed by the council if you sell the property within a certain timeframe.
This depends on when you moved into the property and will be made clear by the council.