RIGHT TO BUY MORTGAGE
WITH BAD CREDIT

A Right to Buy Mortgage is a specialised mortgage option designed for individuals who meet the eligibility requirements to purchase their council or Housing Association property at a discounted rate. This UK government-supported initiative empowers tenants to transition from renting to home ownership.

Through a Right to Buy Mortgage, eligible tenants can acquire their property at a reduced price, typically based on their length of tenancy. The discount varies based on factors such as the property's location and the number of years the tenant has been a public sector occupant.

By obtaining a Right to Buy Mortgage, tenants can secure the necessary funds to finance their property purchase, granting them ownership and the opportunity to build equity over time. The mortgage terms and conditions are like those of a traditional mortgage, with regular payments being the responsibility of the homeowner.

To qualify for a Right to Buy Mortgage, tenants generally need to have been public sector tenants for a specified period, usually at least three years. They must also fulfil the eligibility criteria outlined by the government and their chosen mortgage lender.

It's essential to be aware that the Right to Buy scheme is subject to specific rules and regulations. Prospective applicants should carefully assess their financial situation and seek professional guidance before initiating a Right to Buy Mortgage application.

If we can’t help, then it’s not possible!

We also advise you to read these two closely related service pages:

• Bad credit mortgages and
• Right to Buy mortgages

If your credit rating is low, don't worry, you still have options for Right to Buy Mortgages. While some traditional lenders may consider your credit rating as a factor, there are specialised lenders who cater specifically to individuals with adverse credit histories.

These lenders take a more comprehensive approach when assessing applicants, considering factors such as income stability, affordability, and the specific details of your credit history. They understand that credit ratings can fluctuate and are willing to look beyond just the numbers.

To increase your chances of finding suitable options, it is advisable to work with a specialist mortgage broker who has experience dealing with low credit ratings, like ams: They have knowledge of the mortgage market and can connect you with lenders who are more flexible with credit requirements. Additionally, they can provide guidance on improving your credit profile if needed.

Keep in mind that mortgage options for individuals with low credit ratings might involve higher interest rates or require a larger deposit. However, by demonstrating your ability to make regular mortgage payments and taking steps to improve your credit over time, you can potentially refinance your mortgage in the future for better terms.

By consulting with a mortgage broker like ams: you can explore the available options and find a Right to Buy Mortgage that suits your financial circumstances, even with a low credit rating. They will guide you through the process and help you secure the financing you need to become a homeowner.

A Right to Buy mortgage broker can assist individuals in overcoming various types of bad credit when applying for a mortgage. While each situation is unique, and lenders have their own criteria, here are some common types of bad credit that a Right to Buy mortgage broker can help with:

• County Court Judgments (CCJs) – these are court orders that can be issued if you fail to repay a debt. Some lenders are willing to consider applicants with CCJs, especially if they are older and have been settled or if you have taken steps to address the outstanding debts
• Debt Management Plans (DMPs) - these involve informal agreements with creditors to repay your debts in smaller, manageable instalments. Some lenders understand that individuals in DMPs are actively working towards resolving their debts and may be more flexible in their assessment
• Individual Voluntary Arrangements (IVAs) - these are formal agreements between you and your creditors to repay your debts over a specific period. While IVAs affect your credit score, there are lenders who specialise in working with individuals who have completed or are nearing completion of their IVA
• Late payments or missed payments - where you have a history of late payments or missed payments on credit cards, loans, or other debts, a mortgage broker can connect you with lenders who are more understanding of these past issues