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FAQMYMORTGAGE.CO.UK > MORTGAGE GUIDES > COUNCIL RIGHT TO BUY

Council Right to Buy Mortgages

If you have lived in your council house for a while then you may be able to buy the property from the council at a discount. You will need to contact them to get the exact details of:

  • The open market value of your property (OMV)
  • The price you will have to pay to buy the property (RTB Price)

Not all lenders will lend to you, but there are a number of lenders that will lend on their normal terms on right to buy properties. As well as this there are a number of schemes especially designed for right to buy properties where there may be other issues.

How Much Can I Borrow

Most lenders that will lend on right to buy properties will lend up to 95% or 100% of the RTB Price. Also when calculating your loan to value they will use the OMV

This means that for example if you were buying your council house:

  • Valued at OMV £200.000
  • But you can buy it at RTB Price £150,000

Then they would count your purchase as being on a 75% loan to value.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

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Whilst every effort has been made to try to ensure the accuracy of information on this site, I cannot guarantee that it is all accurate or up-to-date. You should ensure that you confirm any information that you will rely on with the appropriate lenders or a mortgage adviser. Always obtain a Key Facts Illustration if you wish to compare mortgages or if you wish to apply for one.

If you would like any personal information or advice on your particular circumstance then you should speak to an FSA Regulated Mortgage Adviser