Even if the right to buy mortgage scheme has been around for a long time, you still might have tons of questions about it. This is true especially if you have not considered this type of mortgage before.
When it started, the goal was to allow people to have their own house under their name. It was not easy especially for low-income families. However, with this legislation, they were able to afford the houses and they have managed to buy the place that they had been renting for years under better terms. If you are interested in it, here are some of the questions that you might also have in mind and the responses to them.
Can the discount be used as a deposit?
Yes. This is the main premise of this scheme. You are given a discount to make the property more affordable. You can use that discount as the deposit if you can’t afford one. The good news is that this amount has already increased to £75,000 and even higher in London. For instance, if the value of the property is £250,000 and you are given a £75,000 discount, you can buy it now for just £175,000. The entire amount can be borrowed as a mortgage.
What is the maximum amount to be borrowed under this scheme?
The answer depends on your job, income, age and personal credit. You can increase your chances of getting a bigger amount if you show proof of a secondary source of income. You can also have guarantors.
What if I don’t understand the complexity of the process?
It is not a problem. If you still have a lot of questions regarding the right to buy mortgage, you can seek the services of experts to help you out. They will walk you through the entire process until you get the whole idea. You will also get help during the application so that you won’t be confused, and you will get approval.
Will there be changes to the policies?
Since its inception, this scheme has changed many times. It depends on the country’s legislators. The rules have been made simpler, but they are still a challenge to deal with. Nevertheless, you can get help when you don’t understand the changes and how they could affect you.
It is an exciting scheme from the government to help you make your dream a reality. You don’t have to feel bad about getting rejected for other loans you have applied for in the past. This is your chance to push through with your goals and make them happen. This is tough at first but if you understand how it works, you can get it done.
AS A MORTGAGE IS SECURED AGAINST YOUR HOME OR PROPERTY, IT COULD BE REPOSSESSED IF YOU DO NOT KEEP UP THE MORTGAGE REPAYMENTS.
Image via pixabay.com