Right to Buy Affordability
The costs of purchasing a property (and home ownership in general) are not to be underestimated. There are enormous advantages to owning your own home, but you first need to ensure you can afford to do so.
Under the government’s Right to Buy scheme, enormous discounts are available for qualifying social housing tenants. Nevertheless, you still need to consider the extent to which you can cover the remaining balance. Exploring mortgage types and options at the earliest possible stage comes highly recommended. Particularly if you are on a limited income or have an imperfect credit score, expert support could prove invaluable.
Calculating the Costs of RTB
An online mortgage calculator can be great for getting an idea of affordability and eligibility. In addition, you can also use our exclusive Right to Buy calculator to work out how much you could save on your home.
Comparing the market to find the best possible mortgage deal is essential. As is considering the additional costs of purchasing a home, which include arrangement fees, solicitor’s fees, stamp duty and so on. It may also be necessary to come up with a sizeable deposit, in order to qualify for a mortgage.
If you’re concerned about your credit history, you may be limited to subprime mortgage products – call our experts for information.
As beneficial as homeownership can be, you need to carefully consider the following:
- You will no longer be eligible for housing benefit as a property owner
- If your circumstances change, you may struggle to keep up with your repayments
- Failing to keep up with your repayments could result in repossession
- Vague quotations can be costly – always demand concrete up-front quotes
- The value of your home could change positively or negatively at any time
- Your financial status will affect your eligibility for a mortgage
Right to Buy can significantly reduce the costs of homeownership, but can also bring additional complications into the matter. We therefore strongly suggest seeking independent expert advice at the earliest possible stage, in order to both simplify the purchase process and ensure you get the best possible deal.
Comparing Homeowner Costs And Tenant Costs
Most would agree that home ownership is a preferable alternative to a tenancy. However, owning your own home isn’t without its own unique costs and responsibilities. It is important to gain a better indication of how the costs of homeownership compare to those of your current tenancy.
It’s important to consider as many regular outgoings as possible – travel and transportation costs, utility bills, clothes, groceries, leisure activities etc.
If you have any questions or concerns regarding the potential costs of homeownership, we’re here to help. Our expert advisers have extensive experience in all aspects of Right to Buy property purchases.
Discuss the available options or to get your application underway, contact a member of the team at UK Property Finance for an obligation-free consultation.
For more information or to discuss your requirements in more detail, contact a member of the team at UK Property Finance.