As a buy-to-let landlord, you find yourself facing difficult decisions on a regular basis. Whether considering your first buy-to-let investment or managing an extensive portfolio of properties, turning habitable homes into a profit-making business is not easy.

Along with selecting suitable properties in the first place, it is also important to consider the various types of mortgages available. Interest rates and overall borrowing costs can vary significantly from one loan to the next, which could add up to a difference of thousands of pounds over the lifespan of the loan. Comparing the market is essential, but you also need to consider the structure of the mortgage itself.

Choosing between repayment and interest-only buy-to-let mortgage deals can be a daunting prospect. If you have any questions or concerns regarding the different types of mortgages available, we are standing by to take your call.

How are interest-only and repayment-buy-to-leave mortgages different?

Most landlords, particularly those who own and manage multiple properties, choose interest-only buy-to-let mortgages over repayment mortgages. It may not be the most appropriate option for aspiring landlords considering first-time property investments, but it can nonetheless make sense for more established buy-to-let owners.

With an interest-only mortgage, the initial monthly repayments are significantly lower as you are simply covering the costs of the interest. When the term comes to an end, the rest of the mortgage must be paid back. Standard repayment mortgages differ in that a fixed or variable payment is made on a month-to-month basis until the entire balance is repaid. Repayment mortgages, therefore, cost more on a monthly basis during the early stages of the loan.

For standard residential property purchases, interest-only mortgages are considered somewhat risky. Things are nonetheless different where buy-to-let investments are concerned, for which interest-only mortgages can be advantageous in several ways.

Advantages of interest-only mortgages for buy-to-let investors

Recent data from the National Landlords Association suggests that interest-only mortgages remain the most popular choice for buy-to-let investors. This is primarily because the monthly rental income on the property purchased is more than enough to cover the initial interest payments on the properties, which are purchased by landlords as long-term investments.

With the intention to sell the property at a later date and benefit from increasing house prices, the investor is able to make a significant profit while repaying the outstanding balance in full. all while capitalising on tax efficiency (if the property is held in a limited company) and flexibility of interest-only mortgages, ultimately resulting in significant savings to maximise revenues and profits.

By April 2020, tax relief will no longer be available on privately owned interest-only mortgages.

Tax advantages of an interest-only mortgage (held in a limited company)

In a working example, a landlord could let out a property for £1,000 per month while paying a monthly interest-only mortgage repayment of £600. This would leave £400 to be taxed on a monthly basis. If the same property had been purchased using a repayment mortgage, the monthly repayment would be approximately £900, though with the same tax-deductible £600. This is all before taking additional expenses and overheads into account.

It is also worth bearing in mind that as you gradually pay off a repayment mortgage and the tax-deductible part of the loan decreases, the tax you pay increases accordingly. Many landlords therefore prefer to save money in the early days with an interest-only mortgage and invest the additional funds elsewhere, using tax-free ISAs or other investments to protect or increase their wealth.

The disadvantages of interest-only buy-to-lead mortgages

Interest-only mortgages are not without their disadvantages and potential risks. The most prevalent of which is the possibility that the price of the property may fall, which would mean that its market value when sold may not be enough to cover the outstanding debts.

It may also be inadvisable for first-time property investors to opt for an interest-only mortgage unless they have a guaranteed strategy in place for repaying the loan balance when the interest has been paid off. A new mortgage can be taken out to cover the remaining balance, or it can be repaid outright if preferred.

Interest-only buy-to-let mortgages are now generally considered most suitable for established and ambitious investors and limited companies focused on long-term gains. There are instances where interest-only buy-to-let mortgages are perfectly suitable for newcomers to property investments, though, in all instances, they should be carefully considered and approached under advisement. If you have any questions regarding the pros and cons of interest-only mortgages or would like to discuss your buy-to-let business ideas in more detail, contact a member of the team at UK Property Finance anytime. Work out the costs of a mortgage using our mortgage calculator UK

Maternity leave can be a challenging time in life, during which expectant mothers face a variety of unique and ongoing challenges. It can also be a time during which it is more difficult than normal to successfully qualify for credit.

When approaching maternity leave, it is common to experience the following concerns:

• Will maternity leave affect your eligibility for credit?
• Do you have to tell your lender you are on leave?
• How much can you borrow on maternity leave?
• What if you are a self-employed worker?
• How will additional credit issues impact your eligibility?
• What kind of deposit will I need to pay?
• Which other factors are considered by lenders?

At UK Property Finance, we offer specialist advice and support for borrowers both approaching maternity leave and already off work. For more information or to discuss your requirements in more detail, contact a member of the team for an obligation-free consultation.

Does maternity leave affect eligibility for a mortgage?

The short answer is yes, though for reasons that are not entirely justified. Most major lenders simply assume that when you go on maternity leave, you take a significant pay cut while doing so. Employers are not legally obliged to ensure you receive 100% of your salary while away from work, though some make voluntary contributions to maintain their employees’ salaries. This is not always taken into account by major banks and lenders.

Many high-street banks consider applicants on maternity leave to be higher-risk clients than typical applicants. This is because a moderate proportion of those who go on maternity leave each year do not return to full-time work afterwards. Some take on part-time work to dedicate more time to their families, while others choose not to return to work at all.

Maternity leave can affect your eligibility for a mortgage, but it is still perfectly possible to qualify for a competitive deal. It is simply a case of supporting your application with as much evidence as possible to convince the lender you are a low-risk candidate. evidence such as:

• Proof of your intention to return to work
• The approximate date of your return to work
• The terms and conditions of your job
• How many hours will you be working, and what is your salary?
• A reference letter from your employer

Each of the above could help improve your eligibility for a mortgage on maternity leave.

Do I need to tell the bank I am on leave or going on leave?

It is not standard practice for banks and lenders to ask applicants if they are on maternity leave or approaching a period away from work. In theory, it is your obligation to ensure you tell the lender if you are pregnant or already on maternity leave. Even if doing so affects your eligibility, it is essential that you do not hide this information.

This is because doing so could invalidate the terms and conditions of your loan agreement and render the contract void. It could also amount to the falsification of information or the deliberate provision of incorrect or incomplete information. It is almost certain that your lender will find out you were pregnant and/or on maternity leave, at which point you could face problems.

Policies and criteria for eligibility vary significantly from one lender to the next. Irrespective of how it may affect your application, you must let your lender know that you are pregnant and/or on maternity leave.

How much can I borrow if I am on maternity leave?

Your maximum allowance will be calculated in roughly the same way as any conventional mortgage. The lender you apply to will consider various criteria when determining how much you can borrow, including but not limited to the following:

• Your current annual salary
• Your reduced salary while on leave (if applicable)
• Your general financial position
• Your current debts and outgoings
• Your intentions for the money
• The size of the deposit you provide
• Your recent credit history

Your eligibility and the amount you are able to borrow may also be influenced by your partner’s financial status if you are applying for a mortgage together. In some instances, the second applicant’s strong financial position and good credit history can compensate for issues and oversights on the part of the other applicant.

There are no specific limitations as to how much you can borrow. Depending on the lender you work with, you may be offered anything from 3X to 6X your annual salary. In the case of joint applicants, this could be up to six times your combined annual earnings. You will also gain access to larger loans by offering a larger deposit where possible.

What if I am self-employed and on maternity leave?

Many major banks and lenders throw additional obstacles at self-employed applicants. This counts double for self-employed individuals also on maternity leave, who may find their applications particularly heavily scrutinised.

Supporting your application as a self-employed worker means providing as much evidence as possible of your strong financial performance, your responsible financial history, and the fact that you intend to return to work. If you are a sole trader, it can be difficult to prove your future intentions. If you run a larger business with other employees, lenders may assume your income and employment status will not be adversely affected by your maternity leave.

Underwriters often make it difficult for self-employed workers to qualify, but not impossible. It is nonetheless important to ensure you target only the most appropriate lenders for your case. If you are self-employed and on maternity leave, it is highly unlikely that your application will be accepted by a mainstream bank or lender.

Can I get a mortgage on maternity leave with bad credit?

Bad credit alone is enough for most major lenders to deny mortgage applications. It is comparatively rare for any mainstream bank to even consider applicants with poor credit. As you are also on maternity leave, you have very little chance of qualifying for a mortgage with a typical high-street bank.

This is why it is important to ensure you direct your applications to specialist lenders who consider clients on the basis of their overall financial position. Having bad credit and being on maternity leave do not necessarily make you a higher-risk applicant. If you are in a strong financial position and can comfortably afford the repayments on your mortgage, there is no reason why you should not qualify.

Every unsuccessful application you submit to a major lender could inflict more harm on your credit history. That is why we strongly suggest carefully considering your credit score and your overall financial status before applying for a mortgage.

No matter how challenging your position may be, we can help. Even if you have been turned down for a mortgage elsewhere, there is a good chance you will find the help you need from an independent, specialist lender. At UK Property Finance, we provide a whole-market brokerage service for applicants from all backgrounds. With our help, you will find it quick and easy to find the perfect mortgage to suit your requirements and your budget. Contact a member of the team at UK Property Finance anytime to discuss your requirements in more detail. Work out the costs of a mortgage using our UK mortgage calculator.

At UK Property Finance, we are often approached by clients concerned that their new employment status could harm their eligibility for a mortgage. This concerns clients in a variety of situations:

• Applying for a mortgage after switching to a different company
• Mortgage applications when changing roles or departments
• Eligibility for a mortgage after a pay rise or alteration
• Applying for a mortgage when planning to start a new job
• Mortgage eligibility during initial probationary periods
• Qualifying for a mortgage on a temporary contract
• Mortgage applications when joining the job market for the first time
• Applying for a mortgage when switching to self-employment

It is possible to access a competitive mortgage in any of the above scenarios. You will need to know how to submit a convincing application while ensuring you only target appropriate lenders.

Getting a mortgage when starting a new job

With most lenders, you are expected to demonstrate stable employment with the same employer for at least 12 months in order for your application to be considered. It is becoming commonplace for lenders to demand a minimum of three years with the same employer as a prerequisite.

This has proved problematic for ambitious employees chasing bigger and better things. You start out with a new company in a more advanced role with an elevated salary, but you are still technically a newcomer. Many major banks and lenders will not consider your mortgage application for several months or even years.

The more dynamic lenders on the UK market will be happy to consider your new contract from your very first day. If you can provide evidence of your upcoming position, you may be able to apply for your mortgage several months before you actually start your new job. It is a case of providing sufficient evidence of your income, your financial status, your credit history, and so on.

Changing contracts within the same company

This typically doesn’t prove quite as problematic with mainstream or independent lenders in general. If you remain with the same employer, switching from one contract or department to another doesn’t affect the time you have been with the company. If you have worked there for six years and switched to a different position or department, you have still technically been with the same company for six years, irrespective of what you do there.

There are, however, lenders who continue to scrutinise these kinds of transitions quite excessively. It may be necessary to stay in your new role for several months (or even years) before they are willing to offer you a mortgage. This applies to just a select few major lenders but should nonetheless be taken into account when submitting your applications.

Eligibility for a mortgage after a pay rise or alteration

You could think that immediately after qualifying for a pay raise, you will find it easier to qualify for a mortgage. You would also expect to be able to request a higher amount from your lender. This isn’t always the case.

Proof of income means providing payslips or accounts for several months or a year, not just evidence of what you are earning today.

There are plenty of independent specialists who are more flexible in situations like these and will consider your application based on your current earnings. If you are in a stable position with a good track record, you may be able to qualify for a higher mortgage amount. You may also find that your new higher-income status opens the door to a more competitive mortgage with lower overall borrowing costs.

Mortgage eligibility during initial probationary periods

The problem with a probationary period is that you technically aren’t on a permanent contract yet. You can expect your application to be turned down by most major lenders. As your initial contract may only extend for a few months, this is considered an unacceptable risk by most mainstream banks.

Specialist lenders are more likely to consider an application from a client who is working during a probationary period. For example, if the applicant is in a strong financial position and can afford a mortgage, their application will probably be accepted. If there is no reason to suspect that their contract will not be made permanent (or at least extended), they may be offered a competitive deal.

It is advisable to avoid mainstream lenders entirely if you are currently on a probationary contract.

Qualifying for a mortgage on a temporary contract

As far as mainstream lenders are concerned, any contract that isn’t permanent and stable is considered risky. Irrespective of your general financial position and track record, this is a deal-breaker that will count you out of the running. Specialist lenders, however, will look at different criteria and will be more flexible in their approach when dealing with your application.

If you have any questions or concerns regarding your eligibility for a mortgage as a temporary worker, we can help. Contact a member of the team at UK Property Finance to book your obligation-free consultation.

Mortgage applications when joining the job market for the first time

Every lender across the board will assess your eligibility for a mortgage based on multiple factors and criteria. Your financial status and income are perhaps the most important of all. If you have only recently joined the job market as a newcomer to permanent employment, you may find it extremely difficult to qualify with any mainstream lender.

There are instances, however, where mortgages are available for those joining the job market for the first time. It is a case of providing sufficient evidence of your financial position and your capacity to cover the costs of the loan. For example, it could be that you have extensive savings or a trust fund; you may be able to provide a larger-than-normal deposit; or you may have an alternative income stream.

It could also be that the position you have recently signed up for is extremely high-profile and well-paid. If you have walked into a prestigious position with an annual salary of £500,000, you are unlikely to be turned down for a mortgage loan of £150,000.

Applying for a mortgage when switching to self-employment

Conventional mortgage lenders tend to be particularly strict where self-employed applicants are concerned. Even if you have been successfully self-employed for years, you are likely to be scrutinised quite aggressively to even get your application through the door. If you have only just started out in self-employment following a position with a conventional employer, you may find the process even more challenging.

You will need to ensure you target the right lenders with your applications. Some lenders are far more interested in your broader financial status and track record than others. With a specialist lender, the fact that you have only just switched to self-employment may be inconsequential. If you can clearly cover the repayments and have enough on one side to cover the deposit, you have every chance of qualifying.

Applying for a mortgage as a self-employed worker can be uniquely challenging. We therefore advise seeking independent support prior to submitting your application in order to maximise your likelihood of getting a good deal.

Book your obligation-free initial consultation with UK Property Finance today, or drop us an e-mail anytime, and we will get back to you as soon as possible.

Successfully applying for even a single mortgage can be a challenge, but exactly how many mortgages can you take out at the same time? Assuming you have a good reason for purchasing more than one property, how many mortgages can you realistically expect to be offered?

The short answer is As many as you like! If you meet the necessary criteria, there is nothing to stop you from applying for any number of mortgages. Before doing so, however, we strongly suggest seeking independent expert advice.

Qualification criteria to consider

The process of applying for additional mortgages can be slightly trickier than applying for a conventional mortgage. Some lenders simply do not offer second-home mortgages to any applicants under any circumstances. Others will restrict the number of properties allowed in your portfolio, while there are those who impose unique conditions regarding your intended use or occupancy of the property. Every lender has its own unique policies as far as multiple mortgages are concerned, some being far more restrictive than others.

The primary criteria that will determine whether your application passes the first stage will be the same with every lender. The most important examples of this include the following:

1: Can you afford the mortgage alongside your existing debts? When applying for multiple mortgages, it is not quite as simple as just assessing your income, your financial status, and so on. The lender will also need to ensure that you are well on top of your current mortgage debts and general outgoings, which may require additional supporting evidence.

2: Is your track record and credit history up to par? Specialist lenders tend to be far more flexible where issues like imperfect credit are concerned. You will always be expected, however, to provide evidence of a reasonably strong, stable, and responsible financial track record.

3: To what extent will the proposed investment pose a risk? It is the norm to be asked for clarification of your intentions for the property you intend to buy during the application process. Your lender will carefully consider the potential risk and exposure of the investment, both immediate and long-term. For example, if you are looking to buy a property in a block that is falling apart or in any way blacklisted, you may be turned down.

4: What are your expectations? It sounds obvious enough, but the lender will also want to make sure that you know what you are getting yourself into. Diving headfirst into property investments, particularly where buy-to-let is concerned, without careful consideration can prove disastrous. It is not all about the money; you also need to ensure you know what you are doing and have a good reason for doing it.

How many buy-to-let mortgages can I have?

The rules regarding buy-to-let mortgages are subject to the same rules and restrictions as multiple mortgages. If you are able to demonstrate the strength of your financial position and your capacity to comfortably repay the loan, you will most probably qualify.

Most buy-to-let lenders base their lending decisions on the rental income projections of the property in question. Hence, your eligibility may be determined (to some extent) by the monthly rent you intend to charge and your profit potential.

Borrowing with no proof of income

It is not always necessary to provide any personal proof of income to qualify for a mortgage. If you own and operate one or more buy-to-let properties in the UK, your eligibility may be assessed primarily or even exclusively based on your rental income. If your combined rental income from multiple properties covers the costs accordingly, you may be able to qualify for another mortgage with no personal proof of income whatsoever.

This is something that varies significantly from one lender to the next. The more complex your case, the greater the importance of taking your business to independent, specialist lenders. Where multiple mortgages are concerned, you may find it difficult to have your case heard fairly by a mainstream bank or lender.

How many ‘main residences’ can I have?

Along with your financial status and general track record, the type of mortgage you apply for will affect how much you can expect to pay. Anyone who applies for a second residential mortgage will be required to nominate one of the properties as theirmain residence’. This is because residential mortgages on a main residence are usually (though not always) the cheapest mortgages on the market.

Mortgages taken out on properties with other purposes in mind—buy-to-let, commercial applications, etc.—can be more expensive.

This doesn’t mean it is impossible to have more than one residential mortgage. For example, if you intend to purchase a second property to use as a weekend home in another location, you may qualify for a second residential mortgage. The same also applies if you would like to buy a property located closer to immediate family members but do not wish to sell the home you live in.

Multiple commercial mortgages

There are technically no specific restrictions regarding how many commercial mortgages you can have. Taking out a commercial mortgage follows the same basic principles as a residential mortgage, though usually with significantly higher deposit requirements. The lender will carefully consider your intentions for the property and the extent to which your proposed investment represents a risk.

Depending on your intentions for the property, your lender may request evidence of your experience and expertise in the business area in question. This can raise additional challenges for investors branching out into something new, though it doesn’t necessarily count you out of the running.

Commercial mortgages in general can be trickier to apply for than residential mortgages, calling for independent expert support throughout the process. Whether you are planning ahead or in need of urgent support with a time-critical issue, we’re standing by to take your call. Work out the costs of a mortgage using our UK mortgage calculator.

Thousands of UK borrowers ‘imprisoned’ in high-interest mortgages due to the nationalisation of their lenders are mounting a fight back against those responsible. As many as 150,000 homeowners have found themselves locked into high-interest loans, with no option of switching to a cheaper deal.

A group lawsuit is now being filed by the UK Mortgage Prisoner Action Group, with some of its members looking to claim tens of thousands of pounds in excess interest repayments. While the Treasury has insisted on its commitment to “removing barriers” to provide access to cheaper deals, those affected by the scandal have labelled the issue “a is grace.”

Unacceptable interest rates

The lawsuit filed by the UK Mortgage Prisoner Action Group comes in the wake of thousands of mortgages taken out in the late 2000s being privatised following the collapse of Bradford & Bingley and Northern Rock. Some of those affected have reported paying an APR in excess of 5% on their mortgages for at least 12 years, with no option to switch to a better deal. Work out the costs of a mortgage using our UK mortgage calculator.

This amounts to more than twice the interest being charged on equivalent mortgages by several major lenders during this time. One member of the group who spoke to the BBC stated that his mortgage interest rate has been locked at around 7%, resulting in tens of thousands of pounds in additional interest payments.

Like many, his mortgage was taken over by Northern Rock Asset Management (owned by UK Asset Resolution) following the downfall of Northern Rock. As his debt no longer exists as a mortgage in the traditional sense, the option of switching to a better deal with a new lender is not currently available.

Properties repossessed

The fightback against those responsible is being fronted by Damon Parker, partner at Harcus Parker Solicitors. Speaking with the BBC on Wednesday’s Victoria Derbyshire programme, Mr. Parker said that it is the obligation of those who now manage the collapsed banks’ debts to offer their customers a competitive deal.

“We say that our clients have been unfairly treated because they’re paying too much… at a time when every other mortgage customer is paying unprecedented low rates,” he said.

“It’s not fair to charge people just because they are collateral damage caught up in a nationalisation. Some people have gotten into terrible financial situations. Some people have been repossessed.”

A joint effort by the Treasury and the Financial Conduct Authority is said to be underway to help those affected access more affordable deals. However, it will ultimately be up to the banks and building societies themselves to agree to take over their mortgage debts.

The government’s Right to Buy scheme provides qualified council property tenants with the opportunity to purchase their homes at a discounted price. Depending on the property type, location, and period of residency, discounts as high as £82,800 (increasing to £110,500) are available.

In order to qualify under the Right to Buy scheme, the applicant must adhere to:

• The property they wish to purchase is their primary or only residence.
• It is a self-contained property used for a single purpose.
• The applicant has a legal and valid contract with the landlord.
• The tenant has lived on a council property for at least three years.
• It is owned and let by a recognised public sector landlord.
• The property is located in England (there are separate schemes for Wales and NI).

If all of these conditions are met, the tenant has the right to purchase the property at a discounted rate. If the landlord makes a suitable offer and the sale is agreed upon, it falls on the tenant to make the necessary mortgage arrangements.

Are there different types of secured loans specifically for Right to Buy, or are Right to Buy mortgage applications processed as normal?

The right to buy mortgages explained

It’s a common misconception that a separate type of right to buy mortgage’ is available for those who qualify under the scheme. In reality, there’s technically no such thing. Nor does the right to buy in any way adversely affect mortgage eligibility.

Qualifying under the Right to Buy scheme could increase your likelihood of qualifying for a mortgage.

Homebuyers in the United Kingdom are now expected to hand over initial deposits averaging around £50,000. This is a sum significantly higher than most everyday earners can afford. With Right to Buy, the discount afforded under the scheme is accepted by most lenders in place of this deposit.

If you qualify for a discount under the Right to Buy programme, there is a good chance you won’t need to make a deposit. At the very least, you will have a significantly reduced deposit if you qualify for a smaller discount. This opportunity can broaden the options available for right-to-buy mortgage applicants who may otherwise have struggled to qualify for a good deal.

What else impacts eligibility for council house mortgages?

Eligibility for a council house mortgage is similar to traditional mortgage eligibility. There are several factors that may stand in your way of qualifying for a competitive mortgage, including but not limited to the following:

• A poor credit history: Credit checks are carried out where mortgages are issued, impacting not only eligibility but also interest rates and wider borrowing costs.
• Applications during retirement: Some lenders restrict secured loans for home purchases to applicants under the age of 75 or even 70.
• Self-employment: It may be advisable to work with a specialist lender if you are self-employed.
• Non-standard construction: if the council property you live on features any non-standard construction elements, it could affect your eligibility.

In summary…

The right to buy does not have any direct bearing on mortgage eligibility. In order to qualify for a competitive mortgage, you will still be expected to meet the same basic criteria as any other borrower. Work out the costs of a mortgage using our mortgage calculator. UK

If you have any questions or concerns regarding your eligibility under Right to Buy or would like to discuss mortgage options in more detail, we’re standing by to take your call. Contact a member of the team at UK Property Finance for an honest, obligation-free consultation.

Buying a home in the United Kingdom has never been more expensive. Affordable finance options are readily available, but the average UK property price has skyrocketed over the past 20 years.

Thousands of council tenants across England, however, are finding themselves able to potentially capitalise on a highly profitable opportunity. Those who qualify under the Right to Buy scheme may be able to purchase their properties for as much as £82,800 (increasing to £110,500) less than their official market value.

These kinds of enormous discounts have made property ownership more affordable for buyers than ever before. Nevertheless, there are some council tenants who continue to be daunted by the prospect of purchasing their home, even under the Right to Buy scheme. They believe it to be risky and complex, but the process for the buyer is actually quite straightforward and similar to any property purchase.

The four common misconceptions that stand in the way of prospective council property buyers are:

Misconception 1: “It’s too complicated!”

From the buyer’s point of view, it’s actually very similar to any property purchase. All that is needed is to establish your eligibility and then formally indicate your intention to purchase the property.

If you’ve lived in a council house for more than three years and you intend to purchase the house as your primary or only residence, it’s highly likely that you will qualify for a discount. If you’re happy with the purchase price after the discount is applied, then the process is the same as that of any other property purchase and, in fact, in some ways, more straightforward as the seller is less likely to pull out of the sale.

Misconception 2: “Right to buy is only for first-time buyers”

The truth is that there are few restrictions within the Right to Buy scheme in terms of previous homeownership. Again, just as long as you intend to use the property as your primary or only residence, it’s irrelevant how many homes you’ve owned in the past. The Right to Buy scheme is open to all qualifying council tenants across the board. Eligibility is measured by the length of the tenancy, the nature of the property, and so on. As such, you do not have to be a first-time buyer to qualify for a sizeable discount under the Right to Buy scheme in England.

Misconception 3: “The right to buy is only for low-income households.”

It’s surprising how many people think they would not be eligible for a Right to Buy discount on the basis of their earnings. While various schemes and incentives have been introduced over the years for low-income households, Right to Buy isn’t one of them. It’s worth remembering that some council homes in more prestigious locations across England have exceptionally high values. In this case, even a substantial discount wouldn’t eliminate the need for a large mortgage. Your income level will only affect your eligibility for the mortgage to purchase your home, not your eligibility for a discount.

Misconception 4: “I won’t be allowed to sell or let my property in the future.”

Some purchasers have naturally turned to the right to buy as a way to make money. Contrary to popular belief, those who qualify for Right to Buy discounts are perfectly entitled to sell or let their properties go from the moment they take ownership of them; however, if you sell your home during the first 5 years of purchase, you will be expected to repay some or all of the discount that you were granted.

If you are interested in the Right to Buy scheme or have any questions regarding secured loans or mortgages for home purchases, we would be delighted to hear from you. Book your obligation-free consultation with UK Property Finance today. Work out the costs of a mortgage using our UK mortgage calculator.