The right to buy mortgage was a good initiative started in the 80s during the reign of then Prime Minister Margaret Thatcher. She used this program to ensure that everyone in the UK could have a property to call his or her own.
The process is very simple. You just have to determine if you are eligible or not. You can start by filing an application form to determine your eligibility. After doing so, the next step is to wait for the response from the agency responsible for these transactions. If you get the confirmation that you are indeed allowed to avail of such a scheme, you will then file another application to begin the process.
You also have to agree to pay a certain amount of money over a number of years. The good thing is that you get a discount if you enroll in this scheme. The said discount can even be used as a down payment, especially if you don’t have enough money to be used as a down payment. The rates are better and the payment scheme is more flexible. With the goal of providing better housing options for people, this program is definitely a huge help especially to the middle class.
Other details you need to know
The first thing you need to consider is that not everyone is allowed to avail of this initiative. If you are already a homeowner, you cannot benefit from it. Once you have got the loan through this program, the next step is to get life insurance or income protection. This allows you to protect the property while you are still paying back the loan.
Speaking of paying back the loan, you need to be consistent in doing so. Failure to pay back the loan will lead to higher penalties. Eventually, you could be at risk of losing the property. Most of all, you are paying for this loan under the right to buy mortgage initiative because you want to finally own a property. There are also restrictions regarding when you can sell the property in the future.
This is a great program introduced by the government years ago, and many people have benefitted from it. There have been some changes though, and these are significant changes that people who are interested in availing of the program must understand. Remember, if you decide to give it a try, you have to be consistent in paying the loan. Ask experts or consult with the respective government agencies first before making your final decision, to avoid issues later.
AS A MORTGAGE IS SECURED AGAINST YOUR HOME OR PROPERTY, IT COULD BE REPOSSESSED IF YOU DO NOT KEEP UP THE MORTGAGE REPAYMENTS.