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Bad Credit Right To Buy
Looking For a Right To Buy Mortgage With Bad Credit? We Can Help You
NEW Right To Buy Criteria
In 2015 a number of changes were made to the right to buy scheme making it a more appealing choice to potential borrowers. With more specialist lenders also joining the market, securing the right financing to buy your home – be it a council or housing association property – is now more possible than ever, even with bad credit.
Here at Amber Mortgage Solutions we consider everyone. So if you’re wondering if you can still buy your house with a history of bad credit, our team of experienced mortgage brokers will find you the best bad credit right to buy mortgage to suit your personal circumstances.
What Is The Right To Buy Mortgage Scheme?
The government right to buy scheme, first introduced in 1980, was created to give council tenants in England the opportunity to buy the home they rent with a significant discount. Better still, some lenders will allow this discount to be applied towards a property’s purchase deposit, allowing many borrowers eligible for the scheme to buy their property with no deposit at all.
Whilst there used to be a restriction on the amount of discount a tenant could receive, recent changes have seen discounts increase significantly, with London boroughs having the top discount available of up to £75,000 to £100,000. The discount available to a tenant depends on the valuation and location of the property at the time that the application is made, with discount amounts decided centrally, not locally.
Here’s what our client’s have to say!
Am I Eligible For The Right To Buy?
To qualify for the right to buy scheme you need to have been a public sector tenant – meaning that you have lived in any local council or housing association – for five or more years. This time does not have to have been spent in the same property or on a continuous basis.
Whereas in previous year’s borrowers seeking the right to buy may have been turned down due to bad credit, affordability or self-employment, the recent changes in lending criteria and the introduction of new lenders into the market mean that more tenants can now benefit from the scheme.
As of October 2016, it is still possible to gain a right to buy with bad credit if you have the following:
- Recent defaults
- Recent CCJs
- Late payments
- Low credit score
- Debt management plans (DMP)
- Credit issues accrued in the last 12 months
Unsure if you would qualify for the right to buy scheme? Then contact us today for expert advice from our dedicated team of professional mortgage advisors.
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How Do I Know If I Have A Bad Credit Rating?
It is now easier than ever to obtain your own credit report and see for yourself how you might fare in getting a bad credit mortgage for right to buy.
Credit events that can affect your credit report may include missed or late payments, outstanding debts, CCJ’s, defaults or even bankruptcy.
When you submit a mortgage application, the lender will access your credit file information to assess your suitability for a loan. So, if you’re concerned that you may have adverse credit on your file, we would encourage you to take action sooner rather than later and obtain a copy of your credit report. This can be done for free, from a wide range of trusted online providers.
Need help accessing your credit report? Contact us today and speak with a member of our friendly team for advice.
I Have Bad Credit, What Should I Do?
If you are looking for a right to buy but have bad credit, the best thing that you can do going forward is demonstrate to lenders that you are not a risk. Be sure to pay your monthly credit commitments on time and look at improving your overall finances.
Regardless of what your credit issues may be, our friendly advisors can assist you in getting back on track and help to give you the best possible chance of successfully securing a right to buy mortgage.
Will I Still Be Accepted For a Right To Buy Mortgage With Bad Credit?
When considering your application, lenders will weigh up the risk of whether or not you will be able to pay them back. To do this they will be looking at a wide range of criteria, including your credit history and the severity of any past credit problems you may have. The more severe types of credit problems such as bankruptcy, defaults and CCJs, will stay on your credit record for six years. But the older these become, the less problematic they will seem to lenders.
Fortunately, whilst some high street lenders might turn you down, there are now many lenders out there specialising in providing bad credit mortgages to applicants.
Finding Right to Buy Mortgage Lenders for Bad Credit
We understand that when you’re looking to get a right to buy mortgage with a bad credit history, the process can still feel very daunting. However, with so many specialist right to buy lenders on the market and with the recent changes made to the right to buy scheme, securing a competitive mortgage deal is possible for you.
Our team of bad credit mortgage brokers strive to gain a full understanding of each applicant’s situation, making it possible to place them with lenders who are the right fit. It also means that we will work with you to not only secure you a mortgage, but also provide you with professional advice to help you improve your financial situation for the long term.
