Are you looking to buy your council house? If so, you may well need to find a right to buy mortgage in order to do this.
Over 1.5 million people have bought their home under the ‘right to buy’ scheme in the UK.
There are lots of right to buy mortgage lenders and deals in the market so there's plenty of choice.
However, for this reason it’s important that you compare right to buy mortgages before applying to ensure you don't end up paying more than you need to for your home.
Where to find the best right to buy mortgage
With dozens of lenders offering hundreds of right to buy mortgage deals it can be tough to find the best right to buy mortgage for you.
A good place to start your research is with an online comparison as this gives you an easy way to get an overview of the terms and costs of right to acquire mortgage deals from all the leading lenders.
When you compare deals, make sure you look at:
What percentage of your property value the lender will lend
Will they lend you 100 per cent of the discounted right to buy purchase price or do you still have to put a deposit down?
What the deal is
Is it a fixed or discounted rate deal? Are there ‘early repayment charges’ for coming out of the deal early?
Whether there are any fees and charges
These can add a significant amount to the overall cost of a mortgage deal so it's important to factor fees into your comparison. Look for the mortgage deal that suits your requirements and offers the combination of low fees and a low interest rate.
You will generally find that you have many of the same mortgage options as other purchasers. However, if you aren’t fully employed or if you have a less than perfect credit history you may have to look at specialist lenders who offer right to buy mortgages for bad credit.
You should take each of these points into consideration when you compare right to buy mortgages so that you're able to find a mortgage deal that is affordable and suits your circumstances.
Choosing the best right to buy mortgage deal
While it may be tempting to pick the right to buy mortgage with the very lowest interest rate, ultimately it may not be the best option for you so you must check the terms and conditions.
For instance, the cheapest mortgage deals are often trackers or discounted rate deals and while they can seem very attractive, the rate of interest and the amount you pay each month could increase at any point.
If you feel you'd benefit more from stable payments opting for a fixed rate mortgage that meant you paid a slightly higher initial monthly amount for the benefit of security that your payments won't increase during the deal could save you money in the long term and provide peace of mind.
In addition, the very cheapest mortgage deals sometime come with high fees or may only be available if you put down a large deposit so you need to check the terms and conditions of any option that seems suitable if you want to ensure you get the right to buy mortgage that will be cheapest for you..