Council Right to Buy Mortgage ? Helping Everyone Have a Home of

"We will help every Council Tenant to become Home Owners" With these historic words Margaret Thatcher initiated an equally historic concept of council right to buy scheme. However, the groundwork for this scheme had been laid much before in the 70s under the reigns of the labour government.

The council right to buy scheme, without being embroiled in any controversy regarding who set off the council right to buy scheme, was indeed momentous. It led many people, who would never have thought (capable would be a more appropriate word to describe their situation) to have their own homes.

So what is council right to buy scheme? Council right to buy scheme is a scheme under which the council tenants are eligible to buy the house in which they have been living.

Therefore, what is that which distinguishes the council right to buy scheme from the other schemes? It is different because the customer would have to pay much lesser than what he would have paid had he bought the house in the open market. This is because the customer is entitled to a discount for the number of years that he was staying in the house as a tenant.

The rate of discount varies with the type of residence and the location of the residence. A person residing in a house will be eligible for a discount of up to 30% with a further discount of 1% for every year lived as a tenant of the house. In cases of flats or maisonettes the rate of discount ranges from 44% to 70%, but not exceeding £38,000. The maximum rate of discount is admissible only in a few localities like the posh London and the Southeast areas of England.

To avail the scheme one must be a council tenant. A council tenant is a secured tenant who has been living since 5 years or more (the limit has been changed from 2 years with effect from 18th January 2005) in any of the following:

? District council

? London borough council

? Non-charitable housing association or other registered social landlord

? Housing action trust.

? County council or another similar body

Numerous lenders who have sensed the importance of the scheme offer mortgages especially designed to facilitate such purchases. These mortgages are called council right to buy mortgage. A council right to buy mortgage offers to pay the price of the house. This will be an added attraction to the tenants to go for the scheme. The council tenants can pay off to the council from whom the house has been purchased, and then pay to the mortgage provider in easy and affordable installments. In fact, the monthly installment, which the tenant will have to pay, is lesser than the rent he had been paying. Moreover, while the rent is a sunk cost, the monthly installments facilitate you to have your own home.

Getting a council right to buy mortgage is not that easy. One must start the search process right from the day when they get the offer. The approval process normally takes around 3 months. To start the search late would mean getting the mortgage late. This could mean losing on the offer for council right to buy. The council tenant must also undertake a full structural survey of the property.

The customer must be fully aware of the various formalities that need to be met in case of a council right to buy mortgage. The net can provide enough information about the mortgages. Independent financial advisors can provide useful advice about the various intricacies of the mortgage. A solicitor appointed by the council tenant will act on his behalf in all legal formalities. The solicitor will help in the documentation part of the council right to buy which includes forms like RTB1, RTB2, Section 125 notice, etc.

Next, one has to sort out one mortgage provider from the numerous contenders. This is the most basic step and astuteness in this step will decide how the mortgage fares in the long run. The initial screening can be done through the net. The mortgage providers have compiled the information about their operations and the products that they offer on their websites. Careful study of the information will help give a manageable list of 10-20 mortgage lenders. These mortgage lenders can be requested for their no obligation mortgage quotes. Few more mortgage providers are ousted in this stage. The customer then personally meets the remaining mortgage providers. This is the final stage of the selection process.

The last step will be to decide the amount of mortgage to be taken. This will be derived after valuation of the house by the council or housing association and deducting the discounts from the price.

Treading in a step by step manner will be time consuming but will ensure that one does not has to repent later. You would surely cherish the output, which this effort leads to. The output will be your home-your own home, a perfect allurement, for which you will be ready to take any efforts.

James Taylor works for the personal loan web site http://www.chanceforloans.co.uk.To find a Personal Loans, secured Loans,unsecured loans and mortgage that best suits your needs visit http://www.chanceforloans.co.uk.

---

5 Steps to Getting on Top of your Mortgage

Getting on top of your mortgage so you can pay... Read More

First Time Buyer Home Loans - Things To Consider When Applying Online

As a first time home buyer, there are several things... Read More

Follow A Few Simple Steps To Make Shopping For Your New Home Loan A Little Easier

It is likely to be one of the largest purchases... Read More

Thinking About Re-mortaging? Read These Tips First

More and more of use are signing up for limited... Read More

Residential Mortgage - Finding The Best Home Mortgage Lender

Most people approach the act of getting a home mortgage... Read More

Mortgage Refinance - Tips to Help You Cut Fees and Costs

Saving money through a mortgage refi is more than just... Read More

Home Owner Loans Explained

How To Release Equity Locked Up In Your Home For... Read More

Need a Mortgage, Refinance or Equity Loan? Learn What it Takes, Before Applying

Do you know what it takes to qualify for mortgage... Read More

Mortgage Lead and Mortgage Leads

A mortgage lead is an exciting thing because you are... Read More

Refinancing Your Home - Is the Time Right?

Refinancing your home is a major decision not to be... Read More

Home Equity Loans Popular Scams

Most borrowers fail to realize that when trading their much... Read More

Interest-only Equity Loans Create Amazing Power and are Quite Easy to Get

The power of home equity and interest-only payments, provided from... Read More

Life of an Escrow

Escrow is one of the last stages in the purchase... Read More

Home Equity Loans

A home equity loan allows you to cash-in on the... Read More

Lesser Known Facts About Home Equity Loans

Refinancing your debt via a home equity loan shifts your... Read More

Online Mortgage in UK - Introducing the Best Mortgage Plan Across UK

Add the term 'online' and it will open for you... Read More

Mortgage Reduction Solutions

USA ECONOMIC CONDITIONSToday's sluggish economy has left millions of people... Read More

Good FICO Credit Score? Tips to Getting the Most Out of Your Home Mortgage Loan With Good Credit

Sometimes so much is talked about how to solve the... Read More

Refinancing Online - Tips For Getting a Low Interest Rate When Applying Online

Refinancing online is a great opportunity to find low interest... Read More

Doing a California Refinance Online

Californians are passionate people. I know. I have lived in... Read More

Save Money on Your Mortgage

You should say goodbye to PMI. You may not notice... Read More

Bad Credit Home Financing - Buy a House Even With Poor Credit

Sub prime lenders come in two groups: reasonable and unreasonable.... Read More

Sell Your Home and Invest at the Same Time

I continue to see the same For Sale signs in... Read More

Buying a House or a Home?

A house is just that, a house, until someone lives... Read More

Why You Should Not Get Hung Up on the Interest Rates!!

This is what a mortgage can do for you!AND Why... Read More

Save Yourself from Homebuying Disasters

Whether you are a first time home buyer or a... Read More

Avoiding Foreclosure

If you fall behind in your mortgage payments, you face... Read More

Real Estate Mortgage Loans Online

Online real estate mortgage loans enable borrowers to be sure... Read More

Mortgage Cycling ? Brilliant or Risky

With mortgage rates near 20-year lows, competition in the mortgage... Read More

Why Refinance Back into a 30-Year Loan?

One of the biggest reasons homeowners refinance their mortgage is... Read More

Home Equity Loans 101

A secured home loan differs from an unsecured loan in... Read More

Gearing Up for Bad Credit Mortgages

Mortgage would have never happened, had mortgages been a no... Read More

Benefits of a Remortgage

There are many benefits in choosing a remortgage, some of... Read More