You might be wondering whether you can receive a Mortgage for Right to Buy if you have bad credit. The short answer is: likely. If you are interested in getting a mortgage for the first time, or if you are an experienced borrower who knows what interest rates and other costs are involved in buying your first home, then it is important to shop around. Talking to a specialist mortgage broker who specialised in advising clients on mortgages for people with bad credit scores rather than buying from your local bank is probably the best opportunity you have to locate a suitable lender to provide you with a house loan. A mortgage broker has the benefit of knowledge of how the marketplace works, and he will also know which lenders are prepared to lend you money. The mortgage market is much more competitive than many people realise, and there are plenty of lenders and brokers willing to help you purchase your dream home.
A broker will find you the cheapest rate of interest on mortgages tailored for first time buyers, and will negotiate the best deal for you based on your individual circumstances. He will secure you the maximum borrowing power from lenders and arrange all the paperwork so you don’t have to do it yourself. A broker will look after all of the complex issues for you including application form, valuation of your property, and documentation. Within a few weeks you should have received a mortgage for your property and be in the house you want within a couple of weeks.
The UK Government has introduced a scheme known as Tenants across England and the UK, which provide free mortgages to tenants who want to buy their own homes. If you are a landlord with property to let, then you could benefit from this scheme. This mortgage would provide the finances needed by the tenant to purchase his own home. This type of mortgage would be cheaper than the main type of loan offered by the lenders, the tracker mortgage. The tenant would have to repay the amount of the loan, plus a service charge, if he decided to sell his property or move within a certain period of time.
The amount that you can borrow using this type of mortgage is between two thousand and five thousand pounds. The lender will consider whether you are a self employed person on a limited income or have other problems that would exclude you from being eligible for the loan. In order to work out whether you are eligible to take part in this scheme, you need the help of a mortgage broker. You can only be accepted into the scheme if you fit the criteria that have been set by the government. The eligibility criteria can be changed at any time, so check with the lender before you apply.
If you are self employed, your income will be taken into account to work out your eligibility to take part in the buy scheme. You need to provide details about your employment and your landlord’s agreement with the lender. All landlords must agree to this policy. Your property value will also be taken into account when deciding whether you are eligible to take part in the scheme. The value of your property will be determined by adding your debts, tax payments and any other costs into your total property value.
You can’t take part in this scheme if you have had bad credit in the past. In addition to this, you need to be aged eighteen or over. However, you do not have to be resident in the UK for the mortgage to be granted. You can arrange your own mortgage loan if you are a non-UK citizen. Contact your mortgage broker for more information on the types of mortgages available.
The best way to find out about buy mortgages is to do an online search. There are various lenders who are online and willing to provide this service. All you need to do is fill in a short application form. This will usually be followed by a quote from each lender. Then you can compare quotes and choose the one that suits you best.
If you live in the north of England then you will find you are lucky as housing there is cheaper than anywhere else in England. You can buy mortgages in the north of England for up to 25 per cent less than someone living in the south of England. Housing costs in the north of England are also much higher as there is less demand. Therefore, the housing costs there are lower making the mortgage repayments less.
If you are a first time buyer in the UK then you may qualify for a discount so it is worth enquiring about this. When you apply for a discount rate is considered part of your mortgage. It means that your monthly repayments will be reduced. A discount percentage is normally between five and ten per cent and is good for borrowers who have a score below 590.
Another type of mortgage is a council home or landlord scheme. To be entitled to one, you need to be a permanently resident in the UK. Council homes and landlordships are normally guaranteed for a period of five years but you can extend the guarantee if you wish. You have to be resident in the council or landlord home in order to apply. There is also an additional discount for those tenants that rent their property out and occupy it as their own.
A private rented flat is eligible for a discount up to twenty-five per cent, although you may have to supply proof that you are a permanently resident in the UK. Tenants have to supply proof that they have their own tenancy agreement and are paying the correct amount. You have to supply a signed rent receipt for at least eight weeks or the landlord will not give you any discount.
Another way of obtaining a discount is by paying on time or early rent. In order to qualify you need to be a tenant in the property for at least five years. You also have to meet certain criteria including owning a fully functional electric cooker and electric kettle. Only landlords with the relevant qualifications will be able to get this discount. The landlord’s insurer will be the best person to find out if you qualify for one of these schemes.