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Mortgage Advisor & Director
Can you get a right to buy mortgage with bad credit?
If you're looking to get a right to buy mortgage, but you have bad credit, you're probably wondering what your chances are of getting approved.
The good news is that although it's more difficult, you may still get approved for a right to buy mortgage even with a bad credit history or low credit score.
Bad credit mortgages are offered by specialist lenders rather than high street lenders. This means that your best chance of getting approved for a bad credit mortgage under the right to buy scheme is by working with specialist mortgage brokers - like our team at Teito. By getting expert mortgage advice, you can increase your chances of getting approved for a mortgage even with bad credit.
Getting started is easy - start comparing mortgage deals online now, and you can find your perfect mortgage in minutes!
What is the right to buy scheme?
The Right to Buy scheme allows eligible public sector tenants and existing council tenants who have been occupying their current home for at least three years to purchase it from their landlord.
Eligible council tenants can purchase their homes at a price that is below market value. The seller must also offer an appropriate discount for the eligible tenant to buy their council home.
What about housing association tenants?
For housing association tenants, there is a similar scheme called the right to acquire. The right to acquire allows eligible housing association tenants to purchase the home they are living in at a discount.
Do you need a good credit score for Right to Buy?
It is definitely easier to get approved for a right to buy mortgage with a good credit score. That being said, it's definitely possible to get a mortgage with a bad credit history.
With bad credit mortgages, specialist lenders will want to know that you can keep up with your monthly mortgage payments. They will want to know that they are offering you exactly the right mortgage amount that is comfortable for your personal situation.
One of the ways that mortgage lenders assess you as a borrower is with your credit report. Your credit history will give an insight into how reliable you are with money, and a poor credit rating can indicate that you have suffered money problems in the past.
Mortgage lenders will consider the age and severity of your credit issue before making a decision. For example, if you have a missed payment, this will be viewed less seriously than a CCJ or IVA. They will consider adverse credit events on your credit record, such as:
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Missed payments such as missed card payments
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Late or missed payments on your utility bills
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Arrears or defaults on any credit agreements
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CCJs or IVAs
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Bankruptcy or debt relief orders
If you're struggling to get a mortgage with bad credit, don't worry - there are specialist lenders who can help. Teito is here to help you find the best bad credit mortgage deal for your needs, so please get in touch today.
Compare right to buy mortgages now and find the perfect mortgage for you!
What does Right to Buy mean for me?
The biggest benefit of getting a right to buy mortgage is that you can get on the property ladder sooner than you thought.
Our expert brokers at Teito work with hundreds of lenders, meaning we're able to find the best deal for you and your circumstances - no matter what they are. Most lenders will want to see that you have a good credit score, but don't worry if you don't - we have access to specialist bad credit mortgages that could get you approved.
If you're interested in getting a right to buy mortgage, start comparing deals online now and let Teito do the hard work for you.
Get started now, and we'll put you on your way to owning your own home!
How much can I borrow on a Right to Buy mortgage?
With right to buy mortgages, the amount you can borrow will depend largely on the market value of your property. The maximum loan-to-value (LTV) ratio is higher than for standard properties, to a maximum of 100%. This means that you may not need a deposit to get a Right to buy mortgage!
What is the maximum LTV?
Under the right to buy scheme, you can borrow up to 100% of the reduced property value, which means that your discount acts as the mortgage deposit.
A mortgage lender will also look closely at your ability to pay back the loan before offering a mortgage. You should get professional mortgage advice to make sure that you are comfortable with the monthly repayments.
Remember, you can use the Teito mortgage calculator to get an idea of how much you could borrow and what your monthly repayments might be.
Compare right to buy mortgages
If you're looking for advice on how to get a Right to Buy mortgage with a bad credit history, we'd love the opportunity to help you. By working with an expert mortgage broker, you can increase your chances of being approved for a mortgage - even if you have a poor credit score.
Most lenders will not consider lending to anyone with an adverse credit history, but Teito has access to specialist bad credit mortgages that could get you approved.
Get started now, and let us help you find the best mortgage deal for your needs!
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.
