Secure Trust Bank Mortgages has launched a range of mortgages for tenants using the Right to Buy scheme to purchase their existing home.
This scheme, entitled Help to Own, would mean that for every £1 a tenant invested to buy the property they rent they would receive a total of £3 for their deposit. For an average property worth £228,000, they would be putting in just over £7,000 and getting £22,800 back.
Much of the property flavour of Wednesday’s Budget is likely to be regurgitated announcements that they hope will continue to grab a headline or two despite being old news.
The products start at 5.39% for a 2-year fix and 5.59% for a 5-year fix to 75% loan-to-value, while valuation fees are refunded up to £630.
Like any government policy, the RTB scheme is tangled with a long list of T&Cs, exemptions and jargon not always understood by most.
The lender has identified a number of hotspot regions based on council and housing association stock. These include London, Bristol, Birmingham, Liverpool, Manchester, Newcastle and Sheffield.
Precise have launched a range of Right to Buy mortgages.
Right to Buy abolished in Anglesey
Peter Saunders from Civitas claimed giving tenants in private rented properties the Right to Buy would help solve the housing crisis.
The government should reconsider extending Right to Buy which will erode housing associations’ ability to build homes, director of Legal & General housing partnerships Stephen Smith has said.