Since its inception, several changes have been made to the right to buy scheme to increase the opportunity for those who really wish to have a property to call their own. This scheme started as a chance for tenants to finally buy the place they currently live in with a discount.
Even with the rules mentioned in the scheme, a lot of people can still not afford it. They are either unable to repay the loans or are rejected upon application. Even without requiring a deposit, it is still difficult for many to avail of the scheme.
The good thing is that with the new changes, the amount has already increased to £75,000 and £100,000 for London boroughs. You can still use this discount as the down payment if you have no capacity to pay for it. The actual discount will still be decided during the assessment, but this is already a huge help for you.
More borrowers are now accepted
It is not easy being rejected each time you apply for a loan. You are not considered qualified even if your documents are complete and you have complied with the special requirements asked. These changes have been in place since October 2016, and they should give you hope that you can finally avail of this government scheme.
You may now obtain a mortgage loan if you have a low credit score, have recent defaults, late payments and an established debt management plan. If you are self-employed, you are also allowed to avail of the scheme as long as you have a new business that has been around for at least 12 months. You just need to show the latest figures, retained profits, dividends, and salary.
The process is still complicated
Even if legislators have found a way to expand the number of people who can avail of the scheme, it is still tough. The process has not been simplified yet. There is still a chance that you will be rejected on technical grounds. There is still a waiting process that you need to observe. You also need to prepare several documents.
You just have to be more optimistic this time as more people have been given the opportunity to avail of the scheme through special right to buy mortgages. You can seek help from local mortgage brokers who have ideas about properties in the area and have dealt with clients availing of this scheme before. It would be difficult going through this tough process on your own. You need someone who will explain the procedure to you before you get started and guide you once you are preparing the documents for application.
AS A MORTGAGE IS SECURED AGAINST YOUR HOME OR PROPERTY, IT COULD BE REPOSSESSED IF YOU DO NOT KEEP UP THE MORTGAGE REPAYMENTS.