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Right to Buy Mortgage
The Advantages of Right to Buy Mortgages
As a tenant for almost five years in the same flat or house, you would have a hard time parting from your comfort zone that has been your refuge for a long time. Tenants are now given the opportunity to purchase the house that they are currently renting with right to buy mortgage schemes. There are other type of loans that a renter can take advantage of like tenant loans, if they are in need of urgent financial assistance, however, this type of mortgage is best for tenants that have been attached to their rented homes and are very much willing to take actions into making it their own. Deciding to take a mortgage that will help you purchase your current home is one big step to investing on a home for you and your family.
There are several advantages that you should realize when you practice your right to buy using a mortgage. One advantage is the rent to own scheme which converts your rent the payment to make your current home finally yours. Renters are always burdened with the monthly payment that they have to make for their flat or their home. For some, rent money takes a big part of their monthly expenses. It gives them the chance to stay in a place where it’s comfortable; however, it is an expense where you don’t get anything else anymore. Now with this mortgage method, not only that you are paying rent, you are also paying for your house payment. It’s like hitting two birds using one stone so they say.
Finding Out Your Options
You can find various types of deals on right to buy mortgage schemes. There are mortgage options that will handle interests and repayments alone. Some options may offer discounts, variable rates, tracker rates and fixed rates as well as capped rates. However, not all of these deals are available to most lenders. That is why it pays off to shop around before finally deciding on one because you might be missing a better deal.
Look out for lenders that will offer you more because there is a big possibility that you won’t need to loan the full value of you house or flat. The majority of tenants are usually granted with favorable discounts on the purchasing price of their rented home provided that they qualify for mortgages that offer right to buy deals. It is important that you are aware of information like this; you might end up paying too much for your mortgage repayments which you could have avoided in the first place.
Assessing Your Situation
Your right to buy deal on a mortgage usually will depend on the type of home you are living in. If unfortunately, you live on one of those high-rise condominium types of buildings, you might have a hard time looking for a lender that will provide you with the mortgage that you need. For those who are lucky enough to find one, you might want to re-evaluate the situation first before you finally take out the loan. Imagine five to ten years from now you decide to sell you house, will it be an easy task to find a buyer once you put your house out in the market? You might also want to think about the market value of your house in the coming years from now especially if you plan to apply for remortgage loans.
With right to buy mortgage, you will be legally responsible for the payment of necessary cost an fees that will come along with it. There will be situations where you will be the one to bear the costs of home improvements that will be done on your house which will also include other maintenance works and repairs. You need to check out your current financial status and the house that you are residing before you go ahead with the loan.