The 1981 Housing Act allows council tenants to buy the property they live in from the local authority. Most council tenants therefore have "the Right To Buy" their home from a local authority or housing association. Usually a "right to buy" mortgage will cost less than on the open market because as a tenant you can obtain a discount on the loan.

Under the right-to-buy scheme, council tenants are entitled to a discount on the value of their house after they have lived in it for two years. The maximum discount is 60% of the house value and 70% for a flat with a monetary maximum of £30,000.

Initially very few lenders offered Right to Buy mortgages but it has become much more common although still a specialist product. These days it is possible not just to obtain a mortgage to cover the purchase price but also home improvements. So, for instance, you might receive a 50% discount when buying your home (meaning it is worth twice as much as you pay for it) but actually be able to borrow 70% of the open market value to renovate your property.

There can still be problems when buying your council home depending on its construction and your circumstances and it is best to seek our advice to find out what is available to you.

Various mortgage schemes are available which also allow capital raising for home improvements. You could now apply for a Right-to-Buy mortgage even if you have a history of bad credit such as arrears, defaults or CCJ's. Contact Gloucester Mortgage Centre to discuss your case with one of our professional advisers.

For further information, simply contact Gloucester Mortgage Centre
by telephone , by online enquiry or by email

The interest rate on this type of product may well be higher than mainstream mortgage rates due to the risk that they represent.