What is the Right to Buy Scheme?
At Yomo Finance, we understand the unique opportunity that the government's Right to Buy scheme presents for council and housing association tenants. If you're eligible, you can purchase the home you currently rent at a significant discount, making homeownership more accessible. Our Right to Buy mortgage range is designed to support you through this process. Contact our team in Aylesford today to find out more.
Your Right to Buy mortgage specialists
The Right to Buy scheme allows most council and some housing association tenants in England to buy their rented property at a discounted price. The discount can be substantial, with eligible tenants receiving up to 70% off the market value of their home, depending on factors such as the property's value and the length of their tenancy.
Are you eligible for the Right to Buy scheme?
To qualify for the Right to Buy scheme, you must meet the following criteria:
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The property must be your only or main home.
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The property must be self-contained (you don't share rooms with other households).
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You must be a secure tenant (have a legal contract with your landlord).
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You must have been a tenant of a public sector landlord (council, housing association, NHS trust, or armed forces) for at least three years, though this doesn't have to be continuous.
Additionally, you must not have any outstanding legal issues related to debt, such as county court judgments
Here's a few examples
Example 1 - buying a house:
Current house value - £120,000
Years as a tenant - 10 years
Eligible discount (35% + 1% for each year over 5 years) - 40%
Discount value - £48,000
Price you pay for house (£120,000 less £48,000) - £72,000
Example 2 - buying a flat:
Current flat value - £100,000
Years as a tenant - 10 years
Eligible discount (50% + 2% for each year over 5 years) - 60%
Discount value - £60,000
Price you pay for house (£100,000 less £60,000) - £40,000
Try our mortgage calculator today
*mortgage calculator coming soon*
We regularly receive great feedback
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How much can I borrow?A typical mortgage applicant can expect to borrow four and half times their annual income. This should not be affected by your employment type unless your income is low or you have a poor credit score.
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What deposit will I need?There is no specific deposit requirement needed by self-employed applicants and the minimum deposit usually needed for a standard residential mortgage is 10%. That being said, with a short trading history, you will increase your chances of securing a mortgage if you are able to offer more than the minimum deposit requirement. This can also give you access to more competitive mortgage rates.
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Do I have access to the Help to Buy scheme if I’m self-employed with one years’ accounts?All of the government home ownership schemes were created to help those applicants who would struggle to get a mortgage under normal circumstances. This extends to self-employed applicants and, although there will certainly be less availability if you have fewer years of accounts available, Yomo Finance will be able to help you. All of the government home ownership schemes were created to help those applicants who would struggle to get a mortgage under normal circumstances. This extends to self-employed applicants and, although there will certainly be less availability if you have fewer years of accounts available, Yomo Finance will be able to help you.
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What documentation is needed for a self-employed mortgage application?Tax returns, business accounts and possibly a reference from an accountant. This all depends on whether you are a sole trader, a director of a Limited Company or are in a partnership.
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How many years of accounts do I need to provide?Usually, two to three years of accounts. However, you can get a mortgage with one year's books.
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Can I get a mortgage if I am a contractor or freelancer?Yes, but you may need to provide more evidence of income stability. Typically you would need 12 months history.
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How do lenders assess self-employed income?They typically look at your average income over the past two to three years.
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What can I do to improve my chances of getting a mortgage as a self-employed individual?Keep thorough records, pay your taxes on time and maintain a good credit score. You should also limit the amount of expenses you put through in order to maximise your income.
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Are there specific lenders that specialise in self-employed mortgages?Yes, some lenders are more flexible with self-employed applicants.
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How does fluctuating income affect my mortgage application?Lenders prefer stable and predictable income but may consider averages.
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What is the impact of a limited company structure on getting a mortgage?Your income may be assessed differently, focusing on salary and dividends.
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Are interest rates higher for self-employed mortgages?They can be, depending on the perceived risk by the lender but most do not charge higher interest rates for self-employed applicants.
