The Right to Buy scheme significantly impacts the process of obtaining a mortgage for ex-council flats:
Discount as deposit: The discount provided through the Right to Buy scheme can be used as part or all of the deposit, reducing the amount of upfront cash needed from the buyer.
Affordability: The reduced purchase price due to the discount makes the property more affordable and can improve the chances of mortgage approval.
Lender considerations: Lenders are familiar with the Right to Buy scheme and often have specific mortgage products tailored to it. However, they will still assess the property's condition, lease terms, and the buyer's financial situation.
Legal requirements: Buyers must live in the property for a specified period before they can sell or let it out, which can affect long-term plans if not adhered to.