The benefits of a UK right to buy mortgage

The UK right to buy mortgage was introduced as a way of allowing more people to get onto the property ladder.

benefits

The benefits of a UK right to buy mortgage for the resident renting is that they have the opportunity to own their own property and gain any benefits of a rising property value. 

Often the property is sold at a discount to the prevailing market value to encourage take-up of the offer.

It has also been shown that where a group of residents in the same area buy their own houses, it can lead to a general improvement in the quality of life in the area because the residents take greater responsibility in looking after their property and the surrounding area.

The benefits to the local council are the savings in the ongoing maintenance costs of the property, the responsibility for which the new owner would accept.

risks

A condition of a the a UK right to buy mortgage is that you can't move from your newly purchased property within the first three years. This was designed to prevent the rise of the serial 'right to buy' resident who would buy their rental property, immediately sell it, and go back to renting accommodation to repeat the process, to take advantage of any discount in the purchase prices.

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