Evidence would seem to suggest that the UK’s Right to Buy scheme is experiencing a huge surge in popularity. To such an extent that for the first time since its introduction, Right to Buy ranked within the top residential search terms online during July.
That’s according to the latest monthly report from Knowledge Bank, which followed Boris Johnson’s pledge to increase the flexibility of the existing scheme. Despite having previously suggested that the program in general was out of date, Johnson subsequently announced an initiative that would include more housing association tenants in the Right to Buy scheme.
It is currently possible for housing association tenants to qualify under the program, only if ownership of their council property was transferred to a new landlord during their residency.
Introduced in 1980, the potential value of the Right to Buy scheme for qualifying tenants has increased significantly over the years. As of April 2019, the maximum discount available for qualifying properties in England reached £82,800, increasing to £110,500 for qualifying properties in London.
Discounts of up to £24,000 and £8,000 are also available for qualifying properties in Northern Ireland and Wales, respectively.
The top search terms indicated by Knowledge Bank also included ‘interest-only’, along with ‘payday loan’ and ‘British national working overseas or offshore’. Again, none of these have appeared as the most popular search terms for some time, or were never before so relevant.
More than 28,000 Mortgage Criteria Alterations
Remarkably, Knowledge Bank reported a total of more than 28,000 alterations to mortgage lending criteria during the first six months of 2019 alone.
Speaking on behalf of knowledge Bank, CEO Nicola Firth commented on the complexity of the current mortgage lending system and the speed at which the industry is changing:
‘Our tracker reveals a few shifts this month with interest-only making an appearance in residential searches for the first time this year, most likely as a result of several new products and criteria changes to this sector.
It was outstanding to discover that we have seen almost 30,000 mortgage criteria changes yet to date, which just goes to show the pace at which our industry is making changes’.
Ms Firth also stated how the findings highlight the importance of working closely with a registered, regulated and reputable mortgage broker. As the mortgage-lending system in the United Kingdom becomes increasingly complex, it is all-but impossible for the average borrower to navigate it without support. Particularly when it comes to deciding on the most appropriate and affordable type of home loan available, broker support should be considered mandatory.
Ask the Experts
If you are interested in applying for a discount under the Right to Buy or have any questions on your eligibility to purchase your home, we’re standing by to take your call. UK Property Finance has the experience and expertise needed to streamline and simplify your first property purchase.
Article by UK Property Finance.