Secure Trust Bank Mortgages has launched a range of mortgages for tenants using the Right to Buy Scheme to purchase their existing home.
Loans are available up to 100% of the discounted purchase price and the bank will also be able to lend up to £10,000 or one year’s discount – whichever is lower – beyond the purchase price to fund home improvements.
Rates start at 3.24% for a 2-year fixed rate or 4.29% for a 5-year fixed rate, with a £999 product fee. Additionally, there is an option with no product fee including a free or subsidised valuation, with rates from 3.84% for a 2-year fixed rate and 4.54% for a 5-year fixed rate.
The bank’s maximum loan size for Right to Buy is £500,000, with the range having the same criteria and approach to underwriting as its core products.
Tony Hall, sales and marketing director at Secure Trust Bank Mortgages, said Right to Buy provides an ‘excellent opportunity’ for tenants to purchase their existing home and highlights the bank’s appetite to deliver solutions on strong cases to this side of the market.
“Our Right to Buy range doesn’t stop at enabling tenants to buy their home but can also help them to carry out improvements and we are able to lend up to £10,000 or one year’s discounted price on top of the discounted purchase price,” he finalised.