Secure Trust Bank launches Right to Buy scheme

Secure Trust Bank launches Right to Buy scheme

Secure Trust Bank Mortgages has launched into the Right to Buy market, targeting tenants looking to purchase their current home.

The lender is offering loans for up to 100 per cent of the property price in addition to further funding for post-purchase home improvements, to the lower value of £10,000 or one year’s discount.

The government’s Right to Buy scheme offers eligible council and housing association tenants in England the opportunity to buy their home with a discount of up to £108,000.

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The project was originally introduced in 1980 but in April 2012 maximum discounts under the scheme were increased to £80,900 across England and £108,000 in London.

Secure Trust Bank offers borrowers fee-free products with a two-year fixed rate starting from 3.84 per cent and a five-year fixed rate at 4.54 per cent, to a maximum value of £500,000 in accordance with the scheme.

A two-year fixed rate is also available at 3.24 per cent and a five-year fix at 4.29 per cent, both with a £999 product fee.

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 we are pleased to be able to take Secure Trust Bank’s flexible approach to underwriting and appetite to deliver solutions on strong cases to this important 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."

In May 2015, the government amended the scheme's eligibility criteria to lower the requirement of five years public sector tenancy to three and later that year extended the discounts to housing association tenants