You may not be aware but you may be eligible for a council house mortgage. A council house mortgage may be granted to tenants who are currently renting a home from a local authority. There are certain qualification criteria, which we shall soon discuss. First, let’s discuss what are council house mortgages.

When a tenant applies for a council house mortgage, a valuer will be sent to assess the house and give it a market value. This process usually takes around 3 months. If the tenant fulfills all the criteria, and the council house mortgage is approved, the tenant can buy the house at a heavily discounted rate. For example, a house valued at $100,000 may be bought for $50,000.

A tenant can borrow up to 100% of the council’s valuation. In the above example, that means the tenant has excess cash of $50,000. The money can be used for various purposes such as renovations, buying furniture, or for business. Or the tenant can use the money to pay off some debt. Whatever the case, the council house mortgage will leave the tenant in a stronger financial position.

In addition, the tenant is now officially a homeowner instead of a tenant. There are several qualifying criteria for council house mortgages.

Firstly, tenants must have stayed in the council house for at least 2 years. If the tenancy began after 18 January 2005, then the minimum period is 5 years.

Secondly, the house must be a district council house, a London Borough Council House, or a house belonging to a Housing Action Trust. You can apply for the right even if you have bad credit ratings. For instance, you may be a discharged bankrupt, and still qualify for the scheme. All you have to do is to consult a professional mortgage firm that specializes in applying for the right to buy.

Similar to other home mortgages, you are required to pay interest on the loan. In other words, the more you borrow, the more you have to pay back. For this reason, it is best to apply common sense when it comes to deciding on the loan amount to borrow. Obviously, you should not take out the maximum amount that you are eligible for if you do not need that amount of money.

Borrow what you need, and what is necessary to enable you to achieve your own goals. For instance, if you have the intention of using the money for a business start-up, make careful calculations of how much you need and borrow that amount. If you borrow in excess, your monthly payments will naturally be higher, putting more pressure on you to pay off the monthly installments.

And if you find yourself not being able to pay off the monthly payments, you home may be re-possessed. Therefore, always seek professional advice when in doubt. Borrow prudently and you will never have to worry about losing your home.

There are many reasons why one may need professional mortgage advice. For example, you may be a first time home buyer, or you are not familiar with certain mortgage rules and regulations. Speaking with a professional mortgage advisor will help you avoid costly mistakes.

A mortgage is a huge and long term financial commitment. Obviously, being behind in mortgage payments is not exactly fun. In serious cases, the lenders will execute their legal rights and foreclose the property, leaving the owners homeless. Usually, such problems can be avoided with proper financial planning. That is the main reason for consulting a professional mortgage advisor.

Another good reason for engaging a mortgage advisor is because there are too many different types of mortgage loans in the market. This situation arises because different people have different needs. For example, there are first time buyer loans, self employed loans, variable rate loans, bad credit loans and more. A professional advisor will be able to make the proper recommendations to narrow down the scope for you. This is to ensure that you don’t end up with the wrong mortgage type.

In addition, professional advisors will also be on hand to offer you information that would have been difficult to obtain. For instance, you can ask about the maximum loan amount that you qualify for, the deposit required (if any), or whether there are other costs such as stamp duty. Such information will help you come up with better financial plans. Otherwise, you may find yourself coming up short of funds and having your mortgage applications rejected.

Also, since professional mortgage advisors are actively seeking out the right mortgage loans to fill the needs of their customers, they are more likely to be aware of the best deals in town. As they are in a better position to negotiate for competitive rates, you may get to enjoy lower interest rates.

Some buyers tried to apply for mortgage loans on their loan but their applications were rejected for some reason. The most likely reason for rejection is probably bad credit. Therefore, these loans are also commonly known as bad credit loans.

Professional mortgage advisors may be able to help these buyers get their loans approved. This is because there are lenders who specialize in handling bad credit mortgages, and mortgage advisors already have an existing relationship with these lenders. So it is easier for them to get a bad credit mortgage approved.

As the economy rises and falls, some homeowners find that they may not be able to cope. In such times, bad credit mortgage services become extremely useful.

Besides mortgage services, a homeowner may also require additional services such as debt consolidation services. This is another reason why professional mortgage advisors should be hired. They are able to provide comprehensive financial services to alleviate financial burdens.

Finally, when engaging the services of a mortgage advisor, make sure that the advisor is not tied to any lender. If so, the lenders may be paying them commissions to help promote their loans. As a result, they may offer advice that is biased.