Mis sold right to buy claims

Local authority councils have always had the right to sell their houses to the people that rented them but until the 1970′s this was a very rare occurrence.

Then in the time Margret Thatcher was in power as prime minister she introduced the right to buy scheme within the housing act.  The scheme came into force on 3rd October 1980.

It allowed council house tenants to purchase their homes at a discount dependent on the length of their tenancy.  The minimum discount was 33% and the maximum 60% at the start of the scheme.

By the time the scheme had been up and running 20 years the uk housing market was growing month on month and the right to buy scheme was a very attractive proposition.

Unfortunately a number of mortgage brokers recognised the opportunity to exploit council tenants by helping them purchase their homes.  The time and effort put into marketing by these brokers was huge.  It wasn’t unusual for them to knock on the doors of the tenants and sell them the concept making them believe whilst it would be very difficult to get a mortgage they could help.

All the above with no money to pay upfront, just agree to pay the fees on completion.  The fees were anything from £2000 – £8000.  More often than not the brokers also mis sold ppi.

There were a core number of brokers that were involved in the right to buy market.  Hadenglen, Diamond lifestyle, home and county, council home buyers, your right to buy, the review company and regency mortgage corporation were the main brokers involved.

Hadenglen, home and county and regency mortgage corporation have all be fined by the FSA.

The above list is not exhaustive so if you think you have been mis sold a mortgage and want to make a right to buy claim please fill in the form below