If you remortgage or take out a secured loan for certain purposes against your property, we can agree that the new loan takes priority over repaying your Right to Buy discount.

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Costs for this service

The cost for this service is £120.

What you need to know...

If you bought your property through the Right to Buy scheme, the repayment of the discount you were given will have been secured by a legal charge against your property. If you bought with a mortgage, the lender will also have secured the money it has loaned you through a legal charge on your property.

If you want to remortgage your property or get another secured loan during the discount repayment period, it is likely that your mortgage company will want you to get a postponement of charge. This means your remortgage or new loan takes priority over repaying the Right to Buy discount.

When you exercise your Right to Buy, our interest is automatically registered as a second charge. In the event that the property is repossessed the repayment of the mortgage would automatically take priority.

A deed or letter of postponement is a legal document requiring us to reduce our interest in the property to a third charge.

If the request is being made:

  • during the Right to Buy application process, you will need a letter of postponement
  • within the five year discount repayment period (but after completing Right to Buy), you will need a deed of postponement.

We will only agree to a postponement of charge in the following circumstances:

  • a formal request is made
  • the applicant provides the current market value of the property
  • the applicant provides evidence for what the money will be used for
  • the application is for home improvements
  • we can inspect any home improvements within six months of the work being completed
  • the applicant pays the current administration fee.