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Right to buy mortgage holders ‘potentially owed compensation’

If you bought your house from the council under the Right to Buy scheme, you may be able to claim thousands in compensation, says Kirkby Solicitor Mark Baker.

Many of us have taken advantage of the right to buy, introduced by the Thatcher government back in the 1980’s, to buy our former council homes. The scheme’s big incentive was that, the long you had lived in your home, the greater the discount you would get when you bought it from the council. In some cases, buyers received a 60% discount under the scheme, compared to the market value of their homes.

However, in recent years, here at Canter Levin & Berg Solicitors, we have become aware of complaints made by people who took out a mortgage under the Right to Buy scheme. Many of those who decided to use the right to buy to purchase their home have found they are facing larger repayments than expected and that these payments are potentially leaving them thousands of pounds out of pocket.

We’ve been investigating cases of mortgage mis-selling here in Kirkby and across Merseyside and if you purchased your home under the right to buy scheme, we’d like to hear from you too. We’re currently collecting information on dodgy practices employed by Right to Buy mortgage brokers, such as pushing people to take out mortgages for more than they actually needed to buy their homes.

This kind of mis-selling could have cost you thousands in extra repayments over the course of your mortgage, whilst earning the mortgage brokers a tidy profit. As solicitors, we don’t think that it’s right that you should have to lose out on this money, which is why we have already started work to help you recover this money from your mortgage brokers.

I think I may have been mis-sold a right to buy mortgage. What should I do now?

To find out if you can claim compensation for a mis-sold right to buy mortgage, call our dedicated helpline on 0151 345 0131. Alternatively, if you're on Merseyside you can drop into our Kirkby or Liverpool City Centre offices, where our staff are waiting to hear from you. Remember, you have nothing to lose, and potentially thousands of pounds in Right to Buy compensation to gain, if you choose to make a claim.

By Mark Baker