Woman, 54, will be mortgage free in 6 years after securing £69k discount on home

Paula Horton, 54, and her partner Adrian Keyworth, 50, got a £69,000 discount on their home and didn’t need to pay a deposit.

The pair took advantage of the Government’s Right to Buy scheme which lets council tenants buy the property they rent.

The Government offers these houses at a reduced rate to help the people renting the properties afford it and be able to get onto the housing ladder.

Paula and Adrian were able to buy their three-bedroom council house in Hull for £69,000 less than what it is originally worth – without paying a deposit, The Sun reported.‌

Paula said: “Because we didn’t need to save up for a deposit, we didn’t need to put too much aside.

“I got a cash gift of £1,500 from family to cover the costs of buying a house including solicitors fees and searches.”

They paid £29,250 even though the house is worth almost £100,000.

The market value of the property stands at £98,392 but Paula and Adrian got it 70 percent cheaper as they had lived there for 33 years.

Paula continued: “The sale was completed in August 2022.

“We took out a mortgage of £29,500 for the house, and we didn’t have to pay a deposit – that’s because many lenders don’t require one for a Right to Buy purchase.

“The mortgage term is six years at a five-year fixed rate of 1.98 percent – for the final year we will go onto a variable rate.

“We worked out that it would be feasible to pay off our mortgage in six years, which will work out great as it will be just before I retire.

“The monthly mortgage repayments are around £430 a month.”

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One of the big advantages of Right to Buy is that people don’t have to save for a deposit because they can use their Right to Buy discount instead.‌

The amount of discount someone can get depends on how long they have lived at their council house.

Public sector tenants can get a 35 percent discount if they have been living in their council home for three to five years.

After five years, people get an extra one percent for every year after they are a public sector tenant.

To qualify as a public sector tenant, people need to rent their home from the local authority or a registered social landlord, such as a housing association.

However, the maximum the discount can reach is 70 percent, or £87,200 across England and £116,200 in London boroughs.

Paula concluded: “I can’t believe I managed to get a house for such a small sum of money, and it all came at the perfect time to retire.”

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