Right to Buy Mortgages

The Right to Buy scheme is still available in England, but it is no longer available in other parts of the UK. In Wales, the scheme closed in January 2019, meaning tenants in Welsh council or housing association properties can no longer apply. Scotland also ended its version of the scheme in 2016.

If you live in England and are renting from your local authority or a housing association, you may still be eligible to buy your home through the Right to Buy scheme.

The scheme allows long-term tenants to purchase their property at a discounted price, with the size of the discount depending on how long you’ve lived there and the type of property.

The scheme has been around for decades, and while there are currently no official plans to end it in England, future changes are always possible.

If you’re thinking about buying your home and believe you qualify, it’s a good idea to start the process as soon as you can. We’ll help you understand your eligibility and explore the most suitable Right to Buy mortgage options to support your application.

Yes, it’s entirely possible to get a mortgage when purchasing your home through the Right to Buy scheme. Many lenders offer mortgage products specifically designed for applicants buying a property under this scheme. These are known as Right to Buy mortgages, and they take into account the discount you’ll receive from your landlord.

The main difference between this and a standard mortgage is how the deposit is handled. Instead of saving up separately, most applicants can use the Right to Buy discount in place of a deposit. Lenders will then assess the remaining mortgage based on your income, affordability, and credit history.

You’ll still go through the usual application steps: providing income documents, passing affordability checks, and undergoing a credit assessment. But lenders who work with Right to Buy mortgages understand how the scheme operates and are more familiar with the paperwork involved.

Whether you are employed, self-employed, or have a more complex income setup, we’ll help you find the right lender and support you through every stage of the process.

Applying for a Right to Buy mortgage starts with your local authority or housing association, not the mortgage lender. You’ll need to complete a Right to Buy application form (RTB1) and submit it to your landlord.

If you’re eligible, they’ll send you a formal offer known as a Section 125 notice, which outlines the property’s market value, the discount you qualify for, and the purchase price.

Once you’ve received the offer and decide to go ahead, that’s when the mortgage application begins. You’ll need to provide documents that show how much you earn, such as payslips, tax returns, or business accounts, depending on how you’re paid.

The lender will carry out affordability checks and review your credit history before making a decision. Because timing can be tight once the offer is accepted, it’s worth speaking to a mortgage advisor early in the process.

We’ll explain what documents you need, give you an idea of how much you could borrow, and match you with lenders that offer Right to Buy mortgage products suited to your situation. Starting with a conversation can save you time and make the entire process easier.

One of the biggest advantages of a Right to Buy mortgage is that you may not need to save a traditional deposit. The discount offered through the Right to Buy scheme is often accepted by lenders in place of a deposit. This means that, in many cases, you can borrow the full purchase amount without putting in additional savings.

The value of your discount depends on how long you’ve lived in the property, the type of property, and whether any improvements have been made. Some applicants receive discounts of tens of thousands of pounds, which can significantly reduce the size of the mortgage.

While many lenders will accept the discount as your full deposit, others may still ask for a small cash contribution, especially if you have a limited credit history or if the discount doesn’t cover the lender’s deposit requirement.

We’ll look at the size of your discount, review your financial background, and recommend lenders who accept the discount in full, so you don’t need to put down any additional funds unless absolutely necessary.

The amount you can borrow on a Right to Buy mortgage will depend on your income, the value of the property, the size of your discount, and the lender’s affordability criteria.

Each lender uses its own method for calculating how much you can borrow, but most will base it on a multiple of your annual income and how affordable the monthly payments are when measured against your other financial commitments.

In most cases, the Right to Buy discount helps reduce the loan-to-value of your mortgage, which can work in your favour. It may improve your chances of being accepted and could unlock more competitive rates, especially if you do not need to borrow the full market value of the home.

As a rough guide, some lenders will offer up to four or five times your income, but this will vary depending on your circumstances. If you are applying jointly, both incomes will be taken into account.

Our mortgage advisors will look at your income, debts, and property details, then calculate how much you could borrow through a Right to Buy mortgage. We’ll also explain how the discount affects the loan amount and help you compare offers from lenders who support the scheme.

Once you receive your formal Right to Buy offer notice from your landlord, you typically have 12 weeks to accept the offer.

This document, known as the Section 125 notice, includes details such as the property’s market value, the purchase price after discount, and any terms of sale.

If you do not respond within the 12-week period, your landlord may send a reminder. If there is still no response, the offer can be withdrawn.

That means starting the application process again if you decide to proceed later. It’s important to use this time wisely, especially when arranging your Right to Buy mortgage.

This window is when you should speak with a mortgage advisor, get your documents in order, and move ahead with your application.

We’ll help you stay on track with timescales and make sure you’re ready to move forward before the offer expires.

The Right to Buy discount you receive depends on how long you’ve been a public sector tenant and the type of property you’re buying.

For houses, the discount starts at 35 percent and increases each year after five years. There is a maximum cap on the discount, which is reviewed annually.

In England, the current maximum Right to Buy discount is over £96,000, and in London boroughs, it can be higher due to property values.

The discount amount is confirmed in your Section 125 notice and can be used to reduce the purchase price or act as your deposit when applying for a Right to Buy mortgage.

We’ll help you understand how much your discount is worth and how it affects your borrowing options.

Yes, it is possible to get a Right to Buy mortgage with bad credit, although your choice of lenders may be more limited.

If you have missed payments, defaults, or other credit issues, some high street lenders may not be suitable, but there are specialist lenders who take a more flexible view.

These lenders look at your current financial position and how well you manage your money now. The size of your discount may also work in your favour, especially if it lowers the loan-to-value.

In many cases, the discount itself strengthens your application by reducing how much you need to borrow. We work with lenders who offer Right to Buy mortgages for applicants with poor credit history.

Our mortgage advisors will assess your situation, explain what lenders are likely to consider, and guide you through how to prepare your application.

Receiving universal credit does not automatically prevent you from buying your council house through the Right to Buy scheme.

You will still need to pass a mortgage lender’s affordability checks, which assess whether your income is enough to cover the monthly repayments.

Universal credit can be considered as part of your overall income, but most lenders will want to see additional income such as part-time or full-time work, self-employment, or other regular sources.

If your universal credit includes housing costs, these will usually stop once you become a homeowner. The discount you receive under Right to Buy may reduce the amount you need to borrow, which can help make the mortgage more affordable.

We’ll take the time to understand your income and match you with lenders who are open to Right to Buy mortgage applications involving universal credit.

Yes, once you’ve bought your property through the Right to Buy scheme, you can apply to release equity by remortgaging or taking a further advance.

This means borrowing more against your home to raise money for things like home improvements, clearing debts, or other personal reasons.

The process works in much the same way as any standard remortgage, but there are a few extra rules to be aware of. If you’re still within five years of your original purchase, selling or remortgaging may trigger a repayment of some of the discount you received.

Some lenders may also ask whether permission is needed from your local authority before proceeding, particularly if you’re still within the ten-year pre-emption period.

Lenders will assess how much equity you’ve built up, your current mortgage balance, and whether your income supports the new borrowing. If your property has gone up in value since you bought it, this could increase how much equity is available to release.

We’ll help you work out how much you could release, talk you through the options available, and check which lenders support this kind of borrowing after a Right to Buy purchase.