Right to Buy Mortgage Brokers
What is a Right to Buy mortgage?
A right to buy mortgage is an option for council or housing association tenants who want to purchase the home they already live in. They can do this through the government-backed Right to Buy scheme, which allows tenants to buy their council home at a significant discount.
This discount is based on factors such as how long they’ve lived in the property and whether it’s a house or flat. Right to Buy mortgages operate in the same way as traditional residential mortgages and everyone buying a council home through the Right to Buy scheme has the same mortgage options as anyone else.
Housing association tenants are eligible for a similar scheme called Right to Acquire, but it does have slightly different eligibility and rules.
We’re here to explain your options and help you find the best deal
Who is eligible for a Right to Buy mortgage?
A Right to Buy mortgage is available to eligible council tenants who wish to purchase the home they currently rent. To qualify you must;
- Be a secure tenant and have lived in a public sector property for at least three years (though these might not be consecutive years)
- Use the property as your main residence.
- Have no legal issues with debt or any outstanding possession orders, as approval depends on your income, financial commitments, and credit history.
How much is the right to buy discount?
It varies depending on whether you live in a house or a flat and it applies to the total time you’ve been a public-sector tenant, not just the time you’ve lived in your current home.
- Houses: You get a 35% discount if you’ve been a public sector tenant for between 3 and 5 years. After 5 years, the discount goes up 1% for every extra year you’ve been a public sector tenant, up to a maximum of 70% or £96,000 across England and £127,900 in London boroughs (whichever is lower)
- Flats: You get a 50% discount if you’ve been a public sector tenant for between 3 and 5 years. After 5 years, the discount goes up 2% for every extra year you’ve been a public sector tenant, up to a maximum of 70% or £96,000 across England and £127,900 in London boroughs (whichever is lower).
How long does a Right to Buy mortgage application take?
- The process usually takes between 8–12 weeks from mortgage application to completion, although this can vary depending on:
- How quickly the council processes your Right to Buy application
- The lender’s underwriting times
- Property valuation and legal work
- Starting early with an Agreement in Principle can help speed things up.
Right to Buy mortgages made simple
Here’s how Mortgage Saving Experts will guide you through the process of a Right to Buy mortgage.
1. Check your eligibility
We’ll start by reviewing your tenancy length, council or housing association status and any credit or legal issues to confirm whether you qualify for the Right to Buy scheme.2. Calculate your affordability
We will assess your income, outgoings and financial commitments to determine how much you can borrow. This includes factoring your Right to Buy discount to see how it affects your deposit and loan-to-value ratio.3. Identify suitable lenders and mortgage options
Not all lenders offer Right to Buy mortgages, so we’ll match you with lenders that do, explain the different mortgage types (fixed, variable, tracker), and highlight which options provide the best rates for your situation.4. Handle your documents
We will help you collect the required paperwork, ensuring all documents meet lender requirements, reducing delays, this includes:
- Proof of identity and address
- Proof of income
- Tenancy documentation
- Financial commitments and debts
- Council Right to Buy offer letter
5. Support your mortgage offer and completion
We will coordinate with your solicitor, the council, and the lender to ensure the completion process goes smoothly. When all the legal formalities are complete and the funds are transferred, you will officially become the owner of your home, and we’ll be there to guide you through every step.What are the benefits of a Right to Buy mortgage?
- You can buy your home at a reduced price, and the discount may count toward your deposit.
- You already know the home and area, reducing uncertainty.
- A lower loan-to-value may help you access better mortgage deals, subject to criteria.
- You have the same options available to you as standard mortgages.
- You gain long-term stability and more control over your property.
- The scheme follows a clear, structured buying process with lender support.
We’re here to explain your options and help you find the best deal
Right to Buy Mortgage FAQs
Is the Right to Buy scheme available everywhere in the UK?
The Right to Buy mortgage scheme is currently only available to eligible council tenants in England. It is no longer available in Wales or Scotland.
Do I need a deposit for a Right to Buy mortgage?
Most lenders require a deposit, typically between 5% and 10% of the property price. In some cases, your Right to Buy discount can be used as part of your deposit, but you’ll still need funds for fees and legal costs.
How much can I borrow with a Right to Buy mortgage?
The amount you can borrow depends on your income, outgoings, credit history, and the lender’s affordability criteria. Most lenders will typically offer between 4 and 4.5 times your annual income, although this varies.
Because the Right to Buy discount reduces the purchase price, many buyers benefit from a lower loan-to-value (LTV), which may improve the mortgage rates available.
Can I make a joint mortgage application?
Yes, you can, but only certain people can join an application. If you are eligible, you may be able to buy with someone who is on the tenancy agreement with you, your spouse or civil partner (As long as they are on the tenancy agreement), or up to three family members who have been living in your home for 12 months immediately before you make the application. All parties to the mortgage have to be on the tenancy agreement.
Will the Right to Buy scheme discount count as a deposit?
Sometimes but rarely. The mortgage lender who offers you the Right to Buy mortgage will give you a much cheaper interest rate because you will use the full deposit as the deposit.
Not all mortgage lenders offer Right to Buy mortgages.
What happens if I sell the property soon after buying it?
If you sell within a set period (commonly five years), you may have to repay a proportion of your discount back to the council or housing association. Longer holding periods can have other obligations, so speak to your broker for details.
