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Right to Buy Mortgages Explained

Make your home yours

Right to Buy mortgages work in the same way as typical residential mortgages. In fact, anyone purchasing their council house through the Right to Buy scheme has access to the same mortgage deals as anyone else.

Discover your borrowing power with NO credit checks, only takes a few minutes!

Check your discount
How much could you borrow?

Right to Buy Mortgages Explained

Make your home yours

Right to Buy mortgages work in the same way as typical residential mortgages. In fact, anyone purchasing their council house through the Right to Buy scheme has access to the same mortgage deals as anyone else.

Discover your borrowing power with NO credit checks, only takes a few minutes!

Check your discount
How much could you borrow?
Author's Avatar Author: Carl Shave CEO and co-founder

8 mins

Updated: September 11th, 2025

Contents

8 mins

Updated: September 11th, 2025

In this article

What is the Right to Buy scheme? Right to Buy discounts Applying for a Right to Buy mortgage Which lenders offer Right to Buy mortgages? Right to Buy mortgage brokers

What is the Right to Buy scheme?

The Right to Buy scheme allows existing tenants of public-sector homes in England to buy the property they currently rent. This will be at a price discounted below the market value based on how long you have lived in the property [1]. Similar schemes are available in Northern Ireland, but the rules are slightly different.

The scheme has been around since 1980, but in 2012 discounts rose from their original state to a cap of £75,000 nationwide, later increasing to £100,000 in London.

Until the 20th of November 2024, discounts have been tied to inflation, reaching a cap of £136,400 in London and £102,400 for the rest of the country.

Due to the erosion of council housing stock, the government announced that, starting from the 21st of November 2024, the available discounts we’re reduced back to the original caps set in 1980.

Right to Buy discounts

Right to Buy discounts are available on the market value of your home if you’re eligible for the scheme when you purchase your home.

Eligibility criteria

The discount you can get depends on where you live and whether you apply before or after 21st November 2024.

The discount is based on whether you’re purchasing a house or flat, how much your house is worth, and how long you’ve been a public sector tenant.

If you’re purchasing with someone else, the number of years as a public sector tenant will be based on the person with the longest tenancy.

Typically, you’ll need to repay some or all of your discount if you sell the property within 5 years.

Your discount may also be reduced if you have previously taken advantage of the Right to Buy scheme.

Flats

You receive a 50% discount if you have been a public sector tenant for 3–5 years. After 5 years, the discount rises by 2% for each additional year of tenancy, up to the maximum discount amount.

Houses

You receive a 35% discount if you have been a public sector tenant for 3–5 years. After 5 years, the discount increases by 1% for each additional year of tenancy, up to the maximum allowed discount.

If you apply before 21st November 2024 

The maximum discount you can get is whichever is lower:

  • 70% of the value of your property
  • the maximum discount for your region
Region Maximum discount
London boroughs £136,400
Rest of England £102,400

If you apply on or after 21 November 2024

The maximum discount you can get is whichever is lower:

  • 70% of the value of your property
  • the maximum discount for your region
Region Maximum discount Exceptions
North East £22,000 Not applicable
North West £26,000 Not applicable
Yorkshire and the Humber £24,000 Not applicable
East Midlands £24,000 Not applicable
West Midlands £26,000 Not applicable
Eastern £34,000 £16,000 in the district of Watford
South East £38,000 £16,000 in the areas of Reading Borough and West Berkshire, Hart District, Oxford and Vale of the White Horse District, the boroughs of Tonbridge and Malling, Epsom and Ewell, and Reigate and Banstead
South West £30,000 Not applicable
London £16,000 £38,000 in the boroughs of Barking and Dagenham and Havering

There are some restrictions to the discount, for example, if your landlord has spent money maintaining your home, you may receive less discount.

You won’t be eligible for any discount if your landlord has spent more money on the property than it is currently worth.

Applying for a Right to Buy mortgage

You can apply for a Right to Buy mortgage by sending a completed application form to your landlord, who will respond by sending you an offer. This will outline the following:

  • The price they believe you should pay for your property
  • Who worked out the price?
  • How was your Right to Buy discount calculated?
  • What is included in the price: a description of the property and any land.
  • Estimates of service charges (for a flat or maisonette) for the first 5 years
  • Any existing problems with the property’s structure

Once you have received an offer, you have 12 weeks to confirm your intention to buy. You also have the right to request an independent valuation if you believe the landlord has overvalued your home. You must request this within 3 months of the offer.

Yes, it is possible to have someone on the mortgage who is not on the Right to Buy paperwork, but few lenders will consider this. Typically, a lender will wish to see that the names quoted on the Right to Buy paperwork mirror that of the mortgage, then in turn the property ownership.

Some lenders may look at arranging the mortgage in joint names even if the Right to Buy is in your name only. For some, it’s possible to arrange a mortgage on a joint borrower, sole proprietor basis. This works very similar to a guarantor mortgage.

Which lenders offer Right to Buy mortgages?

Some lenders advertise ‘Right to Buy’ mortgages tailored specifically to this type of purchase; others will consider each mortgage application, including Right to Buy, on a case-by-case basis. In either event, if the lender’s criteria is met, they will look to agree the mortgage.

Some Right to Buy mortgage lenders will consider lending more than the discounted purchase price, in order to allow for home improvements to be made – so if your kitchen or bathroom need updating, you could look at borrowing additional funds towards this.

One thing to bear in mind, however, is that if you approach a lender directly, they can only discuss their own mortgage products with you; you will not get an idea of the market as a whole. While you might by chance approach the lender offering the best deal for you, it is possible there may be better offers elsewhere.

Right to Buy mortgage brokers

At Just Mortgage Brokers, we work with many lenders offering Right to Buy mortgages. If you’re looking to buy your council property, we can help you find a mortgage deal that suits you. Even if you have a poor credit history, that doesn’t mean you won’t be eligible for a Right to Buy mortgage.

As with any financial product, it’s always worth seeking expert advice first. At Just Mortgage Brokers, we advise on the Right to Buy options that are available to you. Our team will happily guide you through the whole application process. We work closely with leading brands and smaller specialist lenders, meaning we have access to exclusive mortgage deals to suit all requirements.

We work with over 90 lenders to find you the best deals. Book your free consultation now!

Frequently asked questions

Yes, it’s definitely possible to get a bad credit Right to Buy mortgage. However, it’s not always a straightforward process.

Many specialist lenders have now entered the Right to Buy market, providing financing for eligible tenants with bad credit. However, the terms and rates offered to you may be affected more than if you had a clean credit record.

You may need to check the options that are open to you via these specialist mortgage lenders. Many of them don’t operate on the high street or online. Instead, they are only accessible through specialist advisors, such as our team here at Just Mortgage Brokers.

The Right to Buy scheme was introduced to allow tenants the ability to own the home they live in. Its design did not enable the property to be rented. Therefore, only residential mortgages are available when you look to purchase.

As life events and plans change, the council may permit you to rent the property out during the . You should always seek their permission before doing so. After the clawback period, you can use the property as you wish.

Not many lenders will permit this, as the Right to Buy discount may need to be paid back in part or in full if you sell the property. Although, during the clawback period, there are usually some lenders who will consider it. Strict terms will apply so you’ll need to check this all prior to making any plans.

Yes, you can remortgage your Right to Buy property. Essentially, lenders consider this in the same way as any other mortgage application. The main exception to the rule is that the discount clawback period still needs to be taken into consideration.

Also, there will likely be a charge registered by the council for the discount provided. This charge, if still in place, will create a small amount of additional legal work that will incur an additional cost.

When taking out a mortgage for Right to Buy you do not need to have a deposit. Many Right to Buy mortgage lenders will accept the discount provided instead. This is not the case for all lenders, however, so you may find you still need to contribute some towards the purchase.

The good news is that many lenders consider the discount as a deposit. They will typically offer you rates applicable for the lower loan-to-value this provides against the full market value. Do note that there will still be costs involved when buying your home, so ensure you have adequate funds to cover these.

About the author

Author's Avatar

Carl Shave: CEO and co-founder

Carl Shave has been involved in the mortgage & finance industry since leaving education and is one of the co-founders of Just Mortgage Brokers. He has written guest posts and provided journalist comments for companies such as The Times, FT Adviser, Mortgage Strategy, Mortgage Solutions and others, demonstrating his extensive industry knowledge.

Qualifications:
Certificate in Mortgage Advice and Practice (CEMAP): Year Attained: 2001

FCA Profile
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