Right to Buy Mortgages

‘Right to Buy’ is a Government scheme that gives people who are renting homes in the public sector (either council housing or via a Housing Association) the ability to buy their home at a discounted price, lower than the prevailing market value. 

More recent changes have also made it possible for Housing Association tenants to make the same use of Right to Buy as people renting council housing, under a scheme labelled ‘Right to Acquire’. The qualifying period for Right to Buy has also been reduced – you can now apply to purchase your home if you have been a public sector tenant for three years or more. The maximum Right to Buy discount is now (at time of writing) £84,600 across the whole of England except for London, where it is £112,800, and is set to increase annually in line with the Consumer Price Index (CPI).

In some cases, you can get a mortgage on the Right to Buy scheme without putting down a deposit.

Getting a Right to Buy mortgage is pretty similar to getting a regular mortgage. You can also apply with another person. Most lenders will accept the discount you get on your property as a full deposit.

Even if you have a poor credit history, we can look to help

Those who qualify for Right to Buy can get a discount off the market value of the home they live in. Currently the biggest discount possible is £87,200 across England and £116,200 if you live in London, though these thresholds increase each April. 

How big a discount you can actually get depends on a few factors, including whether you live in a house or a flat, and how long you’ve been a public sector tenant for. Here’s how it works:

Living in a house

• If you’ve been a public sector tenant for between three and five years. Here you’ll get a 35% discount off the market value of your property (up to a max £87,200 or £116,200). So if you live in a property worth £200,000, the Right to Buy discount could be worth £70,000 – meaning you could buy the property for nearer to £130,000.
  
  
• If you’ve been a public sector tenant for longer than five years. After five years, the discount goes up by 1% for every extra year you’ve been a public sector tenant, up to a maximum of 70% or £87,200 across England and £116,200 in London – whichever is lower.

Living in a flat

• If you’ve been a public sector tenant for between three and five years. Here you’ll get a 50% discount off the market value of your property (up to a max £87,200 or £116,200). So if you live in a property worth £140,000, the Right to Buy discount could be worth £70,000 – meaning you could buy the property for nearer to £70,000.
  
  
• If you’ve been a public sector tenant for longer than five years. After five years, the discount goes up by 2% for each extra year you’ve been a public sector tenant, up to a maximum of 70% (again capped at £87,200 or £116,200).

Where your landlord has spent money either building or maintaining your home, this could reduce how big a discount you’re entitled to.

Usually there is no requirement on your part to pay any deposit from your own resources; the discount will form the deposit

Every lender will assess your credit file. We can place you with specialist Right to Buy mortgage lender if you have a poor credit history