Right to Buy Mortgage FAQ
General information only. This is not financial advice.
Last reviewed: 2026-06-06
How does a Right to Buy mortgage work?
Right to Buy allows eligible council or housing association tenants in England to purchase their home at a discount to its open market value. The discount is calculated based on tenancy length and property type (house or flat) and is capped at £102,400 in London or £76,900 outside London. Most lenders who offer Right to Buy products treat the discount as equivalent to a deposit, meaning you can often borrow up to 100% of the discounted purchase price. The mortgage is assessed on your income and the discounted price, not the full market value.
Do I need a deposit to use Right to Buy?
Many Right to Buy mortgage lenders will lend 100% of the discounted purchase price, meaning no cash deposit is required. The government discount effectively serves as the deposit. However, lender criteria vary — some require a minimum cash contribution of 5% of the discounted purchase price. Having savings available can also strengthen your application and may give access to better rates. It is worth checking with a specialist broker what specific lenders require before applying.
How long do I have to be a tenant to qualify for Right to Buy?
You need at least three years as a public sector tenant in England to qualify. The time does not need to be continuous, and periods with different councils or housing associations can be combined. The longer the tenancy, the higher the discount: from year 3, discounts for houses start at 35% and increase by 1% per additional year up to 70%. For flats, the discount starts at 50% and increases by 2% per year up to 70%. The discount is then capped at the regional maximum (£76,900 or £102,400 in London).
Which mortgage lenders offer Right to Buy products?
Not all lenders offer Right to Buy mortgages. Many mainstream lenders do not participate, particularly those who will not lend above 95% of the purchase price. Specialist lenders and a number of building societies actively offer Right to Buy products and will lend at 100% of the discounted price. The lender panel for Right to Buy is smaller than for standard mortgages, which is why working with a broker who has access to the Right to Buy market is advisable rather than approaching lenders directly.
What happens if I sell the property shortly after buying through Right to Buy?
If you sell within five years of completing a Right to Buy purchase, you must repay part of the discount. The repayment amount reduces over time: sell in year one and you repay 100% of the discount; year two — 80%; year three — 60%; year four — 40%; year five — 20%. After five years there is no repayment obligation. The repayment is calculated on the percentage of the discount relative to the sale price, not the original discount amount — so if the property has risen in value, you repay more in cash terms.
Can I use Right to Buy with bad credit or complex income?
Yes, but you need a lender willing to accept both Right to Buy and your specific credit or income profile. Some Right to Buy lenders have more flexible credit criteria than the wider mortgage market. If you have adverse credit history — such as missed payments, defaults, or a CCJ — the pool of Right to Buy lenders narrows further. Similarly, self-employed or contractor income may not be accepted by every Right to Buy lender. A specialist broker familiar with this niche is the most effective way to identify who will lend under your specific circumstances.
Risk warning
Your home may be repossessed if you do not keep up repayments on your mortgage. Think carefully before securing other debts against your home. This article is general information only and does not constitute financial advice.
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