Right to Buy Mortgages for Council Tenants | The Right to Buy scheme allows eligible council tenants in England to purchase their rented home at a discounted price. If you have been renting from your local council or housing association for at least three years, you may qualify to buy your home through this government-backed initiative.
The scheme is designed to support long-term tenants in becoming homeowners. It can offer a substantial discount relative to market value, making homeownership more affordable for those with lower or fixed incomes.
How Right to Buy Works
The Right to Buy applies to secure council tenants and, in some cases, to housing association tenants under the Preserved Right to Buy or Right to Acquire schemes. The discount you receive depends on how long you’ve lived in the property, the type of home you live in, and its market value.
- You must have rented for at least 3 years (not necessarily continuously).
- Discounts can reach up to £96,000 across England (£127,900 in London, subject to change).
- The longer your tenancy, the larger the potential discount.
Can You Get a Mortgage for a Right to Buy?
Yes, you can apply for a Right to Buy mortgage, and many lenders accept your discount as your deposit. This means you may not need to save for a deposit at all, depending on the lender’s criteria and the level of discount.
Key features of Right to Buy mortgages:
- Your discount acts as equity in the home.
- No additional deposit may be required.
- You must demonstrate affordability and creditworthiness, as with any other mortgage.
- Additional borrowing may be possible for home improvements or legal costs.
Our advisers are experienced in guiding council tenants through the mortgage application process. Whether you have a strong credit history or have had previous financial challenges, options may be available.
→ Find Mortgage Advisers to help you explore your eligibility and match with lenders offering Right to Buy mortgage solutions.
What If You Want to Sell Later?
There are restrictions on selling your home after buying it through the Right to Buy scheme. If you sell within five years, you will need to repay part or all of the discount. After five years, you may sell without repaying anything.
You may also be required to offer the property to your former landlord or another social housing provider before selling it on the open market, depending on the location and terms.
Other Considerations
Buying your council home entails taking on responsibilities such as maintenance, repairs, and insurance. It is important to plan for these costs before applying. You may also need to budget for legal fees, mortgage arrangement charges, and valuation surveys.
For more guidance on planning your finances and choosing the right protection, visit our Mortgage Protection page.
Are You a Mortgage Professional?
If you’re a mortgage adviser working with Right to Buy clients, you can “Join our Mortgage network” for access to exclusive lender panels, support, and compliance tools tailored to affordable housing products.
Take the First Step Toward Homeownership
Right to Buy enables eligible tenants to convert rent into ownership. With the right mortgage advice and planning, buying your council home could be within reach sooner than you think.
To get started, explore our First-Time Buyer resources or speak to an expert adviser today.
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