A guide to Right to Buy mortgages
Right to Buy offers council tenants the chance to purchase their home at a substantial discount. This guide covers how the scheme works, what you need to qualify, and how to arrange the mortgage.
In this guide
What is Right to Buy?
Right to Buy is a government scheme that gives secure council tenants in England the legal right to buy the home they live in at a discount below its market value. The scheme has been running since the 1980s and has helped millions of tenants become homeowners.
The discount you receive depends on how long you have been a tenant, whether the property is a house or a flat, and where it is located. The longer your tenancy, the greater the discount, up to the regional maximum.
Who qualifies for Right to Buy?
To qualify you must be a secure tenant of a council property in England and have spent at least three years as a public sector tenant. This does not have to be three continuous years or three years in the same property — time spent as a tenant of any council, housing association, or armed forces accommodation counts.
Some properties are excluded, including sheltered housing for elderly or disabled people, properties scheduled for demolition, and homes in certain rural areas with specific restrictions. Your council will confirm whether your property qualifies when you submit your application.
How does a Right to Buy mortgage work?
Your Right to Buy discount acts as your deposit. If the market value of your home is £200,000 and your discount is £80,000, you only need a mortgage for £120,000. Some lenders will lend 100% of the discounted price, meaning you may not need any additional savings.
Not all lenders offer Right to Buy mortgages, but many mainstream and specialist lenders have products designed for this purpose. Other government-backed schemes like Help to Buy work differently but share the goal of making homeownership more accessible. A broker can identify which lenders are most competitive and most likely to approve your application based on your income and credit profile.
The application process
Start by completing a Right to Buy application form (RTB1) and sending it to your council. They have four weeks for houses or eight weeks for flats to respond with a Section 125 notice, which sets out the price, discount, and terms of the sale.
Once you have the offer, you can apply for a mortgage. If you are unsure what a mortgage involves, our guide covers the basics. There is no set time limit to complete the purchase, but it is best to move quickly. Your adviser can help you get a mortgage agreement in principle before the formal offer arrives so you are ready to proceed.
Related guides
More guides in our right to buy mortgage hub.
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