Right to Buy Mortgages
Right to Buy lets council and some housing association tenants in England buy their home at a discount, and many lenders accept that discount in place of a cash deposit. The scheme gives you the right to buy. It does not give you the right to a mortgage, and the property itself is often what decides which lenders will help.
- How lenders use the discount as your deposit
- Lending up to 100% of the discounted price
- The flats and construction types that narrow the lender list
- The discount repayment rules and what Parliament is changing
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Tell Us About Your Right to Buy
Share the valuation and discount from your offer notice, the property type, how long you have been a tenant and your income. We will tell you which lenders will consider it and how much you can borrow, with advice built around your circumstances rather than headline rates.
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How a Right to Buy mortgage works
Your landlord values the home and applies your discount. You buy at the discounted price, and the lender normally lends against that price while treating the discount as your equity. On a home valued at £200,000 with a £30,000 discount, you buy at £170,000. A lender lending 100 per cent of that price is lending 85 per cent of the value.
Discounts are set nationally in England. After three years as a public sector tenant, a house attracts a 35 per cent discount and a flat 50 per cent, rising with longer tenancies to a maximum of 70 per cent of value. Since 21 November 2024 every discount is also capped in cash, from £16,000 in London and some other areas up to £38,000 in the South East. Our Right to Buy guide sets out the caps and the qualifying rules in full.
If you sell within five years, you repay some or all of the discount on a sliding scale, and for ten years you must offer the home back to the landlord first. Lenders know this, which is why some limit how much they lend above the discounted price.
You still need money for legal fees, searches and a survey, and the lender will assess affordability on your income in the normal way. The discount solves the deposit problem, not the income one.
Do not wait for the offer notice to talk to a lender. The notice has deadlines, and the property type is often what limits your options, not your income.
At a Glance
Right to Buy lender criteria compared
From each lender's own published criteria, checked 11 October 2026.
| Lender | Maximum lending | Points to know |
|---|---|---|
| Nationwide | Up to 100% of the discounted price, plus the cost of any improvements and up to £500 towards legal fees | No debt consolidation. Housing Benefit is not counted as income |
| Leeds Building Society | Lends on Right to Buy purchases | Lending above the discounted price needs the landlord to agree to its charge ranking ahead of the discount repayment charge. Ex-local authority flats only with satisfactory construction, secure communal access, a proven resale market, a maximum of four floors and no balcony access |
Many other lenders consider Right to Buy on their standard criteria with the discount treated as the deposit. Acceptance turns on the property as much as the applicant.
Why Right to Buy cases are declined, and what is changing
The block. Ex-local authority flats in taller blocks, blocks with a low proportion of privately owned flats, deck or balcony access, and thin resale evidence all reduce the number of willing lenders. Houses on established estates are usually straightforward.
The construction. Concrete and prefabricated systems built after the war are classed as non-standard, and some are defective under the Housing Act unless repaired to an approved scheme. Our guide to non-standard construction explains which lenders still lend.
Your credit. Arrears on the tenancy, defaults or County Court Judgments narrow the field. Our page on Right to Buy with bad credit covers the specialist lenders.
Help from family. If your income alone is not enough, a family member can sometimes join the mortgage on a joint borrower sole proprietor basis. Anyone joining the purchase itself must meet the scheme's own rules.
Proposed reforms. The Social Housing Bill had its Commons second reading on 10 September 2026. It would raise the qualifying period from three years to ten, restructure the discount to start at 5 per cent and rise by 1 per cent a year to a maximum of 15 per cent for houses and flats alike, exempt newly built social homes for 35 years and make the landlord's right of first refusal permanent. None of this is in force. Until the Bill passes and is commenced, today's rules apply.
If you are eligible now, the direction of travel is towards smaller discounts and longer qualifying periods. That is a reason to get advice early, not a reason to rush into a purchase that does not suit you.
Where to go next
The pages most often read alongside this one.
Joint borrower sole proprietor
Family income on the mortgage without joining the purchase.
How we arrange a Right to Buy mortgage
The offer notice sets the timetable, so we work to it from the start.
Review the offer
The valuation, the discount, the property type and any service charges on a flat.
Check the property
Construction, block height, access and resale evidence, before choosing lenders.
Shortlist the lenders
Lenders comfortable with the property and your income, on total cost.
Application
We submit with the offer notice and handle the valuation and underwriting.
Offer and completion
We keep your solicitor and the landlord updated through to completion.
Read more before you buy
Related pages for tenants buying their home.
Buying your council home?
Send us your offer notice. We will tell you which lenders will lend on the property and how much you can borrow.
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Right to Buy Mortgages: Frequently Asked Questions
Can I get a 100 per cent Right to Buy mortgage?
Some lenders lend up to 100 per cent of the discounted price, because the discount gives them equity in the property. Nationwide publishes this, plus the cost of improvements and up to £500 towards legal fees. You still need money for other costs.
Does the discount count as my deposit?
Usually, yes. Lenders lend against the discounted price and treat the discount as your equity. On a £200,000 home with a £30,000 discount, borrowing the full £170,000 is 85 per cent of the value.
How much is the Right to Buy discount?
After three years, 35 per cent for a house and 50 per cent for a flat, rising with longer tenancies to a maximum of 70 per cent of value. Since 21 November 2024 every discount is also capped in cash, from £16,000 to £38,000 depending on the area.
Why would a lender decline my Right to Buy application?
Usually because of the property: a flat in a tall block, non-standard construction, deck or balcony access, few privately owned flats in the block or thin resale evidence. Credit problems and affordability are the other common reasons.
Do I have to repay the discount if I sell?
If you sell within five years, yes, on a sliding scale from 100 per cent in the first year to 20 per cent in the fifth. For ten years you must also offer the home back to your former landlord first.
Can I get a Right to Buy mortgage with bad credit?
Possibly. Specialist lenders consider arrears, defaults and CCJs depending on how recent and how large they are. Our page on Right to Buy with bad credit sets out the options.
Can a family member help me buy?
A family member can sometimes join the mortgage without being on the deeds, on a joint borrower sole proprietor basis. Anyone buying with you must meet the Right to Buy rules themselves.
Is Right to Buy changing?
A Social Housing Bill had its Commons second reading on 10 September 2026. It proposes a ten-year qualifying period and a much smaller discount. It is not law yet, and today’s rules apply until it is passed and brought into force.
Does Right to Buy apply in Scotland and Wales?
No. Right to Buy ended in Scotland in 2016 and in Wales in 2019. It now applies in England only.
Can I let the property after buying it?
Not on a residential mortgage without the lender’s consent. If you later want to let it, you would need consent to let or a buy to let mortgage, and the discount repayment and first refusal rules still apply.
Written and reviewed by Osman Emin, CeMAP, mortgage and protection adviser · FCA register OCE01003 · Updated YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.