Right To Buy Mortgage

Sterling_Wealth_right_to_buySince the government launched the policy in the 1980s, the Right To Buy scheme has given millions of council house tenants the right to own the houses they live in.

The recent government has increased the access that tenants have to the scheme, making council house purchasing more widespread than ever before.

If you are thinking of purchasing your own council house, we will help you explore what your mortgaging options are and will answer the question ‘what is right to buy?’


If you have previously asked: Can I buy my council house?’, there are some clear rules set out by the government.

In the past five years the government has relaxed the eligibility criteria over the last five years, meaning that tenants will have the right to buy their own homes if:

  • They are secure tenants.
  • It is their only home.
  • The property is self contained (ie, not linked to another property in some way).
  • For five years (not necessarily consecutive ones) they have had a public sector landlord.

If you tick any of these boxes, you are eligible and you can read on to the next section about financing.


 The good news is that for council house tenants hoping to buy their own property, considerable discounts apply.

The maximum discount that can be offered by law is £77,900 (which rises to £103, 900 with London weighting).

Even though there will be considerable financial incentives offered to encourage you to become a home owner, it is still a major financial commitment so choosing the right mortgage deal is essential.

Not only will you have to pay a monthly mortgage, but you will also have to pay for incidental costs such as stamp duty and solicitors fees.

Normally a bank will require a deposit to be paid on a mortgage, typically 20 percent of the property’s value.

However, with Right to Buy Mortgages, the fact that a deposit is offered by the government is normally enough to convince the bank to waive the need for a deposit.

Other than this, right to buy mortgages are no different than any other kind of home loan and are offered on the same basis.

Each bank has its own lending criteria that you will need to understand before you apply.

You will need to pass a credit check and the banks now have a legal duty to ensure you can repay the amount you borrow.

This means that lenders will ask some detailed questions about your finances and how much additional debt you have and what outgoings you regularly have.

There might be luxuries you can put on hold while you apply for a mortgage, like gym membership or a satellite television subscription.

By freeing up extra cash, you help the mortgage advisor to help you get the home loan for your council house.


Applying for a first mortgage is complicated and has become more challenging in recent years with increased rules and regulations.

If you would like some expert, impartial guidance on applying to buy your council house and accessing the funding you need, click here for details.