What is a Right to Buy mortgage?

If you’re renting from the council or a housing association and want to buy the place you already call home, a Right to Buy mortgage could be just the thing. Right to Buy is a government-backed scheme that gives eligible tenants a potentially chunky discount on the purchase price.

Some lenders will let you use your Right to Buy discount in place of a traditional deposit, which can be a real game-changer if saving up a big lump sum feels out of reach. Some lenders might still ask for a deposit, though, so it’s worth comparing deals carefully.

The size of your Right to Buy discount depends on how long you’ve been a tenant at the property, and whether you’re buying a house or a flat. It starts at a 35% discount after three years of tenancy for houses and 50% for flats. After five years, the level of discount climbs each year you’ve been renting, up to a maximum level.

Are you eligible for a Right to Buy mortgage?

Not all lenders offer Right to Buy mortgages, but of those that do, the rules can vary between them. Generally though, here’s what they’ll check:

Right to Buy eligibility

The property usually needs to be your main home, self-contained, and you’ll need at least three years as a public sector tenant under your belt.

Your income

Lenders will look at what you earn when deciding how much to lend. Typically, you can borrow up to four and a half times your annual income, or combined annual income if applying for a joint mortgage. Some providers may offer you more, so comparing is essential.

Affordability

You'll need to demonstrate that you can comfortably afford all your mortgage payments, in addition to your other financial commitments like bills for your existing borrowing, utilities and childcare, for example.​

Credit history

Whilst there isn’t a specific credit score required for a mortgage, having a higher score can boost your chances of being approved. It might be worth checking to see if there is anything you can do to improve your report before you apply for a mortgage.

Every lender’s a bit different, so it’s very important to compare your options to find the right fit for your situation.

How much can I borrow with a Right to Buy mortgage?

Many mortgage lenders offer up to around 4.5 times your annual earnings, though some may allow you to borrow more. Going off the typical figure, if you earn £50,000, you might be able to borrow up to £225,000. If you apply jointly with someone earning £30,000, that total could rise to £360,000.

Just bear in mind that your final offer will depend on factors like your affordability, existing borrowing and deposit size. Income’s just part of the picture. Here’s what else a lender might look at when assessing your application:

  • Monthly outgoings: Lenders will consider your regular expenses like bills, credit card payments and childcare costs to make sure the mortgage is affordable for you both.

  • Affordability stress tests: Lenders will check if you could afford your mortgage if interest rates rise. If you’re borrowing more for things like home improvements, lenders will also want to ensure you can handle the increased payments.

  • Equity in your home: The more equity or deposit you have, the better your deal. A lower LTV ratio can help you access more competitive rates.

  • Creditworthiness: A solid credit report can really boost your chances of approval, so be sure to check it ahead of your application to see if there is anything you can do to improve your score.

One more thing… your home could be repossessed if you don’t keep up repayments on your mortgage, so make sure you’re comfortable with what you can afford before taking the plunge.

What costs should I budget for when arranging a Right to Buy mortgage?

When applying for a Right to Buy mortgage, remember there are a few costs you’ll need to keep in mind to avoid any surprises:

  • Valuation fees: Lenders will want to know your property's value, so they'll arrange a valuation. Costs can vary, but it's wise to budget for this.​

  • Legal fees: Whether it's a solicitor or conveyancer, you'll need legal help to navigate the process.​ Legal fees for home buying are typically around £2,000 (including VAT at 20%), but the exact cost can vary depending on the property and how complex the work is.

  • Local searches: Your solicitor will also carry out local searches – usually costing £250–£300.

  • Arrangement fees: Some lenders charge a fee to set up your mortgage. Expect to pay anywhere between £1,000 to £2,000 or more. ​

  • Early repayment charges (ERCs): Planning to pay off your mortgage early? Be aware of potential ERCs, which can apply if you overpay beyond a certain limit.

  • Survey costs: If you're considering a detailed property survey, this will be an additional expense to keep in mind.​

By considering all of these costs, you can keep your mortgage process running smoothly without any unexpected financial bumps along the way.

Mortgage guides

Answering your questions about Right to Buy mortgages

Page updated on 18th September 2025, Reviewed by Richard Groom