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Right to Buy Mortgages

If you're a council or housing association tenant, the Right to Buy scheme could allow you to purchase your home at a discount. At WIS Mortgages, we help eligible tenants navigate the process and secure a suitable mortgage with no broker fees and expert, whole-of-market advice.

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Key Benefits

Buy Your Home at a Discount:
Save up to £96,000 (£127,900 in London) off the full market value.
Use Your Discount as a Deposit:
Many lenders accept the Right to Buy discount in place of a cash deposit.
No Moving Required:
Become a homeowner without relocating—ideal if you love your current home.
Build Equity:
Start investing in your future through homeownership.

How a Right to Buy Mortgage Works

A Right to Buy mortgage is simply a standard residential mortgage used to purchase your council or housing association home once you’ve received your discount offer. The lender works from two figures: the property’s full market value and the discounted price you’ve been offered under the scheme. Because most Right to Buy purchasers are buying at a discount, the loan-to-value ratio on the actual purchase price is often lower than a typical first-time buyer mortgage, even where the buyer has little or no cash savings of their own. This is one of the main reasons the scheme remains attractive to long-term tenants who want to become homeowners without needing a large deposit built up in advance.

Understanding Your Right to Buy Discount

Your discount is calculated based on how long you’ve held a public sector tenancy and the type of property you’re buying, with different maximum discount limits applying in London compared with the rest of England. The council or housing association confirms your exact discount and the property’s market valuation through a formal Section 125 notice — this is the document your mortgage lender will use to assess the application, so it’s worth getting this in place before you start comparing mortgage products. Discount limits and eligibility criteria are reviewed periodically by the government, so always check the current figures on GOV.UK or with your landlord rather than relying on older figures you may have seen quoted elsewhere.

What is a Section 125 Notice?

The Section 125 notice is the official document your council or housing association issues once your Right to Buy application has been approved. It sets out the property’s full market value, your discount amount, and the final price you’ll pay. Lenders rely heavily on this notice during underwriting, as it confirms both the true value of the security they’re lending against and the actual purchase price you’re paying. If there’s a delay in receiving your Section 125 notice, this is usually the biggest bottleneck in the whole process — starting conversations with a broker early means your mortgage application can move quickly the moment the notice arrives.

Which Lenders Offer Right to Buy Mortgages?

A number of high street banks and building societies support the Right to Buy scheme, alongside specialist lenders who are often more flexible around using the discount as a deposit or considering applicants with limited credit history. Not every lender treats Right to Buy applications the same way — some cap how much of the discount can count towards the deposit, and criteria can change from one lender to the next. As a whole-of-market broker, we compare lenders who actively support the scheme so you’re not limited to whichever bank you happen to already bank with.

Right to Buy Mortgages With Bad Credit or Limited Credit History

A less-than-perfect credit history doesn’t automatically rule you out of a Right to Buy mortgage. Because the discount often reduces the loan-to-value ratio significantly, some lenders are more willing to consider applicants with historic missed payments, defaults, or limited credit history than they might be on a standard purchase. That said, outcomes vary considerably by lender and by the nature of the credit issue, so getting tailored advice before you apply is particularly important if your credit file isn’t spotless — a rejected application can sometimes affect your ability to reapply with the same lender.

Repaying the Discount If You Sell

If you sell your home within five years of completing your Right to Buy purchase, you’ll typically need to repay some or all of the discount you received, on a reducing scale — the closer you are to the five-year mark, the smaller the repayment. After five years, you can sell without repaying any of the discount. Some councils also apply a regional cap on how much profit above the discount value you can keep if you sell shortly after purchase, so it’s worth checking your specific Section 125 notice and local authority rules rather than assuming national default terms apply everywhere.

Buying Jointly Through Right to Buy

You don’t have to be the sole applicant on a Right to Buy mortgage. Family members or partners can apply jointly with you even if they aren’t named on the original tenancy, provided they meet the lender’s standard eligibility and affordability criteria. Adding a second applicant can increase your overall borrowing capacity, which is particularly useful if the discounted purchase price is still a stretch on one income alone. Every named applicant on the mortgage will need to go through the same credit and affordability checks as the primary applicant.

Right to Buy Across the UK

Right to Buy in its traditional form is now specific to England — the scheme was ended in Scotland in 2016 and in Wales in 2019, and different rules apply if you’re a housing association tenant rather than a council tenant, where the equivalent scheme is Right to Acquire and typically offers a smaller discount. Northern Ireland runs its own House Sales Scheme with separate eligibility rules. If you’re unsure which scheme applies to your tenancy, your landlord will be able to confirm this before you start the mortgage process.

Why Speak to a Specialist Broker

Right to Buy applications involve moving parts that don’t come up in a standard purchase — coordinating with your council or housing association, working around Section 125 notice timings, and finding a lender genuinely comfortable using the discount as your full deposit. A broker who works with Right to Buy applications regularly can help you avoid delays, understand which lenders are the best fit for your specific circumstances, and make sure your mortgage offer is ready to move as soon as your Section 125 notice is issued.

Eligibility

Eligibility Criteria and Requirements.

Who Can Apply?

 

  • Are a council or housing association tenant in England
  • Have had a public sector tenancy for 3+ years (not necessarily consecutive)
  • Use the property as your main residence
  • Do not have serious rent arrears or pending bankruptcy

What are the Requirements?

 

  • Right to Buy offer letter (Section 125 notice)
  • Tenancy history documentation
  • Proof of income (payslips or self-employed accounts)
  • Bank statements (usually 3–6 months)
  • Photo ID and proof of address

Please note: Meeting these criteria does not guarantee mortgage approval. All applications are subject to underwriting and affordability checks by the lender.

The Challenges

  1. Navigating eligibility and paperwork with the local council
  2. Understanding how discounts affect mortgage options
  3. Limited savings, especially if relying on full discount as deposit
  4. Restrictions on selling the property in future

How we help you

  1. We help you understand the Right to Buy process and what documentation is required.
  2. We source lenders who accept Right to Buy discounts as a full or partial deposit.
  3. We work with you to ensure the loan amount remains affordable, even with no personal savings.
  4. We explain resale restrictions and how they may affect future plans.

How can we help

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How the Application Process Work?

Applying for a mortgage through our service is straightforward

1
Book an Appointment

Book an appointment with one of our advisers to discuss your mortgage requirements. Be transparent about your situation so we make the whole journey much smoother for you.

2
Download MortgagX app

Download MortgagX app, fill in a few key details, select the recommended mortgage product, upload your documents and relax till we get your mortgage sorted.

3
Completion

Enter your new dream home!

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Processing times vary depending on lender efficiency and individual case complexity.

Important Information And Regulatory Disclosure

Risk Warning
Your property may be repossessed if you do not keep up repayments on your mortgage.
FCA Authorisation
This service is provided by WIS Mortgages, which is authorised and regulated by the Financial Conduct Authority.
Fee & Commission Disclosure
We act as a mortgage intermediary and may receive commission from lenders. A fee may be payable for mortgage advice, which will be disclosed clearly in advance.
Adviser Disclosure
This content is for informational purposes and does not constitute personalised financial advice. Mortgage advice will be provided after assessing your individual circumstances.

Frequently Asked Questions

Find answers to some of the most common questions about mortgages, applications, and our services.

Many mainstream banks and building societies, including Halifax, Santander, and Leeds Building Society, support the scheme.

Yes. Some lenders allow the Right to Buy discount to count as your deposit, meaning no upfront cash may be needed.

A good credit history helps, but some lenders may still consider you with minor issues—speak to us for tailored advice.

Yes, but if you sell within 5 years, you may have to repay some or all of the discount.

It can take 2 to 6 months, depending on how quickly your landlord processes the application and how fast your mortgage is approved.

Yes. In fact, using a gifted deposit can improve your borrowing options and reduce the loan-to-value ratio.

 Yes. Lenders will typically arrange their own independent valuation to confirm the property’s value and ensure it meets lending standards.

If you sell within 5 years, you’ll likely have to repay all or part of the discount, on a sliding scale.

Yes. You can apply jointly with family members or a partner, even if they’re not a tenant, as long as they meet the lender’s criteria.

Yes. Some properties—such as those adapted for elderly or disabled residents—may be excluded from the scheme.

Last updated: July 2026

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