Right to Buy Mortgage Scheme is specifically available for tenants in England interested in buying their council home. It is also backed up by the government, giving credit-savvy individuals an opportunity to buy their first home in the country. 

At needingadvice.co.uk Ltd, we are frequently asked about the RTB scheme and deposit amount required. So, in this mortgage guide, we will discuss the key concerns regarding the Right to Buy Mortgages. 

Eligibility Criteria for Right to Buy(RTB) Mortgage Scheme

To check your eligibility for the Right to Buy mortgage scheme, you can visit ownyourhome.gov.uk and take the eligibility quiz. The recent changes in Housing Association Tenants affected the qualification criteria for the Scheme for occupants of housing association property. Currently, the RTB scheme is available only in England. If you live in Scotland, please do note that this Scheme is abolished completely, and you can check the Scotland Government website for further details.

The Scheme was also stopped in wales in 2019, but in Northern Ireland, only secure housing executive and housing association tenants still have the RTB scheme in which you could claim a maximum discount of £24,000. The discounted amount depends on your stay and the purchase price of the property. For further information on the Scheme, you can contact for legal advice from specialist advisors.

What is the deposit requirement for the Right to Buy Mortgage?

All the mainstream lenders have different deposit requirements for RTB loans. Some lenders could only need 5-10% of the deposit regardless of applicable discounts, background or credit status, whereas other lenders could offer mortgages without any deposit.

It is important to note that RTB mortgage without any deposit means lenders may offer you 100% of Mortgage and accept RTB scheme discount as the deposit on the property only if you fit into the lender’s eligibility criteria. For example, if you are a current council tenant for five years and the property value is £250,000, your right to buy discount is £80,900 or 35%. Therefore, it implies that the discounted property purchase price would be £169,100.

Finding a lender willing to offer to accept the RTB discount would not be an easy task. You need to contact a financial broker before starting your application.

What are the potential credit issues that you need to consider before applying for a loan?

Poor credit score when applying for a right to buy Mortgage could impact your mortgage application. Please find the list of potential credit issues that you may need to know before starting the application.

  • Adverse Credit Overview
  • Low/Poor Credit Score
  • Mortgage Arrears
  • Defaults
  • County Court Judgments(CCJs)
  • Individual Voluntary Arrangements(IVA’s)
  • Debt Management Plans(DMP’s)
  • Bankruptcy
  • Repossession

If you have a poor history of bad credit, you don’t need to worry. At needingadvice.co.uk Ltd, we work with specialist lenders who can approve your Right-to-Buy mortgage application.

How to buy a Mortgage with a bad credit history?

Many changes were introduced in 2015 for the Right to Buy Scheme. One of the major amendments was to include Housing Association Properties. The Scheme is beneficial for lower-income tenants who can now start early to get onto the property ladder. The Scheme is also available for individuals who have been a council tenants for at least three years but suffering from bad credit history. Some mortgage lenders have changed their attitude towards tenants with poor credit history and started adopting new criteria for accessing the credit score. These lenders could be reached through a specialist adviser, such as needingadvice.co.uk ltd.

Step by Step Process

  • The first step is to contact a specialised mortgage broker who will help you with the right-to-buy mortgage application.
  • The Mortgage Advisor will access your application and check your eligibility for the mortgage application.
  • After that, you will start your mortgage application by submitting it to the Housing Council, which could take approximately four weeks in documentation review before the council appoints a local surveyor to check the value of your property.
  • In the next step, the appointed surveyor returns the valuation report to the council, which then produce a right to buy offer.

What to do Now?

The whole process could take up to 4 to 8 weeks, and the council tenant would have 12 weeks from the offer issue date to take up the offer or reject it. Please also note that the council has limits for the right to buy offers per tenant, so its better to accept the offer produced by the council and get onto your property ladder. Approximately two million tenants have taken the benefit of this Right to Buy Scheme since the start. The Scheme enables to claim maximum discount on a council property for a household. Buying a property is a big decision of life and should not be taken lightly. It is important to start your mortgage application with a piece of expert advice. At needingadvice.co.uk Ltd, we can help you with the best and most suitable financial advice for your Right to Buy Mortgage Application with the lowest deposit possible. Feel free to contact us and book your first appointment.


1. What is Right to Buy?

Right to Buy government scheme was first introduced in 1980, especially for council house tenants. Eligible tenants are automatically given the right to purchase their homes with substantial discount amounts.

2. Am I eligible for the Right to Buy a Mortgage?

Maybe yes or no. To find out, please feel free to take this eligibility quiz for the Right to Buy Mortgage Application for purchasing council house.

3. Is the extension of Right to Buy going to affect housing association tenants?

Yes, because of this, now there are around 2.5 million housing association tenants available in England.

4. Is the Right to Buy Government Scheme also available in Northern Ireland?

Yes, the Scheme is currently available in Northern Ireland, and the maximum discount that you can receive is £24,000

5. How long does the right to buy mortgage process take?

The complete process could take 4 to 8 weeks, depending on the application. After receiving the offer, as a mortgage applicant, you have only 12 weeks to accept or deny the offer from the council.

6. Do I need a deposit for Right to Buy?

No, you don’t need the deposit if you are an eligible tenant and a good credit history. If you have a bad credit score, you need to contact a financial adviser who can help you find bad credit mortgage lenders.

7. Do I need to pay stamp duty on the right to buy?

Yes, stamp duties is payable on all properties in the United Kingdom, including the right to buy applications.

8. What is the maximum discount on the Right to Buy Scheme?

The maximum discount amount for the Right to Buy Scheme depends on various factors. You could contact a mortgage broker to get the exact amount for your profile.

9. Is right to buy available for part owners of the property?

No, right to buy option is not available for part owners. You should need to discuss with your landlord if you are interested in fully own the house.

10. Can I make a joint application for the RTB scheme?

Yes, you can make a joint application for the Right to Buy Scheme, but only limited people are allowed for the application. It is better to consult a financial broker for further details.