Buying your council home
Buying your council home can be more straightforward than a standard purchase, but the lender still needs to understand your discount, income and affordability. We help Right-to-Buy applicants find suitable mortgage options and understand what may be possible.
Right-to-Buy mortgages can work differently from standard purchases because your council discount may affect the deposit and loan-to-value calculation.
Some lenders may accept your Right-to-Buy discount as your deposit, meaning you may not need a separate cash deposit.
Your mortgage is usually based on the discounted purchase price, not simply the full market value of the home.
Not every lender treats Right-to-Buy cases the same way. The right route can depend on your income, credit history and discount.
Use our Right-to-Buy mortgage calculator to estimate your discounted purchase price, possible mortgage amount and whether your discount could cover the deposit.
Many Right-to-Buy buyers ask whether they need a cash deposit.
In some cases, the discount you receive from the council can be treated like your deposit by the lender. This can make buying your council home more realistic if you have steady income but limited savings.
This is not automatic. Some lenders may still ask for a cash deposit, and your options can depend on your income, credit history, property value and the size of your discount.
You'll usually need a cash deposit from savings, a gift or another accepted source.
We can help you understand whether your discount, income and wider circumstances are likely to fit suitable lender criteria.
A Right-to-Buy discount can reduce the amount you need to borrow, but lenders still need to check whether the mortgage is affordable.
They may look at:
We'll help you understand what lenders may focus on before you apply, so your case can be presented clearly from the start.
Discounted purchase price
£180,000 home − £45,000 Right-to-Buy discount = a £135,000 purchase price. In this example, the buyer is not borrowing against the full £180,000 market value — the mortgage would usually be based on the discounted purchase price.
Some lenders may also treat the £45,000 discount as the deposit, although this depends on lender criteria and the wider application.
This is only an example. Your actual discount, purchase price and mortgage options will depend on your property, landlord, location and circumstances.
Credit issues do not always rule out a Right-to-Buy mortgage, but they can limit your lender options.
Missed payments, defaults, CCJs, debt management plans or recent arrears may make the application more difficult. The discount can help the overall case, but it does not remove the need for credit and affordability checks. If this applies to you, our adverse credit mortgage advice may help.
We can help you understand whether it may be worth applying now, or whether waiting could improve your options.
Right-to-Buy buyers can have different income setups. The right lender may depend on how your income is made up and how clearly it can be evidenced. This includes self-employed income, among others:
Speak to one of our expert advisers today. No obligation, no jargon — just honest, expert advice.
Your home may be repossessed if you do not keep up repayments on your mortgage.