Working Hours: Mon - Fri: 9:00AM - 6:00PM
Call Us: 0330 304 3040
Home Mortgage Calculators About Blog
   Back | How it Works
How it Works
Securing an excellent mortgage offer with Revolution Finance Brokers couldn't be easier
1Get in Touch
Complete a quick form to give us an overview of your mortgage or financing requirements, and we'll provide recommendations about the best opportunities for you.
2Submit Your Application
Once you've chosen your preferred mortgage deal, we'll steer you through the paperwork with comprehensive application management from start to finish.
3Mortgage Completion
Revolution Finance Brokers will finalise the details and enable you to move forward without delay!
   Back | About
About
Blog
Contact Us
FAQs
Documents
Areas
Credit Report
   Back | Insurance
Insurance
Business Protection Insurance
Life Insurance
Building Insurance
Home Insurance
Mortgage Repayment Protection
Family Income Benefit
Critical Illness Cover
Income Protection
Life Assurance
   Back | Calculators
Calculators
Stamp Duty
Commercial Stamp Duty
How Much Can I Borrow?
Buy To Let
Bridging Loan
Residential & Commercial Bridging
Mortgage Repayment
Development Finance
Commercial Mortgage
   Back | Choose your mortgage type
Choose your mortgage type
Bad Credit Mortgages
Bridging Finance
Commercial Mortgages
Buy to let
Self Employed Mortgages
Mortgages for Professionals
Lifetime Mortgages
Expat Mortgages
Interest Only Mortgages
Mortgage Affordability
Mortgage Application
Income Types
Residential Mortgages
Development Finance
Property Types
Remortgages
First Time Buyers
Mortgage Rejection
Offset Mortgages
Second Charge Mortgages

Applying for a Right to Buy Council House Mortgage

Owning a social housing property can seem like a distant aspiration - but Right to Buy could transform your living situation and get you firmly onto the property ladder. Please read our full guide to understand why your choice of lender will make all the difference.

Want To Buy a council house? Consider a right-to-buy Mortgage

 

Right to Buy mortgage schemes are designed to help tenants of council properties buy their home affordably.

There are some great discounts available that make the property market accessible. However, independent advice is essential to ensure you're paying the most competitive rates, and have a professional team to negotiate your mortgage terms on your behalf.

How Does the Right to Buy Mortgage Scheme Work?

This government scheme offers a discount on council properties in England to help tenants buy their property - even if they do not have a deposit.

Lenders will still need to go through affordability and eligibility checks, and the value of the discount depends on:

  • What sort of property you live in.
  • Where it is based.
  • What its market value is.

The mortgage advisors team can help determine if you are eligible for Right to Buy, and which mortgage lenders will offer the most appropriate lending product.

What are the Eligibility Criteria for a Right to Buy Mortgage?

If you live in a council property, you are eligible if the following criteria apply:

  • This home is your only residence or your primary one.
  • The property is self-contained.
  • You are a tenant with a tenancy agreement with the landlord.
  • You have been living in a public sector rented property for three years or more as a public sector tenant
  • You live in England (there are different schemes in Wales and Northern Ireland, and no comparable option in Scotland).

Lenders will need to know what you earn and check your credit history before they can offer to lend. If you meet all the criteria, you can usually borrow up to 4.5 or fives times your annual income.

Some lenders will offer up to six times your salary if you meet all the other criteria.

The following circumstances can be trickier, and require a specialist Right to Buy mortgage lender:

  • Bad credit issues - depending on when they occurred and how serious they were.
  • Later-life borrowing - many high street banks limit applicant ages to 75 or 85 at the end of the term.
  • Self-employment requires you to demonstrate your average income, although niche lenders can be more flexible about how many years of accounts they need.
  • High street banks often reject non-standard properties, such as timber frames or high-rise apartments as they are considered higher risk.

If any of these circumstances apply, it is still possible to find competitive Right to Buy lending - but a specialist lender negotiated through an experienced broker is very likely to be the most affordable option.

What is the Discount on a Right to Buy Mortgage?

The discount offered will depend on how long you have lived in the property:

  • After three to five years, you get a 35% discount on market value.
  • After five years, you receive a 1% further discount for each additional year.

This table shows the discount applied on a property valued at £100,000:

Length of Tenancy

Discount Available

Value of Discount

Three to five years

35%

£35,000

Six years

36%

£36,000

Seven years

37%

£37,000

Eight years

38%

£38,000

Nine years

39%

£39,000

Ten years

40%

£40,000

If you are buying a flat, the discount is 5% after 3-5 years, increasing by 2% for every additional year. The below shows the discount on a local council tenants flat valued at £100,000:

Length of Tenancy

Discount Available

Value of Discount

Three to five years

50%

£50,000

Six years

52%

£52,000

Seven years

54%

£54,000

Eight years

56%

£56,000

Nine years

58%

£58,000

Ten years

60%

£60,000

Limits exist, capping the top Right to Buy discount at £80,900 (or £108,000 in London).

If your landlord has spent money improving the property, paying for maintenance costs or upgrading it, your discount may be reduced. If they have spent more on the property to improve it than the valuation figure, you usually won't receive a Right to Buy discount.

You can check on the government's Right to Buy calculator to get an idea about whether you are eligible - however, we recommend consulting an experienced broker for a more detailed analysis.

How Do I Apply for a Right to Buy Mortgage Discount?

The first step is to complete an application form on the government website called an RTB1 form.

If you'd like assistance completing this form, or working through the application process, give us a call on 0330 304 3040, and we'll get you started.

You don't need a Right to Buy broker, but it's highly advisable, since right to buy mortgage lenders offer very different rates, terms and conditions, so a broker acts on your behalf to find the most competitive lending terms.

Revolution Brokers works with applicants from all backgrounds and can help secure Right to Buy lending whether you are self-employed, have a complex income, have experienced adverse credit issues in the past, or need help with the affordability assessment and can help you find out all the information about the housing association tenants and the types of mortgage repayments.

How a Right to Buy Mortgage Broker can Streamline the Process

If you haven't had right to buy mortgages before, the Right to Buy scheme can seem appealing, but also complicated.

Here's how we ensure you have a positive experience:

  • Calculating Costs - firstly, we'll help you work through your finances, decide what you can afford, and calculate what you can borrow. That includes ongoing upkeep costs, mortgage payment protection insurance, other insurances and any service charges payable on the property.
  • Applying to a Lender - we can work through your RTB1 form with you to ensure it is submitted correctly, and follow up the application if you have not had a response from the public sector landlord within four weeks.
  • Lodging Appeals - the landlord will send an offer notice with a valuation, structural information, and detailing the offered maximum discount. If you disagree with any part of the offer, we work with you to appeal this and request a new proposal.
  • Negotiating a Mortgage - once we know exactly what you need to borrow, we scour the UK market to find the most attractive lending options. That includes dealing with lenders, particularly when there are any adverse credit issues or non-standard circumstances to work around.
  • Completing the Purchase - when we know we've found the best possible lending, we will help you with the application and paperwork, until the deeds have been signed, and you're happily settled in your new homeownership role!

Further Reading

PROCESS

Explore Our Presence

Securing an excellent mortgage offer with Revolution Finance
Brokers couldn't be easier:

cityam
dailyexpress
dailymail
standard
FT Advisor
LBC
The Guardian
Independent
Metro
Mortgage Introducer
Sky News
The Sunday Times
Yahoo
This is Money
Mirror
LBC
The Sunday Times
PROCESS

Revolution Mortgage Brokers:
100% Independent & Whole-of-Market

As specialist mortgage brokers for a huge variety of applicants, the whole-of-market consultants at Revolution provide access to an exceptional range of lenders, products and mortgage deals. That means you get the advantage of professional negotiation and broker-exclusives through an established lending network to ensure we always find you the most competitive mortgage available.

REFERRALS

Refer, Relax, and get £50

Ask the Expert
Mortgage Brokers

Revolution Brokers
What can we help you with today?
Do you have a particular timescale in mind?
Next
Which situation from the below list best matches your requirements? *
Could you tell us the market value of the property?*
Please let us know a rough idea of your yearly income (before tax) for all applicants? *
Back
Next
Primary applicant name *
Contact email address *
Best contact number *
Back
Next