If you are a council or housing association tenant looking to buy your home, finding the right mortgage provider is a crucial step. The Right to Buy scheme helps eligible tenants purchase their homes at a discount, but securing a mortgage that suits your needs can be challenging. This guide will help you find the best Right to Buy mortgage providers in the UK.
1. Understand the Right to Buy Mortgages
A Right to Buy mortgage is a type of home loan designed specifically for tenants using the government’s Right to Buy scheme. Lenders consider factors such as your income, credit score, employment status, and property value before approving your mortgage.
Some key things to know:
- Your discount counts as a deposit – Many lenders accept the Right to Buy discount as a deposit, meaning you might not need to put down extra savings.
- Not all lenders offer Right to Buy mortgages – Some banks and building societies don’t provide these loans, so it’s important to find a specialist.
- Affordability checks apply – Just like any mortgage, lenders will assess your ability to repay.
2. Compare Right to Buy Mortgage Providers
High-Street Banks vs. Specialist Lenders
- High-street banks (like Barclays, HSBC, or NatWest) may offer Right to Buy mortgages but have strict lending criteria.
- Specialist lenders focus on Right to Buy customers and may be more flexible with credit history and employment types.
- Building societies often have competitive rates and a more personal approach.
How to Compare Lenders
When looking for the best Right to Buy mortgage provider, compare the following:
Interest rates – Look for a lender with competitive fixed or variable rates.
Fees – Some lenders charge higher arrangement or valuation fees.
Lending criteria – Some providers have stricter income or credit score requirements.
Customer service – Read reviews to see how easy they are to deal with.
3. Check for Specialist Right to Buy Mortgage Brokers
A Right to Buy mortgage broker can help you find the best deal. They have access to exclusive mortgage rates and can advise on the best lenders based on your circumstances.
Benefits of Using a Broker:
They handle paperwork, making the process smoother.
They know which lenders are most likely to approve your application.
They can negotiate better rates.
4. Check Your Credit Score
Your credit score plays a big role in getting approved for a mortgage. Even though some lenders accept poor credit, a higher score means better rates.
- Check your credit report for free with Experian, Equifax, or ClearScore.
- Improve your credit by paying off debts and making payments on time.
- Avoid taking out new loans or credit cards before applying.
5. Get a Mortgage Agreement in Principle
A Mortgage Agreement in Principle (AIP) gives you an estimate of how much you can borrow. It’s a useful step before making a full application. Most lenders offer a free AIP, and it doesn’t affect your credit score.
6. Apply for Your Right to Buy Mortgage
Once you’ve found the best lender, it’s time to apply. The process involves:
- Getting your Right to Buy application approved by your local council.
- Submitting your mortgage application with proof of income and identification.
- Lender’s property valuation to ensure it meets lending criteria.
- Receiving a mortgage offer and completing the purchase.
Finding the best Right to Buy mortgage provider takes research, but comparing rates, using a mortgage broker, and checking your credit score will help you secure the best deal. Start by getting an Agreement in Principle and choose a lender that suits your financial situation.
If you’re ready to take the next step, speak to a mortgage adviser or use an online comparison tool to find the best Right to Buy mortgage today.
FAQs
Do all lenders offer Right to Buy mortgages?
No, not all banks and mortgage lenders offer Right to Buy mortgages. While some high-street banks do, others have stricter lending criteria. Many specialist lenders and building societies cater specifically to Right to Buy buyers.
Can I get a Right to Buy mortgage with bad credit?
Yes, some lenders offer Right to Buy mortgages for people with poor credit, but the interest rates may be higher. A mortgage broker can help find lenders who are more flexible with credit history.
Can I get a Right to Buy mortgage with bad credit?
Yes, some lenders offer Right to Buy mortgages for people with poor credit, but the interest rates may be higher. A mortgage broker can help find lenders who are more flexible with credit history.
How much deposit do I need for a Right to Buy mortgage?
Most lenders accept the Right to Buy discount as a deposit, meaning you may not need additional savings. However, if the lender requires a deposit, it is usually around 5%–10% of the discounted purchase price.
How do I find the best Right to Buy mortgage provider?
To find the best provider, compare:
- Interest rates – Fixed or variable rates available.
- Lending criteria – Some lenders are stricter on income and credit score.
- Customer reviews – Check ratings and feedback.
- Mortgage broker recommendations – Brokers often have access to exclusive deals.
Should I use a mortgage broker for a Right to Buy mortgage?
Using a mortgage broker can be helpful, as they:
- Have access to deals not available to the public.
- Know which lenders are more likely to approve Right to Buy mortgages.
- Can handle the paperwork and speed up the process.
What documents do I need to apply for a Right to Buy mortgage?
Most lenders will ask for:
- Proof of ID (passport or driving licence)
- Proof of address.
- Right to Buy offer letter from your council
- Proof of income (payslips, tax returns if self-employed)
- Bank statements (usually 3–6 months)
How long does a Right to Buy mortgage application take?
The process typically takes 6–12 weeks, depending on how quickly your council processes the Right to Buy application and how efficient your mortgage lender is.
Can I sell my home after buying it through Right to Buy?
Yes, but if you sell within five years, you may have to repay some or all of the Right to Buy discount.
What happens if I am self-employed?
If you are self-employed, lenders usually ask for at least two years of accounts to prove income. Some specialist lenders may accept just one year’s accounts.
Can I buy my home with someone else?
Yes, you can buy your home with family members or others who have lived with you for at least 12 months, even if they are not listed on the tenancy.
Can I get a Right to Buy mortgage if I am on benefits?
Yes, some lenders consider benefits as part of your income. A mortgage broker can help you find a lender that accepts your financial situation.
What happens if my Right to Buy application is rejected?
If your Right to Buy application is denied, the council should provide a reason. You may be able to appeal or reapply if your circumstances change.
Can I get help with Right to Buy legal fees?
Some lenders offer cashback deals or cover legal fees as part of their mortgage package. You can also check if your local council provides support.
Is it worth buying my home through Right to Buy?
Buying through Right to Buy can be a great way to own a home at a discounted price. However, consider:
- The resale restrictions if selling within five years.
- If you can afford mortgage payments and maintenance costs.
- If you plan to live in the property long-term.
Continue Reading
First-time buyer mortgages London
What should I declare when selling my home?
Right to Buy mortgage with No deposit
Mortgage brokers first-time buyers London
Self-employed mortgages London
How to find the best Right to Buy mortgage deals
High-rise flat mortgages London
Right to buy: can I buy my council house?
Can you get a mortgage on a flat without an EWS1 in the UK?
Single brick construction mortgage
How much can I borrow for a mortgage?
Mortgage with a gifted deposit
Joint mortgage with bad credit
First-time buyer mortgage with bad credit
Can a mortgage broker in London help with bad credit mortgages?
What does “best mortgage broker” mean?
How do you buy someone out of a mortgage?
Can you add someone to a mortgage?
Can I get a mortgage as a contractor?
Do I need buy-to-let landlord insurance?
Do you need a mortgage for Right to Buy?
Bad credit mortgage brokers London