Right to buy mortgages

Owning a home can feel out of reach for a lot of council tenants, especially if you’ve been renting for a long time. With saving enough for a deposit a huge financial hurdle, many council tenants simply accept the fact that buying a property isn’t an option. But, what if we told you there could be another way? Thanks to the Right to Buy scheme, many eligible council tenants have the chance to purchase their home at a significant discount, often replacing the need for a cash deposit. To take advantage, you’ll need a Right to Buy mortgage.

At Everest Mortgages, we help council tenants say goodbye to a future of renting and hello to property ownership, guiding you through the Right to Buy process and securing the right Right to Buy mortgage.

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What is the Right to Buy Scheme?

Most people have heard of first time buyer mortgages, but Right to Buy mortgages often fly under the radar. However, they’re key if you’re hoping to buy your council home.

The Right to Buy scheme enables council tenants – and most are eligible – to purchase their council home at a discounted price. If you qualify, your discount can be used in place of a deposit, making the journey to owning a home far more accessible and affordable.

Who can take advantage of the Right to Buy scheme?

To be eligible for the Right to Buy scheme, you must use the property as your main and only home, the property must be self-contained and you need to have rented from a public sector landlord – for example, the council or a housing association – for at least 3 years. You also need to be a secure tenant, which means you already have permission to live in the property for the rest of your life, as long as you stick to the conditions set out in your tenancy agreement.

Though you can apply for the Right to Buy on your own, you can also apply with someone who shares your tenancy, as part of a joint application. You can also apply with up to 3 family members who have lived with you for at least 12 months.

How do Right to Buy discounts work?

If you qualify for the Right to Buy scheme, you’ll receive a discount on the market value of the property. This makes property ownership a lot more accessible to those who wouldn’t otherwise be in a financial position to buy. The discount you get is based on whether the property is a house or a flat, how long you’ve been a council tenant for and the value of your home.

If you live in a house and have been a tenant for between 3 and 5 years, you’ll get a 35% discount. After 5 years, the discount increases by 1% for every additional year. The discount is capped at 70% of the property value or the regional maximum, whichever is lower.
If you live in a flat and have been a tenant for between 3 and 5 years, you’ll get a discount of 50%. After 5 years, the discount increases by 2% for every additional year. Much like houses, the discount is capped at 70% or the regional maximum.

If you are buying jointly, the discount is calculated based on the applicant with the longest qualifying tenancy history.

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How do Right to Buy mortgages work?

With a Right to Buy mortgage, you can purchase your council home with the help of a discount. That discount can act as your deposit, meaning you don’t need to save a large sum in order to get on the property ladder.

Once your Right to Buy application is approved, you can apply for a Right to Buy mortgage. This process works in the same way as any other first time buyer mortgage, with lenders assessing your income, credit history and affordability before approving you.

Why Right to Buy mortgages are popular with first time buyers

Though traditional first time buyer mortgages do exist, approval often relies on you having a sizable deposit, which isn’t possible for everyone. If you’re a council tenant wanting to get on the property ladder for the first time, Right to Buy mortgages are a huge help. As the Right to Buy discount can usually act as your deposit, Right to Buy mortgages take away the huge financial burden many first time buyers face.

With a Right to Buy mortgage, you can access many mainstream mortgage lenders and stay in your current home, whilst also becoming a homeowner. Plus, you can step onto the property ladder with confidence and less financial pressure, without the stress of finding a new home and moving somewhere new.

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The importance of using a Right to Buy mortgage broker

Applying for a Right to Buy mortgage can involve more paperwork than traditional fixed rate mortgages and variable rate mortgages, which is why it’s a good idea to work with an experienced mortgage broker. With unique lender criteria and specific scheme rules, working with an expert who understands the Right to Buy mortgage process keeps things simple and stress-free.

At Everest Mortgages, we help you to access lenders who support the scheme, use your discount effectively as a deposit and navigate the paperwork, deadlines and affordability checks. We’ll be by your side from the moment you apply, ensuring you’re informed, supported and confident throughout.

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