Monday Financial Group

Category: Right-To-Buy

  • Right to Buy discount: how much can you get in 2026?

    Right to Buy discount: how much can you get in 2026?

    How much discount can you get with Right to Buy? In England, your Right to Buy discount depends on your home, qualifying tenancy history and location. Although the percentage can reach 70%, current cash caps for new applications range from £16,000 to £38,000.

    Qualifying for 40% or 60% doesn’t necessarily mean getting that percentage off your home. The cash cap may produce a smaller reduction.

    This guide covers the Right to Buy discount calculation. If you’re still checking the basics, our guide to how Right to Buy works explains the scheme.

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    How much Right to Buy discount can you get?

    Before any further reductions, your discount is the lower of:

    • The percentage you qualify for, up to 70% of your home’s market value.
    • The maximum cash discount for your region, including any local exception.

    Houses and flats build up their percentage discounts differently. Your landlord confirms your qualifying tenancy history, valuation and final discount.

    The government’s Right to Buy reform announcement sets out future changes to eligibility and percentage discounts. The calculations below reflect the rules currently shown in GOV.UK guidance, checked on 2 October 2026.

    How is the Right to Buy discount calculated?

    The basic calculation is:

    Market value − confirmed discount = purchase price

    ItemExample
    Market value£180,000
    Confirmed discount£26,000
    Purchase price£154,000

    The discount reduces what you pay. It isn’t money paid into your bank account.

    How much discount do you get on a house?

    For a house, three to five years of qualifying public-sector tenancy gives a 35% discount. After five years, add one percentage point for each extra qualifying year, up to 70%.

    Ten years gives 40%: the starting 35%, plus five percentage points.

    House example: North WestAmount
    Market value£150,000
    Qualifying tenancy10 years
    Percentage entitlement40%
    Value of percentage discount£60,000
    Regional cash cap£26,000
    Discount after applying the cap£26,000
    Purchase price£124,000

    The £26,000 cap limits the Right to Buy discount, despite the 40% entitlement.

    How much discount do you get on a flat?

    For a flat, three to five qualifying years gives 50%. After five years, add two percentage points for each additional qualifying year, up to 70%.

    Ten years therefore gives 60%, before the cash cap and any further adjustments.

    Flat example: Yorkshire and the HumberAmount
    Market value£120,000
    Qualifying tenancy10 years
    Percentage entitlement60%
    Value of percentage discount£72,000
    Regional cash cap£24,000
    Discount after applying the cap£24,000
    Purchase price£96,000

    The government’s Right to Buy guide explains that qualifying public-sector tenancies needn’t be continuous. Relevant periods with different landlords can count. For a joint purchase, the applicant with the longest qualifying history can provide the higher rate, subject to the limits.

    What is the maximum Right to Buy discount in your area?

    These are the current cash caps for new applications, according to GOV.UK discount guidance.

    RegionMaximum cash discount
    North East£22,000
    North West£26,000
    Yorkshire and the Humber£24,000
    East Midlands£24,000
    West Midlands£26,000
    Eastern£34,000
    South East£38,000
    South West£30,000
    London£16,000

    There are important exceptions:

    • Eastern: Watford’s cap is £16,000.
    • South East: £16,000 applies in Reading Borough, West Berkshire, Hart, Oxford, Vale of the White Horse, Tonbridge and Malling, Epsom and Ewell, and Reigate and Banstead.
    • London: Barking and Dagenham and Havering have a £38,000 cap.

    Your landlord confirms which limit applies to your home.

    Why might your Right to Buy discount be lower?

    The cash cap is only one limit. Other factors include:

    • Property value: the percentage calculation starts with the market value, so a lower valuation can mean a lower cash discount.
    • Qualifying tenancy: fewer qualifying years can mean a lower percentage entitlement.
    • Previous discounts: a previous discounted public-sector purchase can reduce your entitlement.
    • Cost floor: qualifying landlord spending on building, acquiring, repairing or maintaining your home can reduce or remove the discount.

    Our guide to the Right to Buy cost floor rule explains that adjustment in more detail.

    Does a longer tenancy always mean a bigger discount?

    No. Extra qualifying years can increase the percentage, but may leave the cash discount unchanged once you’ve reached the regional cap.

    In the house example above, increasing the entitlement from 40% to 45% would raise the percentage-based figure from £60,000 to £67,500. Both exceed £26,000, so the cap would still limit the discount to £26,000.

    What if you applied before 21 November 2024?

    Earlier applications: eligible applications received by the landlord before 21 November 2024 can retain the previous cash maximums of £102,400 outside London or £136,400 in London. Percentage limits and other adjustments still apply. These aren’t the standard caps for new applications in 2026.

    How does your discount affect the mortgage?

    A lower purchase price can reduce the amount you need to borrow. Some lenders may also let you use your Right to Buy discount as a deposit.

    That doesn’t automatically mean you can buy without a separate cash deposit. The lender still checks your income, affordability, credit history and the property. We would check the confirmed discount and purchase price before assessing suitable mortgage options.

    Estimate your Right to Buy purchase price

    Use our Right-to-Buy mortgage calculator to explore your discounted purchase price, approximate mortgage amount, potential deposit position and estimated monthly repayments.

    Update your estimates when your landlord confirms the figures. Calculator results don’t confirm your statutory discount or mortgage approval.

    When to get mortgage advice

    Advice can help when you have, or expect, an offer and want to check whether the purchase price is affordable. It’s also useful if you’re unsure about the deposit, self-employed, have adverse credit or are buying a property that may be harder to mortgage.

    Our Right-to-Buy mortgage advice can help you assess the borrowing side. Your landlord determines the statutory discount.

    [FAQ]

    Frequently asked questions

    What is the maximum Right to Buy discount in 2026?

    For new applications, cash caps range from £16,000 to £38,000. Your percentage entitlement and other adjustments may produce a lower discount.

    Can you get a 70% Right to Buy discount?

    You can qualify for a 70% percentage entitlement, but the cash cap may mean receiving much less than 70% off the property.

    How many years do you need for the maximum discount?

    The percentage reaches 70% after 40 qualifying years for a house or 15 for a flat. You may reach the cash cap much earlier.

    Is the discount different for houses and flats?

    Yes. Houses start at 35% and flats at 50%. After five years, houses gain one percentage point annually and flats gain two.

    Can the cost floor reduce your discount?

    Yes. Qualifying landlord expenditure can reduce or remove it, increasing the purchase price compared with your initial estimate.

    Can the discount count as a mortgage deposit?

    Some lenders accept it, but this depends on their criteria and your application. You’ll also need to allow for purchase costs.

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  • Can you release equity from a Right-to-Buy property?

    Can you release equity from a Right-to-Buy property?

    If you bought your council home through Right to Buy, you may now have a significant amount of equity in the property, particularly if you received a large discount or your home has increased in value since you bought it. It’s natural to wonder whether you can use some of that to release equity, perhaps for home improvements, to repay other borrowing or for another major expense.

    The answer is potentially yes, but releasing equity from a Right-to-Buy property isn’t always as straightforward as looking at the difference between your mortgage balance and the property’s current value. This is particularly important during the first five years after purchase, while the Right-to-Buy discount repayment rules still apply.

    In this guide, we’ll explain how equity works after a Right-to-Buy purchase, the difference between simply remortgaging and borrowing more, how the five-year discount period can affect your options, and what lenders are likely to consider if you want to raise additional money. We’ll also explain why the equity shown on paper isn’t necessarily the amount you’ll be able to access.

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    Can you release equity from a Right-to-Buy property?

    Potentially, yes. In this context, releasing equity means increasing borrowing secured against your home and taking some of the difference as cash.

    You might do this through a further advance from your existing lender or by moving to a new lender and increasing the mortgage balance. By contrast, a remortgage can simply mean moving lender without borrowing extra.

    When we look at a Right-to-Buy remortgage involving additional borrowing, we don’t base the assessment on the headline equity figure alone. We also look at the current mortgage balance, property value, affordability, lender criteria, the reason for borrowing and whether any restrictions or charges could affect the proposed mortgage.

    Why you can have equity from the day you buy

    Suppose your council home is worth £200,000, but you buy it for £150,000 after a £50,000 Right-to-Buy discount.

    Amount
    Market value£200,000
    Purchase price£150,000
    Mortgage£150,000
    Apparent equity£50,000

    The Right-to-Buy discount has created a £50,000 gap between the mortgage and market value. However, that doesn’t mean you could automatically remortgage to £180,000 and withdraw £30,000. During the first five years, the discount repayment rules still matter.

    What happens to your Right-to-Buy discount during the first five years?

    If you sell a Right-to-Buy home within five years of purchase, some or all of the discount will usually have to be repaid. Under the current rules:

    When you sellDiscount repayment percentage
    First year100%
    Second year80%
    Third year60%
    Fourth year40%
    Fifth year20%
    After five yearsNo normal Right-to-Buy discount repayment

    The amount repayable can also reflect the property’s value when it is sold. GOV.UK’s April 2026 Right to Buy guidance confirms both the five-year repayment period and the reducing repayment percentages above.

    Importantly, this is a sale rule. It does not show how much equity becomes available to borrow each year.

    Does 20% of the equity become available each year?

    No. This is one of the main points we’d want to clarify before assessing a case.

    The 20% annual reduction relates to the potential discount repayment liability. It is not an automatic borrowing allowance.

    Whether you can borrow more depends on the lender, affordability, current property value, existing mortgage balance and the purpose of the borrowing. During the discount repayment period, the former landlord can also retain an interest connected with repayment of the discount, so the priority of mortgage charges can matter.

    Depending on the property and proposed borrowing, your lender or conveyancer may need information or agreement from the former landlord. Some social landlords specifically use a Deed of Postponement where a lender needs new or additional borrowing to rank ahead of the landlord’s claim. We therefore wouldn’t recommend relying on a simple “market value minus mortgage” calculation during the first five years.

    Remortgaging vs borrowing more: what’s the difference?

    OptionWhat it means
    Product transferStaying with your existing lender but changing deal
    RemortgageMoving your mortgage to another lender
    Further advanceBorrowing extra from your existing lender
    Remortgage with additional borrowingMoving lender and increasing the mortgage balance
    Releasing equityUsing extra secured borrowing to access some property value

    What might lenders look at if you want to borrow more?

    Having equity is only one part of the assessment. We’d normally expect a lender to consider:

    • current property value and mortgage balance;
    • the new loan-to-value;
    • income, expenditure and affordability;
    • credit history and existing commitments;
    • the purpose of the additional borrowing;
    • property type and suitability;
    • time since the Right-to-Buy purchase; and
    • any restrictions or charges affecting the property.

    What happens after five years?

    Once the standard five-year discount repayment period has ended, that particular complication falls away. Normal lender criteria still apply, including affordability, credit history, property suitability and loan-to-value.

    The five-year rule is separate from the ten-year Right-to-Buy right-of-first-refusal rule. If you sell within ten years, you generally need to offer the property back to your former landlord or another social landlord first. Our guide to how Right to Buy works explains the wider scheme rules.

    When should you speak to a mortgage broker?

    Advice can be useful if you want to change lender, borrow more for home improvements, consolidate borrowing or understand whether waiting until after the five-year period could affect your options.

    If you bought through Right to Buy and want to remortgage your home, we can review your equity, affordability and lender criteria and explain which mortgage routes may be realistic.

    Where the answer depends on the legal terms of the original sale or the priority of charges, we may also recommend confirming the position with your former landlord or conveyancer. That way, we can assess the mortgage options without making assumptions about equity that may not actually be available to access.

    [FAQ]

    Frequently asked questions

    Can I remortgage a Right-to-Buy property?

    Potentially. Moving lender and borrowing extra are separate questions, so being able to remortgage does not necessarily mean you can also release additional equity.

    Can I borrow more on my Right-to-Buy mortgage?

    Possibly, through a further advance or a remortgage with additional borrowing. The amount available depends on lender criteria, affordability, LTV and any restrictions affecting the property.

    Can I release equity within five years of Right to Buy?

    It may be possible, but the discount repayment period can make additional borrowing more complex. We’d recommend checking both the mortgage and legal position rather than assuming the equity created by the original discount is freely available.

    Does 20% of my Right-to-Buy equity become available each year?

    No. The 20% annual reduction relates to the discount repayment liability, not an automatic allowance for additional borrowing.

    Can I remortgage after five years?

    Yes, subject to normal lender criteria. After five years, the standard Right-to-Buy discount repayment requirement no longer applies.

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  • Self-employed Right-to-Buy mortgage: what lenders need

    Self-employed Right-to-Buy mortgage: what lenders need

    Being self-employed doesn’t stop you from getting a self-employed Right-to-Buy mortgage. The main question is whether a lender can verify your self-employed income, confirm the mortgage is affordable and accept the property you’re buying.

    Your council or landlord decides whether you’re eligible for Right to Buy and confirms your Right-to-Buy discount. The mortgage is assessed separately by the lender.

    In our experience, the important part isn’t simply whether you’re “self-employed”. It’s how you earn your income, how long you’ve been trading and whether the figures give a lender a clear picture of what you can afford.

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    Can you get a Right-to-Buy mortgage if you’re self-employed?

    Yes, potentially. A self-employed Right-to-Buy mortgage is still a normal residential mortgage, but the lender may need more evidence to understand your income.

    This can apply if you’re a:

    • Sole trader
    • Limited company director
    • Contractor
    • Freelancer
    • Partner in a business

    Being self-employed isn’t automatically a problem. What matters is whether your income can be evidenced, the mortgage is affordable and the rest of the application fits the lender’s criteria.

    When we assess a case, we’d normally want to understand your business structure and income before looking at lenders. That’s because the same earnings can be treated differently depending on whether you’re a sole trader, company director or contractor, which is why the lender choice can matter when getting a mortgage when self-employed.

    Right to Buy eligibility is separate from mortgage approval

    Right to Buy is a way of purchasing an eligible council home at a discount. It isn’t a separate mortgage product.

    Your council or landlord deals with the Right to Buy side of the purchase, including confirming your eligibility, valuation, discount and purchase price.

    The mortgage lender considers:

    • Your income
    • Whether that income is sustainable
    • Your credit history
    • Existing financial commitments
    • How much you need to borrow
    • Whether the property is acceptable security

    So, being eligible for Right to Buy doesn’t guarantee mortgage approval.

    We’d generally recommend looking at the mortgage side before assuming that the council’s discounted purchase price will automatically be affordable. The discount can help considerably, but your income and circumstances still need to support the mortgage required.

    How your Right-to-Buy discount may affect the mortgage

    Your Right-to-Buy discount reduces the amount you pay for your home.

    For example, if the property is valued at £170,000 and your discount is £26,000, the discounted purchase price would be £144,000.

    Current GOV.UK Right to Buy guidance explains that some lenders treat the discount as the deposit, while others don’t.

    This can be particularly useful if you have sufficient income to support the mortgage but haven’t built up a large cash deposit. However, we wouldn’t assume at the outset that you’ll definitely be able to buy with no cash deposit.

    If you’re planning to use your Right-to-Buy discount as a deposit, we’d want to establish early whether the lenders suitable for the rest of your application will also accept the discount in this way.

    What self-employed income evidence may lenders need?

    The exact paperwork depends on how you’re self-employed and which lender you’re applying to.

    You may be asked for:

    • SA302 tax calculations
    • Tax year overviews
    • Finalised business accounts
    • Personal bank statements
    • Business bank statements, where required
    • Accountant details or an accountant’s certificate
    • Contracts or evidence of ongoing work
    • Your Right to Buy offer or Section 125 Notice once issued

    We’d normally recommend getting your latest accounts, tax calculations and tax year overviews together early rather than waiting until a lender asks for them.

    When we’re reviewing an application, we’d want the income evidence to tell a consistent story. If your accounts, tax records and bank activity don’t appear to line up, that doesn’t necessarily stop you getting a mortgage, but we’d want to understand why before choosing a lender.

    The documents requested can also differ between lenders, so having the right paperwork isn’t just about proving that you earn money. It’s about supporting the particular income figure the lender will use for affordability. Our guide to documents for your self-employed application explains the evidence you may need for your business structure.

    Sole traders buying through Right to Buy

    Sole traders are generally assessed using profit rather than turnover.

    For example, if your business has £70,000 of sales but reports £38,000 net profit, it’s the profit figure that’s likely to be more relevant to the mortgage assessment.

    We’d usually prefer to see stable or increasing profits rather than a sharp fall in the latest year. A reduction doesn’t automatically stop an application, but it’s something we’d want to understand before deciding which lenders are realistic.

    Lenders can also take different approaches to fluctuating earnings. One may use an average across previous years, while another may place greater weight on your latest figures, particularly where income has fallen.

    Limited company directors buying through Right to Buy

    If you’re a limited company director, a Right-to-Buy mortgage can be more complicated because the amount your company earns isn’t necessarily the same as the income you personally withdraw.

    Some lenders assess salary and dividends. Others may be able to consider your share of company profit or retained profit, depending on their criteria.

    This is one of the situations where lender selection can make a significant difference.

    If you deliberately take a relatively low salary and leave profit inside the company, we wouldn’t automatically assume your salary and dividends give the full picture of your financial position. How lenders assess salary, dividends and retained profit can therefore affect how much you’re able to borrow.

    Contractors and freelancers buying through Right to Buy

    Contractors and freelancers don’t always fit neatly into the same category.

    Depending on how you’re paid, a lender might assess your tax returns and accounts or, in some circumstances, look at your current contract and day rate.

    They may also consider:

    • How long you’ve been contracting
    • Your previous experience in the same industry
    • Gaps between contracts
    • How long remains on your current contract
    • Evidence that your work is likely to continue

    If you’re contracting, we’d therefore want to establish how a lender is likely to classify your income before deciding what evidence you’ll need.

    What if you only have one year’s accounts?

    Having only one year’s accounts doesn’t necessarily mean you can’t get a Right-to-Buy mortgage, but your lender options may be more limited.

    Some lenders can consider shorter trading histories, while others want a longer track record. The rest of the application can therefore become particularly important.

    If you only have one year of self-employed accounts, we’d want to understand factors such as:

    • Your previous experience in the same industry
    • How the business is performing now
    • Whether income appears sustainable
    • Your credit history
    • How much you need to borrow
    • Your overall financial position

    We’d recommend checking the available options before submitting an application rather than simply applying to your existing bank and hoping its criteria fit.

    What else can affect your Right-to-Buy mortgage options?

    Your self-employed income is only one part of the application.

    A lender may also consider:

    • Credit history
    • Loans, credit cards and other commitments
    • Dependants and household expenditure
    • Your age and proposed mortgage term
    • The size of your Right-to-Buy discount
    • Whether the discount can act as the deposit
    • Property type and construction
    • Service charges if you’re buying a flat or leasehold property

    The property itself can be important. GOV.UK notes that mortgage availability may be more limited for some high-rise flats, properties with non-traditional construction and properties on certain large or run-down estates.

    This is something we’d want to identify early. A strong income and a large discount won’t help if the lender isn’t prepared to accept the property as security.

    Example of a self-employed Right-to-Buy mortgage

    Consider this illustrative example:

    • Property value: £170,000
    • Right-to-Buy discount: £26,000
    • Discounted purchase price: £144,000
    • Cash deposit: £0
    • Mortgage required: £144,000
    • Self-employed net profit: £38,000

    A lender that accepts the discount as the deposit might consider a £144,000 mortgage.

    However, we wouldn’t assume from those figures alone that the mortgage will be approved. The lender would still assess the applicant’s income history, existing commitments, credit record and the property itself.

    Before applying, you can use our Right-to-Buy mortgage calculator to estimate how your discount could affect the purchase price and the amount you may need to borrow.

    When to speak to a mortgage broker

    In our experience, the more difficult self-employed Right to Buy applications usually aren’t difficult because of one single issue.

    It’s often the combination of your business structure, trading history, income figures, Right-to-Buy discount, borrowing requirement and property that determines which lenders are realistic.

    A broker can help work through those factors together, check how different lenders may assess your income and identify what evidence you’re likely to need before an application is submitted.

    This can be particularly useful if you:

    • Have only one year’s accounts
    • Take a low salary from your company
    • Retain profit in the business
    • Work as a contractor
    • Want to use your discount as the deposit
    • Are buying a property that may be harder to mortgage

    If you’re self-employed, getting Right-to-Buy mortgage advice before you apply can help establish whether your income, discount, borrowing requirement and property are likely to work together.

    [FAQ]

    Frequently asked questions

    Can I get a Right-to-Buy mortgage if I’m self-employed?

    Potentially, yes. Being self-employed doesn’t automatically prevent you from getting a Right-to-Buy mortgage. You’ll still need to meet the lender’s affordability, income evidence, credit and property requirements.

    What documents do I need for a self-employed Right-to-Buy mortgage?

    Depending on how you’re self-employed and the lender you use, you may need SA302s, tax year overviews, business accounts, bank statements or contracts. You’ll also normally need your Right to Buy paperwork once it has been issued.

    Can my Right-to-Buy discount be used as my deposit?

    Some lenders may accept the Right-to-Buy discount as the deposit, while others won’t. If you don’t intend to contribute a separate cash deposit, we’d recommend checking this before applying.

    Can I get a Right-to-Buy mortgage with one year’s accounts?

    It may be possible, but lender choice is generally more limited. Your previous experience, current business performance, credit history and overall application may become more important.

    Do lenders use turnover or profit for self-employed mortgages?

    For sole traders, lenders generally focus on profit rather than turnover. Limited company directors can be assessed differently, with salary, dividends or company profit potentially relevant depending on the lender.

    Can limited company directors get Right-to-Buy mortgages?

    Yes, potentially. We’d want to understand how you take income from the company before identifying suitable lenders, because different lenders can assess directors’ income in different ways.

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  • What is the Right to Buy cost floor rule?

    What is the Right to Buy cost floor rule?

    The Right to Buy cost floor rule is one reason your Right to Buy discount could be lower than expected. It can apply where your landlord has spent money buying, building, repairing, maintaining or improving your home.

    A lower discount means a higher purchase price. That can increase the amount you need to borrow through a Right-to-Buy mortgage and affect whether the discount can help as your deposit.

    The cost floor is one of several rules that can affect how Right to Buy works and the final price you are offered for your council home.

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    What is the Right to Buy cost floor rule?

    The cost floor limits how far your discount can reduce the price of your home.

    It looks at certain costs your landlord has incurred on the property over a set period. If those costs mean the home cannot be sold as cheaply as your normal discount would suggest, your discount can be reduced.

    It does not affect every purchase, and it does not always remove the discount. Your landlord confirms whether it applies and how it affects your offer.

    How long does the cost floor period last?

    Under current GOV.UK guidance, the cost floor period is generally 30 years.

    For applications successfully lodged before 21 November 2024, it is generally 10 years, or 15 years where the home was built or acquired by the landlord on or after 2 April 2012.

    A 15-year period also applies to Preserved Right to Buy, so the rules affecting your purchase can depend on which scheme and application date apply to you.

    Example of how the cost floor could affect your price

    Suppose your home is valued at £160,000:

    • Expected discount: £26,000
    • Expected purchase price: £134,000
    • Cost-floor minimum sale price: £148,000
    • Revised discount: £12,000
    • Revised purchase price: £148,000

    Here, the discount falls by £14,000, so the buyer would need to cover an extra £14,000 through their mortgage, cash or both.

    This is only an example. Your landlord calculates the actual figures.

    Where will you see the cost floor adjustment?

    If your landlord agrees that you have the Right to Buy, they will send you a Section 125 Notice setting out the proposed price, discount and terms of sale.

    The notice should state if your discount has been reduced because of the cost floor. If the figure is unclear, ask your landlord to explain it. You should also make sure you have told them about improvements you paid for yourself.

    How could the cost floor rule affect your mortgage?

    A smaller discount usually means a higher Right-to-Buy purchase price. That may mean:

    • You need to borrow more.
    • Your estimated monthly repayments rise.
    • The higher mortgage amount affects affordability.
    • The remaining discount is less useful as a deposit.
    • You decide the purchase no longer works for your budget.

    This can be particularly important if you were planning on using your Right to Buy discount as a deposit. Some lenders may accept the discount instead of a separate cash deposit, but a smaller discount can change those figures.

    You can adjust the property value and discount in our Right-to-Buy mortgage calculator to estimate how the revised purchase price could affect your mortgage amount and monthly repayments.

    What should you do if your discount is lower than expected?

    If the figures in your offer are different from what you expected:

    • Check the Section 125 Notice.
    • Ask your landlord to explain the cost-floor adjustment.
    • Check that improvements you paid for yourself have been recorded.
    • Consider independent legal advice if you disagree with or do not understand the figure.
    • Recheck your mortgage numbers before deciding whether to continue.

    A mortgage broker cannot decide whether the cost floor has been applied correctly. Their role becomes more relevant once your landlord has confirmed the revised price and discount.

    When to speak to a mortgage broker

    Once those figures are known, a broker can check whether the higher borrowing amount looks affordable, whether the remaining discount may still work as a deposit and which lenders may consider the case.

    If the cost floor has changed the amount you need to borrow, getting help with a Right-to-Buy mortgage can help you understand whether the revised purchase price still works with your income, deposit position and lender options.

    [FAQ]

    FAQs

    Why has my Right-to-Buy discount been reduced?

    The cost floor is one possible reason. It can limit the discount where your landlord has incurred certain costs on the property.

    Does the cost floor mean I cannot buy my council house?

    No. It may increase the purchase price, but it does not automatically stop you buying.

    Can I challenge the cost floor figure?

    If you do not understand or agree with the adjustment, ask your landlord for clarification and consider independent legal advice.

    Does the cost floor affect my mortgage?

    It can. A reduced discount increases the purchase price, which may mean you need a larger mortgage and could change your affordability.

    Can the discount still be used as a deposit?

    Potentially. Some lenders may accept the remaining discount as a deposit, but this depends on the lender and your wider application.

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  • Right to Buy vs Right to Acquire: What’s the difference?

    Right to Buy vs Right to Acquire: What’s the difference?

    Right to Buy and Right to Acquire can both help some social housing tenants buy their rented home at a discount, but they are different schemes. Right to Buy is mainly for eligible council tenants. Right to Acquire may apply to some housing association tenants, while others may have Preserved Right to Buy because their home transferred from a council.

    Your landlord must confirm which scheme, if any, applies.

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    Right to Buy vs Right to Acquire: the simple difference

    SchemeUsually applies toDiscountEligibility confirmed by
    Right to BuyEligible council tenantsRegional cash limits applyCouncil or landlord
    Preserved Right to BuySome tenants whose home transferred from a councilSimilar to Right to BuyHousing association or landlord
    Right to AcquireSome housing association tenantsUsually a smaller fixed discountHousing association or landlord

    Your landlord, tenancy history and property all matter. Eligibility is not automatic.

    What is Right to Buy?

    Right to Buy may allow you as an eligible council tenant in England to buy your council home below its full market value.

    The property normally needs to be your main or only home, be self-contained and be held under a secure tenancy. You will also usually need at least three years as a public-sector tenant. Your council must assess the application.

    What is Preserved Right to Buy?

    Most housing association tenants do not have standard Right to Buy. You may have Preserved Right to Buy if you were a secure council tenant and lived in the property when it transferred to a housing association.

    For example, if your council transferred your home but you remained there, your right may have been preserved. Your landlord can confirm whether this applies.

    What is Right to Acquire?

    Right to Acquire may allow an eligible housing association tenant in England to purchase their rented home at a discount.

    Both the tenant and property must qualify. The property generally needs to have been built, bought or transferred under the scheme’s rules, and the landlord must be registered with the Regulator of Social Housing.

    The April 2026 GOV.UK guide says discounts are between £9,000 and £16,000, depending on location.

    Which scheme might apply to you?

    As a broad guide:

    • Council tenant: Right to Buy may apply.
    • Housing association tenant who lived in the home when it transferred from a council: Preserved Right to Buy may apply.
    • Other housing association tenant: Right to Acquire may be worth checking.

    Your landlord must check the full circumstances, including the property and tenancy history.

    How do the discounts compare?

    Right to Buy discounts can depend on the property type and how long you have been a public-sector tenant, but a regional maximum cash limit also applies.

    For eligible applications received from 21 November 2024 onwards, current maximum Right to Buy cash discounts range from £16,000 to £38,000, depending on the region. Earlier applications may have been assessed under the previous, higher limits.

    Right to Acquire offers a fixed cash discount of £9,000 to £16,000, based on location.

    Discount rules can change, so check current official guidance and ask your landlord to confirm the amount.

    Can you get a mortgage with either scheme?

    Qualifying for a scheme does not guarantee mortgage approval. A lender will still assess whether the loan is affordable and whether the property is acceptable security.

    It may consider:

    • Income and spending
    • Loans and other debts
    • Your credit score and history
    • Age and mortgage term
    • Property type, value and discounted price
    • How its criteria treat the discount

    A mortgage with adverse credit may still be possible, but missed payments or defaults can reduce your options. Getting a self-employed mortgage may involve extra checks on how your income is calculated.

    Can the discount be used as a deposit?

    Some lenders may accept the Right to Buy discount as some or all of the equity normally provided by a cash deposit. Others may require your own money, depending on the mortgage and their limits.

    Treatment of a Right-to-Acquire mortgage can also vary. Neither scheme guarantees a no-deposit mortgage, and published lender criteria show that providers approach discounted purchases differently.

    If Right to Buy applies, our Right-to-Buy mortgage calculator can give you a rough estimate of how the discount affects the figures. It is mainly designed around Right-to-Buy calculations.

    Why property type can matter

    Some lenders may be cautious about certain high-rise flats, non-traditional construction, short leases or homes with limited resale demand.

    The lender and its valuer must still be satisfied with its construction, condition and marketability.

    When should you speak to a mortgage broker?

    It may help to speak to a broker after your landlord confirms the scheme, or once you receive a valuation and formal offer.

    A broker can assess affordability, credit history, property type and how lenders may treat the discount. If you want to see whether it’s possible to buy your council home, Monday Mortgages can help through its Right-to-Buy mortgage advice service.

    [FAQ]

    Right to Buy and Right to Acquire FAQs

    What is the difference between Right to Buy and Right to Acquire?

    Right to Buy is mainly for eligible council tenants. Right to Acquire may apply to some housing association tenants and qualifying homes.

    Can housing association tenants use Right to Buy?

    Usually not, but some may have Preserved Right to Buy if they lived in the home when it transferred from a council.

    What is Preserved Right to Buy?

    It is a right that may continue after an occupied council home transfers to a housing association.

    Is the Right to Acquire discount lower than Right to Buy?

    Right to Acquire currently offers £9,000 to £16,000. Maximum Right to Buy cash discounts currently range from £16,000 to £38,000, although an individual discount may be lower.

    Can I get a mortgage with Right to Acquire?

    Possibly, but approval depends on affordability, credit history, the property and the lender’s criteria.

    [/FAQ]

  • Can you buy your council house?

    Can you buy your council house?

    If you live in a council property, you might be wondering whether you can buy your council house and become the owner of the home you already live in.

    The short answer is: some council tenants may be able to buy their home through Right to Buy, but it depends on your tenancy, your property and your personal circumstances. Your council or landlord must confirm whether you’re eligible.

    If you do qualify, the next question is usually whether buying your council house is affordable and whether you can get a mortgage. These are separate checks. Being eligible for Right to Buy doesn’t automatically mean a lender will approve you for a mortgage.

    [TOC]

    Can you buy your council house?

    You may be able to buy your council house if you meet the Right to Buy rules. These rules look at things like your tenancy type, how long you’ve been a public sector tenant, whether the property is your main home and whether the home itself can be bought under the scheme.

    For most people, the first step isn’t the mortgage. It’s checking whether you actually have the right to buy the property.

    Your landlord or council is responsible for confirming this. A mortgage broker can help with the mortgage side, but they can’t confirm your legal eligibility for Right to Buy.

    What is Right to Buy?

    Right to Buy is a scheme that can allow eligible council tenants to buy their council home at a discount.

    Instead of paying the full market value, you may be able to buy at a reduced price. The discount depends on factors such as how long you’ve been a public sector tenant, the type of property, where it is and any rules that reduce or cap the discount.

    If you’re starting to look at the mortgage side, our Right-to-Buy mortgages page can help explain how lenders may look at the application.

    What might affect whether you can buy your council home?

    Several things can affect whether you can buy your council home through Right to Buy.

    CheckWhy it matters
    Tenancy typeRight to Buy usually depends on having the right type of tenancy.
    Main homeThe property usually needs to be your only or main home.
    Tenancy historyYour time as a public sector tenant can affect whether you qualify and the discount.
    Property typeSome homes may be excluded from Right to Buy.
    Legal or tenancy issuesDebt, possession or tenancy issues may affect the application.
    Landlord confirmationYour council or landlord must confirm whether you’re eligible.

    Some homes may be excluded because of the property type, the type of tenancy, planned demolition, or because the property is specially suited to elderly or disabled residents.

    This is why it’s important to check with your landlord before making firm plans around purchasing your council house.

    Why tenancy type matters

    Your tenancy type is one of the biggest factors.

    Right to Buy is mainly associated with secure council tenants. If you’re not sure whether you’re a secure tenant, your tenancy agreement or landlord should be able to confirm this.

    Some tenants may also have Preserved Right to Buy. This can apply where someone was originally a council tenant, but the home was transferred to another landlord, such as a housing association.

    The key point is that not every social housing tenant has the same rights. Before thinking too far ahead about buying a council house, make sure you understand what type of tenancy you have.

    Can housing association tenants buy their home?

    Housing association tenants may not always have the same rights as council tenants.

    Some may have Preserved Right to Buy if they were living in the home when it transferred from the council to a housing association. Others may have a different option, such as Right to Acquire, depending on their circumstances.

    Our guide to Right to Buy and Right to Acquire explains the main differences between the schemes and which type of tenant each one may apply to.

    If you rent from a housing association, check directly with them. They can confirm whether Right to Buy, Preserved Right to Buy, Right to Acquire or another option may apply.

    How much discount could you get?

    The Right to Buy discount reduces the price you pay for the property.

    The amount can depend on the type of property, how long you’ve been a qualifying public sector tenant, the value of the property, where it is and whether any rules reduce the discount.

    Here’s a simple example of how the discount could affect the purchase price:

    ExampleAmount
    Property value£180,000
    Right to Buy discount£20,000
    Discounted purchase price£160,000
    Mortgage needed before any cash contribution£160,000

    This is only a simple example. Your actual Right to Buy discount and purchase price would need to be confirmed by your landlord.

    What happens after you apply to buy your council house?

    The process usually starts with checking whether you may be eligible and then submitting the Right to Buy application to your landlord.

    At a high level, the process looks like this:

    StepWhat happens
    Check eligibilityYou look at whether Right to Buy may apply to your tenancy and property.
    ApplyYou submit the Right to Buy application to your landlord.
    Landlord responseYour landlord confirms whether they accept that you have the right to buy.
    Offer noticeIf accepted, your landlord provides details of the valuation, discount and purchase price.
    Decide whether to continueYou review the numbers and decide whether buying your council home still makes sense.
    Arrange the mortgageIf you need a mortgage, this is when the lender side becomes more important.
    Complete the purchaseYour solicitor handles the legal process through to completion.

    You don’t have to continue just because you’ve applied. If the numbers don’t work, or you decide home ownership isn’t right for you, you can choose not to proceed.

    Can you get a mortgage to buy your council house?

    Many people need a mortgage unless they can buy the property outright.

    A lender will still assess your application in the normal way. They’ll usually look at your income, outgoings, credit history, debts, age, mortgage term and the property itself.

    This is an important distinction:

    Right to Buy eligibilityMortgage approval
    Confirmed by your council or landlordDecided by the lender
    Looks at your tenancy and propertyLooks at income, affordability and credit history
    Confirms whether you can apply to buyConfirms whether you can borrow enough
    May include a discountMay depend on whether the lender accepts the discount as deposit

    Some properties can also be more difficult to mortgage. For example, certain flats, high-rise blocks or non-standard construction properties may reduce the number of lenders available.

    If you want help with a Right-to-Buy mortgage, it can be useful to speak to a broker before making assumptions about what you can borrow.

    Could the discount help with the deposit?

    In some cases, yes.

    Some lenders may allow the Right-to-Buy discount to take the place of some or all of a separate cash deposit.

    Halifax, for example, currently allows lending up to 100% of the discounted purchase price, subject to its normal valuation-based lending limits.

    However, this isn’t guaranteed. It depends on the lender, the size of the discount, the property and your wider circumstances.

    For example, one lender might be comfortable using the discount as the deposit, while another may still want you to contribute some of your own money. This is one reason why Right-to-Buy mortgage options can vary between lenders.

    You can use our Right-to-Buy mortgage calculator to get a rough idea of how the discount could affect the purchase price, mortgage amount and possible deposit position.

    What might affect your mortgage options?

    Your mortgage options may depend on both your finances and the property you’re buying.

    FactorHow it may affect your mortgage
    IncomeHelps lenders decide how much you may be able to borrow.
    Employment typeSelf-employed applicants may need different income evidence.
    Benefits incomeSome lenders may accept certain benefits income, but rules vary.
    Monthly commitmentsLoans, credit cards and other regular payments can reduce affordability.
    Credit historyMissed payments, defaults or arrears may reduce lender options.
    Age and mortgage termThe mortgage term can affect monthly payments and lender criteria.
    Property typeSome properties can be harder to mortgage.
    Discount sizeA larger discount may improve the numbers, but it doesn’t guarantee approval.
    Deposit treatmentSome lenders may use the discount as the deposit, while others may not.

    If you’re self-employed, you may need to show your income in a way the lender accepts. Our self-employed mortgage advice can help explain what lenders may ask for.

    If you’ve had credit issues, such as missed payments, defaults or arrears, your options may be narrower. In that situation, it may be worth looking at adverse credit mortgage support before applying.

    When should you speak to a mortgage broker?

    You may want to speak to a mortgage broker once you’ve started checking whether you can buy your council house, especially if you want to understand whether the mortgage side is likely to work.

    This can be helpful if you’ve received or estimated the property value, you’re unsure whether the discount can count as your deposit, you’re self-employed, you have credit issues, or the property type may be harder to mortgage.

    If you’re thinking about buying your council home and want to understand the mortgage side, Monday Mortgages can help you check your options.

    You can also use our Right-to-Buy mortgage calculator to estimate your discounted purchase price, mortgage amount and possible deposit position.

    [FAQ]

    FAQs

    Can you buy your council house?

    Some council tenants may be able to buy your council house through Right to Buy, but eligibility depends on your tenancy, property and circumstances. Your landlord or council must confirm whether you qualify.

    Can you buy your council house if you’re on benefits?

    Possibly. Being on benefits doesn’t automatically mean you can’t buy, but mortgage lenders will look at whether your income is acceptable and whether the mortgage is affordable.

    Can you buy your council house if you’re self-employed?

    Yes, being self-employed doesn’t automatically stop you from buying your council house. Lenders will usually want to understand your income, trading history and affordability before offering a mortgage.

    Can you buy your council house without a deposit?

    Some lenders may accept the Right to Buy discount as the deposit, meaning a separate cash deposit may not always be needed. This depends on the lender, your circumstances and the property.

    Can you buy your council house with bad credit?

    Bad credit doesn’t always make it impossible, but it can limit your options. Lenders will look at what happened, how recent it was, how serious it was and whether your finances are now stable.

    Is being eligible for Right to Buy the same as getting a mortgage?

    No. Right to Buy eligibility is confirmed by your landlord or council. Mortgage approval is decided by a lender based on income, affordability, credit history and the property.

    [/FAQ]

  • What is Right to Buy and how does it work?

    What is Right to Buy and how does it work?

    If you’re a council tenant and have started looking into ways to buy your home, you may have come across Right to Buy. It’s a scheme that can allow eligible tenants to buy their council home at a discount, which may make home ownership feel more achievable.

    But it’s important to understand how the scheme works before assuming it’s the right route for you. Right to Buy can reduce the price you pay, but it doesn’t automatically mean you’ll qualify, get the maximum discount or be approved for a mortgage.

    This guide focuses on Right to Buy in England. Different rules may apply in Scotland, Wales and Northern Ireland.

    [TOC]

    So what is Right to Buy?

    The simple answer is that it’s a government scheme that may let eligible council tenants buy the home they already live in for less than its full market value.

    The discount is based on your circumstances and the rules that apply when you apply. It isn’t paid to you as cash. Instead, it reduces the purchase price of the property.

    For example, if your home is valued at £180,000 and your confirmed discount is £26,000, the price you pay would be £154,000.

    That lower price can make buying your council home more realistic, especially if you’ve lived there for a long time and want to stay in the property.

    Who is Right to Buy for?

    Right to Buy is generally aimed at eligible council tenants.

    Some housing association tenants may also have something called Preserved Right to Buy if their home was transferred from the council to another landlord while they were living there.

    Other housing association tenants may need to check whether Right to Acquire applies instead. Our guide to the difference between Right to Buy and Right to Acquire explains how the schemes compare.

    At a high level, your eligibility can depend on things like:

    • Whether you’re a secure tenant
    • Whether the property is your only or main home
    • Whether the property is self-contained
    • Whether you’ve had a public sector landlord for at least 3 years in total — the years don’t have to be consecutive
    • Whether any exclusions apply

    This article isn’t a full eligibility guide, and your landlord or council should confirm whether you qualify. If you’re unsure, that’s usually the best first place to check.

    For a closer look at eligibility, see our guide to whether you can buy your council house.

    How does the Right-to-Buy discount work?

    The Right-to-Buy discount reduces the price you pay for your home. It can depend on several factors, including the type of property, where it is, how much it’s worth and how long you’ve been a qualifying tenant.

    Under the April 2026 government guidelines, maximum cash discounts are currently between £16,000 and £38,000, depending on location.

    For eligible applications received before 21 November 2024, the previous maximum discounts apply: up to £102,400 across England, or £136,400 in London boroughs.

    There are also rules that can reduce the discount. For applications made after 21 November 2024, for example, the discount can be reduced if your landlord has spent money building or maintaining the home during the previous 30 years. This is known as the cost floor rule.

    Your landlord will confirm the property valuation, the discount and the price you’d need to pay.

    How does buying your council home work?

    The exact process is handled through your landlord, but the broad steps usually look like this:

    • Check whether you may be eligible
    • Apply through your landlord or council
    • Wait for the landlord’s response
    • Receive the offer notice, valuation and confirmed discount
    • Review the price and terms
    • Arrange a mortgage if needed
    • Get legal advice and complete the purchase

    You don’t have to continue just because you’ve applied. You can pull out of the sale and continue renting at any time.

    Do you need a mortgage for Right to Buy?

    Many people need a mortgage unless they can buy the home outright with cash.

    People often use the phrase Right to Buy mortgage, but this usually means a normal mortgage used to buy a property through the Right to Buy scheme. It isn’t a separate government mortgage product.

    That means the lender will still assess your application. They’ll usually look at your income, spending, credit history, debts, age, mortgage term and the property itself.

    This is where Right to Buy mortgages can be slightly different from a standard home purchase. The property may already have a confirmed discount, and some lenders may treat that discount in a helpful way. But lender criteria can vary, so it’s worth checking your options before assuming every lender will view the application the same way.

    Can the Right-to-Buy discount help with the deposit?

    In some cases, yes. Some lenders may accept the discount as the deposit, which could mean you don’t need a separate cash deposit.

    But this isn’t guaranteed.

    It can depend on the lender, your affordability, your credit history, the property type and the size of the discount, as noted in the government guidance for buyers. Some lenders may still want you to contribute cash, or they may have specific rules around how the discount is treated.

    This is one reason Right-to-Buy mortgage advice can be useful before you get too far into the process. A broker can help you understand which lenders may be comfortable with your situation and whether the discount could work as the deposit.

    Example of how Right to Buy could work

    Here’s a simple example:

    • Estimated property value: £180,000
    • Example Right-to-Buy discount: £26,000
    • Discounted purchase price: £154,000
    • Mortgage needed: £154,000, if no separate cash deposit is used

    In this example, the discount reduces the amount the buyer needs to borrow. If a lender accepts the discount as the deposit, the buyer may not need to put in a separate cash deposit.

    But this is only an example. Your actual figures will depend on your property value, confirmed discount, lender criteria and personal circumstances.

    You can use our Right-to-Buy mortgage calculator to get a rough idea of how the discount could affect your purchase price, mortgage amount and possible deposit position.

    What could affect your mortgage options?

    Even with a discount, the lender still needs to decide whether the mortgage is affordable and whether the application meets its lending criteria.

    They may look at:

    • Your income
    • Your employment type
    • Your regular spending
    • Loans, credit cards and other commitments
    • Your credit history
    • Your age and mortgage term
    • The property type and condition
    • Whether the discount can be treated as deposit

    FCA affordability rules require regulated mortgage lenders to take account of income, committed expenditure and essential household costs when assessing affordability.

    The property itself can also matter. Some lenders may be more cautious with certain flats, high-rise blocks, non-standard construction or properties with major repair concerns.

    If you’ve had credit issues such as missed payments or defaults, that doesn’t always mean buying is impossible, but it may affect which lenders are available. In that situation, it may help to look at adverse credit mortgage options before applying.

    If you’re self-employed, lenders may also look closely at how your income is evidenced. You may want to understand self-employed mortgage advice before relying on your income figures. Our guide to self-employed Right-to-Buy mortgages explains the income evidence lenders may need.

    What other costs should you think about?

    Right to Buy isn’t only about the purchase price and mortgage payment. Once you own the home, you’ll usually be responsible for more costs than you were as a tenant.

    These can include:

    • Legal fees
    • Survey costs
    • Mortgage fees
    • Buildings insurance
    • Repairs and maintenance
    • Service charges if you’re buying a flat or leasehold house

    If you’re buying a flat, you’ll usually become a leaseholder. The landlord will normally remain responsible for maintaining the wider building and communal areas, while you’ll pay your share through service charges and may also have to contribute towards major works.

    For Right to Buy leaseholders, the landlord must also provide an estimate of service charges for the first five years when you buy.

    It’s also worth checking the current resale rules if you think you might sell later. If you sell within five years of buying through Right to Buy, you’ll usually have to repay some or all of the discount. If you sell within 10 years, you must first offer the property to your old landlord or another social landlord in the area. If you plan to borrow more after buying, our guide to releasing equity from a Right-to-Buy property explains why the discount repayment rules and lender criteria need separate consideration.

    When should you speak to a mortgage broker?

    You may want to speak to a mortgage broker once you have an idea of the property value, discount and likely purchase price.

    It can also help to speak to someone earlier if you’re unsure whether the numbers are realistic, whether your income is likely to fit, or whether the discount could be accepted as the deposit.

    A broker can help explain lender options, affordability and what may be possible based on your situation.

    If you’re thinking about buying your council home and want to understand the mortgage side, Monday Mortgages can help you check your options. You can also use our mortgage calculators to estimate your mortgage costs before deciding what to do next.

    [FAQ]

    FAQs

    What is Right to Buy?

    Right to Buy is a scheme that may allow eligible council tenants to buy the home they live in at a discount. The discount reduces the purchase price rather than being paid to you as cash.

    Who can use Right to Buy?

    Right to Buy is generally for eligible council tenants, although some housing association tenants may have Preserved Right to Buy. Your landlord or council should confirm whether you and your property qualify.

    How much discount can you get with Right to Buy?

    The discount depends on factors such as the property, location, value and your qualifying tenancy history. Under the April 2026 government guide, maximum cash discounts are currently between £16,000 and £38,000, depending on location.

    Do you need a deposit for Right to Buy?

    Not always. Some lenders may accept the Right-to-Buy discount as the deposit, but this depends on the lender and your circumstances. A separate cash deposit may still be needed in some cases.

    Can you get a mortgage for Right to Buy?

    Yes, many people use a mortgage to buy their home through Right to Buy. A Right to Buy mortgage is still assessed by the lender, so affordability, credit history and property type still matter.

    Is Right to Buy the same as getting a mortgage approved?

    No. Right to Buy relates to whether you can buy your home through the scheme. Mortgage approval is a separate lender decision based on your finances, the property and the lender’s criteria.

    [/FAQ]

  • Can your Right to Buy discount be used as a deposit?

    Can your Right to Buy discount be used as a deposit?

    If you’re buying your council home through Right to Buy, one of the biggest questions is whether you need savings for a mortgage deposit.

    The short answer is: some lenders may accept your Right to Buy discount as deposit, which means you may not need a separate cash deposit. But this isn’t guaranteed. It depends on the lender, the size of your discount, the property, your income, your credit history and whether the mortgage is affordable.

    A Right to Buy discount can make a big difference to the amount you need to borrow. But a Right to Buy mortgage still has to meet lender criteria, so it’s important to understand how the deposit side works before you apply.

    Right to Acquire is a separate scheme with different discount rules. If you rent from a housing association, our guide to Right to Buy and Right to Acquire can help you understand which scheme may be relevant before looking at the mortgage figures.

    [TOC]

    Can your Right to Buy discount be used as a deposit?

    In some cases, yes. Some lenders may treat the discount you receive through Right to Buy as your deposit.

    This can be helpful because the discount reduces the price you pay for the property. Instead of saving a traditional 5%, 10% or 15% cash deposit, your discount may create enough equity for the lender to consider the mortgage without you putting in extra money.

    For example, if your home is worth £160,000 and your council sells it to you for £144,000 after a £16,000 discount, some lenders may consider lending the full £144,000 purchase price without you adding a separate cash deposit.

    That said, lender treatment varies. Some may accept the discount instead of a separate cash deposit, while others may apply different deposit or loan-to-value requirements.

    This is also reflected in the official government guidance, which notes that some lenders treat the Right to Buy discount as the deposit while others do not.

    This is where qualified Right to Buy mortgage advice can help, especially if you’re unsure which lenders are likely to consider your case.

    How a Right to Buy deposit works

    With a standard house purchase, the deposit is usually money you contribute from your own savings. If you buy a £200,000 home with a 10% deposit, you pay £20,000 and borrow £180,000.

    Right to Buy works differently.

    There are three separate parts to understand:

    • The market value of the property
    • The Right to Buy discount offered by your council or landlord
    • The discounted purchase price you actually pay

    The discount isn’t cash sitting in your bank account. It’s a reduction in the purchase price. But because you’re buying the property below its market value, some lenders may treat that discount as equity in the property. This does not mean you can automatically withdraw that equity later; our guide to borrowing against your Right-to-Buy equity explains the restrictions and checks that can apply.

    That’s why a Right to Buy mortgage deposit can be different from a normal mortgage deposit. In some cases, the discount does the job that a cash deposit would normally do.

    That means “no cash deposit” is usually a clearer way to think about it. The key question is whether your lender will accept the discount instead of a separate cash contribution.

    Example of a Right to Buy discount as deposit

    Here’s a simple example using a £16,000 discount. Actual discounts depend on your circumstances and location, with current regional maximum cash discounts ranging from £16,000 to £38,000.

    ItemAmount
    Market value£160,000
    Right to Buy discount£16,000
    Discounted purchase price£144,000
    Cash deposit£0
    Mortgage needed£144,000

    In this example, the buyer needs a mortgage of £144,000 to buy a property worth £160,000.

    If the lender allows borrowing of 100% of the discounted purchase price at this level of loan-to-value, the buyer may not need to add a separate cash deposit.

    However, this still depends on lender criteria. If the buyer has credit issues, high debts, unstable income or the property raises concerns, the lender may take a different view.

    You can use a Right to Buy mortgage calculator to estimate your discounted purchase price and see how the numbers could look before speaking to a broker.

    Discounted purchase price vs market value

    One point that can cause confusion is loan-to-value, often shortened to LTV. With Right to Buy, lenders can apply limits using both the discounted purchase price and the property’s open-market value.

    Using the example above:

    • Market value: £160,000
    • Discounted purchase price: £144,000
    • Mortgage requested: £144,000

    The mortgage is therefore 100% of the discounted purchase price, but 90% of the property’s open-market value.

    This distinction matters because lender criteria differ.

    Lender criteria can differ on how they calculate loan-to-value for Right to Buy, so the maximum borrowing available can depend on both the discounted purchase price and the property valuation.

    Halifax says it may accept loans up to 100% of the discounted purchase price, provided the loan stays within its lending limits based on the valuation.

    This is one of the main reasons a Right to Buy mortgage with no cash deposit may be possible with some lenders, but not with others.

    Why some lenders may still ask for a cash deposit

    Even if you have a large discount, a lender may still ask for a cash deposit or extra evidence.

    Reasons can include:

    • The lender doesn’t accept the full discount as deposit
    • Your affordability is tight
    • You have missed payments, defaults or other credit issues
    • You have existing debts or commitments
    • The property type is harder to lend on
    • The valuation raises concerns
    • Your income is harder to evidence
    • The lender wants to see funds for fees or other costs

    A Right to Buy no deposit mortgage should never be treated as automatic. The discount can help, but the lender still needs to be comfortable with the whole application.

    You should also remember that no cash deposit doesn’t mean no costs at all. You may still need money for legal or conveyancing fees, surveys or valuations, mortgage fees and other costs involved in buying your home.

    What lenders may check before accepting the discount

    Before accepting the discount as your mortgage deposit amount, lenders may look at:

    • Your income
    • Your monthly commitments
    • Your credit history
    • Your employment type
    • Whether you’re self-employed
    • Whether any benefits income is being used
    • The property value
    • The property condition
    • The discounted purchase price
    • The size of the discount
    • Council or landlord paperwork
    • Whether the mortgage is affordable

    The discount can improve the equity position, but it does not replace the lender’s affordability checks. Under FCA affordability rules, regulated mortgage lenders must assess affordability using the applicant’s income and expenditure and must not base that assessment on the equity in the property.

    If you’re self-employed, the lender may need more detail about your accounts, tax calculations or business income. In that case, it may help to understand your self-employed mortgage options before applying. Our guide to self-employed Right-to-Buy mortgage requirements explains how lenders assess your income alongside the discount.

    If you’ve had missed payments, defaults or other credit issues, you may need a lender that is more comfortable with an adverse credit mortgage case.

    Can you get a Right to Buy mortgage with no cash deposit?

    Yes, it may be possible in some cases. If the lender accepts the Right to Buy discount as the deposit, and the rest of your application fits their criteria, you may be able to buy without putting down a separate cash deposit.

    But this depends on the full situation.

    A lender will still want to know that the mortgage is affordable, the property is acceptable security and your credit history fits their rules. They may also want to see that you can cover the other costs involved in buying your home.

    Before relying on the discount, check your eligibility and discount amount with your council or landlord. They are the ones who confirm whether you qualify and how much discount you may receive.

    What if you have adverse credit?

    Adverse credit doesn’t always mean you can’t get a Right to Buy mortgage. But it can reduce the number of lenders available to you.

    A lender may look at:

    • What the credit issue was
    • How long ago it happened
    • Whether it has been settled
    • How your finances look now
    • Whether the mortgage is affordable

    If the discount is strong but your credit history is more complex, it may be worth getting advice before applying.

    A failed application can be frustrating, especially if the issue could have been avoided by choosing a more suitable lender.

    Getting mortgage advice before applying

    Right to Buy can be a strong route into home ownership, especially if your discount reduces or removes the need for a cash deposit.

    But lender criteria can vary. One lender may accept the discount as deposit, while another may ask for extra cash or decline the case for a different reason.

    A broker can help check which lenders may consider your discount, how they may assess your loan-to-value, and whether your income and credit profile are likely to fit.

    If you’re buying your council home and are unsure whether your discount could work as your deposit, Monday Mortgages can help you understand your options before you apply. You can get help with a Right to Buy mortgage and check whether a lender may accept your discount instead of a separate cash deposit.

    You can also use our Right to Buy mortgage calculator to check your figures and see how your discount could affect the numbers.

    [FAQ]

    FAQs

    Can I use my Right to Buy discount as my mortgage deposit?

    Some lenders may accept your Right to Buy discount as your deposit. This means you may not need a separate cash deposit, but it depends on the lender and your wider application.

    Do I need savings to buy my council house?

    Not always. Some buyers can use their discount instead of a cash deposit. However, you may still need savings for legal fees, valuation fees, moving costs or other purchase costs.

    Can I get a Right to Buy mortgage with no cash deposit?

    It may be possible with some lenders if they accept the discount as deposit and the mortgage is affordable. It isn’t guaranteed, and lender criteria can vary.

    Do all lenders accept the Right to Buy discount as deposit?

    No. Some lenders may accept the discount as the full deposit, while others may want a separate cash deposit or apply different rules.

    Does bad credit affect using the discount as deposit?

    Yes, it can. Credit issues may limit your lender options, even if the discount means you’re borrowing less relative to the property’s market value.

    Can self-employed applicants use the Right to Buy discount as deposit?

    Potentially, yes. The lender will still need to check your income evidence, affordability and wider application before deciding.

    [/FAQ]