What will you need to pay, and when?
If you buy your council home outright, you do not need a mortgage deposit, but you still need the purchase money and buying costs. If you borrow, some lenders may count your Right to Buy discount towards their deposit requirement and others may not. The written landlord offer and a case-specific mortgage assessment are the starting points.
First, which “deposit” do you mean?
The word can describe different payments. Separating them prevents a reassuring answer about the mortgage deposit from hiding the cash you may still need.
Mortgage deposit
Your contribution to a purchase funded by a lender. A lender may treat the Right to Buy discount as part or all of this contribution, subject to its policy, valuation and the rest of your application.
Money under the sale contract
Your conveyancer will explain what, if anything, must be paid when contracts are exchanged and what balance is needed at completion. A lender’s deposit calculation does not itself settle those legal payment dates.
Buying costs
Legal work, searches, any survey or valuation, lender or broker fees where applicable, tax if due and money for ownership costs are separate from the advertised discount.
Short answer: there is no single rule that every Right to Buy buyer needs a cash mortgage deposit. There is also no safe assumption that a purchase can complete with no money available.
If you are buying outright with cash
You do not need a mortgage deposit because there is no mortgage. You must still be able to fund the discounted purchase price and the associated costs. Your conveyancer should confirm the contract, any payment due at exchange and the amount and timing of the completion funds. They will also ask for evidence of where the money came from.
If you are relying on a family contribution, sale proceeds or another source that is not yet available, tell the conveyancer early. Do not assume a future transfer will arrive in time for the contractual deadline. A mortgage broker is relevant if you need borrowing; the landlord and conveyancer handle the scheme offer and legal purchase.
If you need a Right to Buy mortgage
The government guide says lenders differ: some treat the Right to Buy discount as the deposit and some do not. The amount you can borrow also depends on affordability, credit history, the property and the lender’s valuation. A large discount is therefore not a mortgage offer.
Count Ready’s Right to Buy mortgage with no cash deposit guide explains the lender decision and possible funding gap in detail. If your concern is how the landlord’s discount changes the price and mortgage calculation, use the Right to Buy discount and mortgage guide. This article stays focused on the money needed across the buying process.
Before applying, ask an adviser to compare the landlord’s offer, likely borrowing need and available savings. Avoid sending several speculative applications without understanding why one lender may decline.
Use the landlord’s written offer, not an old discount example
Your landlord’s offer states the valuation, the discount and how each was worked out, the proposed purchase price, and information about known structural problems. For a flat or maisonette it also includes estimates of service charges for the first five years. Check the offer with your conveyancer before committing to costs.
Maximum Right to Buy discounts changed for applications received from 21 November 2024 and now vary by region, with local exceptions. Earlier applications can be treated differently. An example using a historic £60,000 discount cannot establish the discount on a new application. The current GOV.UK discount rules explain the limits; your own landlord’s written offer gives the case-specific figure.
Useful calculation: start with the purchase price in the offer. Subtract any savings you plan to contribute. The remainder is the amount you would seek to borrow, before any fees added to the loan. A lender can value the property differently, so this is a planning figure rather than an approved loan.
What else should you budget for?
Before completion
- Conveyancing, searches and Land Registry costs.
- An independent survey if you choose one, plus any lender valuation charge.
- Mortgage and advice charges where applicable; ask for the agreed fees before chargeable work.
- Stamp Duty Land Tax if due for your transaction. Your conveyancer can check the position.
After you own the home
- Mortgage payments if you borrowed, alongside council tax, utilities and insurance.
- Repairs and maintenance previously handled by the landlord.
- For leasehold property, service charges and possible major works. Read the landlord’s estimate and ask what may change later.
- A cash reserve for unexpected property costs.
The affordability question is wider than “Can I find a deposit?” Compare your likely ownership costs with what you currently pay as a tenant. A leasehold flat can be particularly different from renting; ask the conveyancer to explain the lease and planned works.
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Questions to resolve before spending money
- Landlord: Has my Right to Buy application been accepted, and what does the written offer say?
- Conveyancer: What must I pay at exchange and completion, and which legal or tax costs apply?
- Adviser: Does a suitable lender accept this discount as a deposit for my circumstances and property?
- Adviser: What is the likely borrowing shortfall if the lender’s valuation or maximum loan differs from the offer?
- Conveyancer: If the home is leasehold, what does the lease say about service charges and planned major works?
- You: Can I afford the ongoing costs and keep enough savings for repairs and surprises?
If you have an IVA, CCJ, defaults or other credit issues, the Right to Buy and bad credit guide covers that separate lending question.
Common questions
Do I need a deposit to buy my council house with cash?
You do not need a mortgage deposit when you are not borrowing. You still need the discounted purchase price and buying costs. Ask your conveyancer whether the contract requires any payment at exchange and when the balance must reach them.
Can the Right to Buy discount replace a cash mortgage deposit?
Some lenders treat the discount as a deposit and others do not. Acceptance depends on their current policy and assessment of you and the property. A discount does not remove legal fees, surveys or other buying costs.
Can I buy if I have no savings?
A lender may consider a mortgage without an additional cash deposit, but you still need a realistic way to meet buying and ownership costs and any funding gap. Ask an adviser and conveyancer to check the numbers before you commit.
Does the landlord’s offer guarantee the mortgage amount?
No. The offer sets out the landlord’s valuation, discount and proposed price. A lender makes its own credit, affordability and property assessment and can arrive at a different lending amount.
Should I use an old Right to Buy discount example to plan my purchase?
No. The maximum discount changed for applications received from 21 November 2024 and varies by location, with exceptions. Use the current GOV.UK rules for background and your own written landlord offer for the proposed price.
Sources and scope
This guide covers Right to Buy in England and general buying-cost questions. It does not determine scheme eligibility, the legal contract, tax due or whether a lender will accept an application.
- GOV.UK: Your right to buy your home — borrowing, lender treatment of discount and ownership costs.
- GOV.UK: Your landlord’s offer — price, discount, property details and service-charge estimates.
- GOV.UK: Right to Buy discounts — current regional limits and pre-21-November-2024 applications.
- MoneyHelper: Exchange and completion — why the conveyancer must confirm payment timing.
Sources reviewed 13 October 2026. Scheme rules and lender policies can change. This is general information, not personal mortgage or legal advice.
Useful next reads
Need to work out the borrowing gap?
Tell Count Ready the proposed price and discount in your landlord’s offer, your approximate savings, income and any credit or property issue. An adviser can explain which mortgage questions need checking. Keep identity documents, bank statements and the full offer out of a general enquiry form until a secure route is agreed.
No mortgage or deposit position is guaranteed. Your home may be repossessed if you do not keep up repayments on your mortgage.