How to Apply for a Right to Buy Mortgage

Thinking of buying your council home? Brilliant! The Right to Buy scheme has helped thousands of tenants take that exciting step onto the property ladder – and if you’re eligible, it might just be your time too. But before you pop the kettle on and start picking out new curtains, let’s chat about something important: how to apply for a Right to Buy mortgage!

Whether you’re in a cosy council flat in London or a semi-detached home in Manchester, getting the mortgage sorted is one of the key steps in turning your rented home into your own castle. Don’t worry – it’s not as complicated as it sounds, and I’ll walk you through it all.

Ready? Let’s go!

What Is a Right to Buy Mortgage?

Let’s break it down simply. A Right to Buy mortgage is just like a normal mortgage, but it’s specifically used when you’re purchasing your council (or housing association) home through the government’s Right to Buy scheme.

What makes it unique? You’ll get a generous discount – and in most cases, you can use that discount as your deposit! That’s a huge advantage. It’s what makes Right to Buy mortgages so appealing – especially if saving for a hefty deposit has felt impossible.

Who Can Apply for a Right to Buy Mortgage?

Before diving into the mortgage side, let’s be sure you’re eligible. To apply for a Right to Buy mortgage in the UK, you’ll typically need to:

• Have been a public sector tenant for at least three years (this can be non-consecutive).
• Live in a council home or one previously owned by a council and now managed by a housing association.
• Use the property as your main home – not a holiday let or rental!

If that sounds like you – fantastic! You’re ready to explore your mortgage options.

Step-by-Step: How to Apply for a Right to Buy Mortgage

1. Get Your Right to Buy Application in First!

You can’t get a Right to Buy mortgage without the scheme itself in motion. So, your very first move is to apply for Right to Buy using the RTB1 form. You’ll send this to your landlord (usually the council or housing association). They’ve got four weeks to respond, or eight if they’ve only recently taken over the property.

Once approved, you’ll receive an offer from your landlord that includes:

• The price you’ll pay (after discount),
• The discount amount,
• A property valuation.

Top tip: The higher your tenancy length, the bigger your discount – up to £96,000 outside London and £127,900 in London (as of 2025)!

2. Check Your Credit and Finances

Next up: time for a little financial housekeeping. Lenders will want to see that you can manage your repayments, so:

• Check your credit score (you can do this free with companies like ClearScore or Experian).
• Sort any outstanding debts if you can.
• Get your documents ready – payslips, P60s, bank statements – the usual suspects.

And remember, the Right to Buy discount often acts as your deposit. That’s a massive help, but lenders still want to see you’re a safe bet financially.

3. Speak to a Mortgage Adviser Who Knows Right to Buy

This bit is crucial. Not all lenders are comfy with Right to Buy mortgages, so your best bet is to speak to a mortgage broker who specialises in them. They’ll know exactly who’s offering good rates, what documents you need, and how to structure your application to boost your chances.

Whether you’re on Universal Credit, self-employed, or have a patchy credit history – there are still options. An experienced adviser can help you find the right fit.

4. Get a Mortgage in Principle (MIP)

Before you make your move, ask your broker (or lender, if you’re applying directly) for a Mortgage in Principle. This is a non-binding agreement that says, “Yes, based on what we see, we’re happy to lend you up to £X.”

It’s a great confidence boost and shows your landlord that you’re serious and ready to proceed.

5. Apply for the Mortgage Properly

Now the real application begins! With your RTB offer letter in hand and your MIP sorted, you’ll fill out your full mortgage application. Expect to provide:

• Identification (passport or driving licence),
• Proof of income and outgoings,
• Your RTB offer document,
• Evidence of any additional savings or income.

Your lender will also do a valuation of the property – even though your landlord already did one. It’s just standard procedure.

6. Legal Bits and Completion

Once approved, your solicitor will handle the legal work – conveyancing, checks, contracts, the whole lot. When everything’s signed off and your mortgage funds are released, congratulations – you’re officially a homeowner!

You’ll get the keys (which you probably already had!) but this time, it’s yours. What a moment!

Is Right to Buy Worth It?

For many in the UK, Right to Buy is the most realistic route to homeownership. With that chunky discount acting as your deposit, you skip the saving struggle that puts homeownership out of reach for so many. Plus, you’re buying a place you already live in and love – what could be better?

Yes, the mortgage process can feel daunting, but once you know the steps and get the right advice, it all falls into place.

So if you’re dreaming of owning your council home, don’t wait around – start your Right to Buy journey today!

Getting Professional Help

Right to Buy mortgages involve unique considerations that benefit from professional guidance. A good mortgage broker can navigate the limited lender market and present your application effectively.

Similarly, using a solicitor experienced in Right to Buy transactions can help avoid delays and ensure you understand all the legal implications of your purchase.

The Right to Buy scheme offers a genuine opportunity to become a homeowner, often with substantial savings compared to open market purchases. With careful preparation and the right professional support, the mortgage application process doesn’t need to be overwhelming.

Taking time to understand the process, gather comprehensive documentation, and work with experienced professionals will give you the best chance of successfully securing your Right to Buy mortgage and taking that important step onto the property ladder.

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