Deposit and loan limits
The lender may not count all the discount as a deposit, may limit the loan against its valuation, or may not advance the whole purchase price. Ask how it treats both the discounted price and open-market value.
Right to Buy · England
Right to Buy mortgage with no cash deposit
Your landlord’s discount may reduce the price enough for a lender to consider a mortgage without a separate cash deposit. That depends on the lender, the property and your finances. Find out which figures and costs to check before you apply.
Your home may be repossessed if you do not keep up repayments on your mortgage.
The short answer
Can the discount replace a cash deposit?
It can with some lenders, but it is not an automatic entitlement. The official Right to Buy guide says some lenders treat the discount as the deposit and others do not. A lender may still ask for your own contribution or lend less than the discounted purchase price. It also checks whether the mortgage is affordable and whether the property is acceptable.
This page is about the cash deposit on an England Right to Buy purchase. For scheme eligibility, discount limits and the whole buying process, use our Right to Buy mortgages hub. For renter, family-support and other purchases without savings, use our general no-deposit mortgage guide.
An illustration, not an offer
What could no separate cash deposit look like?
The written landlord offer and lender assessment, rather than an online estimate, determine the actual figures.
£200,000Illustrative open-market value in the landlord’s offer
£16,000Illustrative eligible Right to Buy discount
£184,000Illustrative discounted purchase price
If a lender accepts the discount and agrees to lend the full £184,000 purchase price, the buyer’s separate cash deposit would be £0. That does not pay the other buying costs. If a lender offers £174,000 instead, the buyer would need to find the £10,000 difference plus costs or reconsider the plan.
These figures show the arithmetic only. A lender can value the property differently and use its own loan-to-value rules. A loan equal to the discounted price should not be casually described as 100% of the open-market value.
The lender decides
Why might you still be asked for cash?
The discount is one part of the mortgage assessment, not a substitute for every check.
Property and lease
Condition, construction, a flat’s building and the lease can affect mortgage availability. The official guidance warns that some lenders will not lend on certain high-rise or non-traditional properties.
Applicant and budget
Income, regular spending, debts and credit history still matter. A discount does not guarantee a mortgage or an affordable repayment, particularly if home ownership brings costs that rent did not include.
The government’s mortgage guidance distinguishes the landlord’s sale from the lender’s loan decision. If credit is a concern, our Right to Buy with bad credit guide covers that separate assessment.
Plan beyond the deposit
What money might you still need?
Before completion
Allow for conveyancing and searches, an independent survey, mortgage or advice fees where applicable, and Stamp Duty Land Tax if due. Ask for written quotes rather than assuming each item will be added to the loan.
At the point of moving
Buildings insurance, moving expenses and urgent repairs may call for cash. If the lender offers less than the discounted price, you would also need to resolve the shortfall before completion.
After you own it
Budget for the mortgage, maintenance and a reserve for unexpected work. For a flat or leasehold house, read the landlord’s offer for estimated service charges and planned works, then ask a conveyancer what obligations may continue.
The official landlord-offer guidance explains what the offer should include. A no-cash-deposit mortgage should not be taken to mean a cash-free or risk-free purchase.
Before seeking a lender decision
Bring the actual offer into the conversation
If you have a Section 125 offer, note the landlord’s market value, discount, purchase price, property type and deadline. Say whether you have any cash available for a deposit or buying costs, and describe your broad income, regular commitments and credit history. If you have not received an offer yet, explain your stage and avoid treating a discount estimate as final.
We can then discuss what needs confirming with a lender and conveyancer before you make a full application. An agreement in principle is only provisional. Do not put account numbers or copies of financial documents in a general enquiry message.
There is no broker fee for our initial evaluation. Our Terms of Business explain later fee stages and exceptions; we agree applicable charges before chargeable work. An enquiry does not guarantee a suitable lender or offer.
Google reviews
Live reviews
Read the original Google feedback before you enquire. A review tells you about a client’s experience, not whether a lender will accept your deposit position.
See how clients describe the advice
When the discount and cash position are unclear, you should expect an adviser to explain the checks and costs in plain language. Read the live profile to judge how clients describe those conversations.
We link directly to the source instead of selecting a quote or implying that another person’s outcome will be yours.
Find the right detail
Related decisions have their own guides
- Right to Buy mortgagesScheme eligibility, the landlord’s offer and the wider purchase.
- No-deposit mortgages generallyRenter and family-supported routes outside Right to Buy.
- Right to Buy with bad creditHow your credit record changes the lender conversation.
- Family income supportBuyer, borrower and ownership roles under the scheme.
- Right to AcquireDifferent purchase right for some housing association tenants.
- After buyingQuestions about changing the mortgage later.
Common questions
Right to Buy deposit FAQs
Can I use my Right to Buy discount instead of a cash deposit?
Possibly. Official Right to Buy guidance says some lenders treat the discount as the deposit and others do not. The lender still checks the purchase price, valuation, proposed loan, applicants and property before deciding whether separate cash is needed.
Does no cash deposit mean a 100% mortgage?
Not necessarily. A loan covering the full discounted purchase price is not automatically 100% of the property’s open-market value. Lenders can calculate loan-to-value and apply limits differently. Ask which value and price the proposed lender will use.
Can I buy my council home without any savings?
You may not need a separate cash deposit if a suitable lender accepts the discount, but you should still budget for conveyancing, a survey, tax where due, moving costs, insurance and any immediate repairs. Leasehold service charges may also apply. A cash-free purchase should not be assumed.
What if the lender values the home below the landlord’s figure?
A lender uses its own assessment of the property and borrowing limit. If it will not lend the full discounted purchase price, you may need cash to cover the gap, a different suitable lender, or to reconsider the purchase. Ask your adviser and conveyancer to compare the landlord’s offer with the lender’s valuation.
Can I put in savings as well as use the discount?
Yes, if the lender accepts the source of funds and the transaction. Your own cash may reduce the amount borrowed or cover a shortfall and buying costs. Ask for a mortgage illustration showing the resulting loan, payments, fees and any early repayment charge.
Does bad credit change the deposit position?
It can. A lender may take a different view of the loan, property and applicant when there are missed payments, defaults or other credit issues. The discount does not override credit or affordability checks. Explain the history before applying so the available routes can be assessed.
Do I need a mortgage in principle before applying to my landlord?
Official Right to Buy guidance says a landlord cannot refuse a Right to Buy application just because you do not have a mortgage in principle, though it may request one for anti-money-laundering checks. Mortgage planning is still sensible before you commit to buying; an agreement in principle is not a final offer.
Does this advice also apply to Right to Acquire?
Right to Acquire is a separate scheme for some housing association tenants. Its eligibility and discount rules differ. Ask your landlord which scheme applies, then check the mortgage and cash requirements for that specific purchase.
Official scheme and cost links checked 13 October 2026. General information, not personal mortgage, housing, tax or legal advice.
Start with the price you have been offered
Tell us whether you have a written offer and how much cash you can put towards the purchase and costs. We can help identify the lender questions before you commit to an application.
Your home may be repossessed if you do not keep up repayments on your mortgage.