Thinking of buying your council home through Right to Buy but struggling to get a mortgage? You’re not alone. Many people across the UK run into this issue, and while it can feel like a setback, it’s not the end of the road. Here’s what you need to know – and what you can do next.
Why Mortgage Applications Get Declined for Right to Buy
Before we look at your options, it’s worth understanding why lenders sometimes say no. Some common reasons include:
- Poor credit history – missed payments, CCJs or defaults can put lenders off.
- Low income or an income that doesn’t meet the lender’s criteria.
- Unusual employment – if you’re self-employed or on a temporary contract, it might complicate things.
- Age limits – some lenders have upper age caps for when the mortgage ends.
- The property itself – not all council homes are straightforward. If it’s a high-rise flat or non-standard construction, some lenders might be wary.
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What Can I Do If I’ve Been Refused a Mortgage?
Getting turned down isn’t the end of the Right to Buy journey. There are a few practical steps you can take.
Check Why You Were Refused
Ask the lender for feedback. They’re usually willing to explain what caused the issue. Once you know the reason, you can start to put it right.
Speak to a Specialist Right to Buy Mortgage Adviser
Not all mortgage brokers are familiar with Right to Buy cases. Look for one who deals with council tenants and knows the lenders that consider these applications more favourably. They might find you a deal you didn’t know existed.
Consider a Guarantor or Joint Application
If your income is the problem, some lenders may accept a family member as a guarantor or let you apply jointly with someone else to boost affordability.
Improve Your Credit Profile
If your credit score is holding you back, work on clearing debts and paying bills on time. It can take a few months, but it might make all the difference next time you apply.
Wait and Reapply
Sometimes the best option is to pause and come back stronger. Use the time to save a bit more, sort your finances, or find a lender who’s a better fit.
Can I Still Buy My Council House Without a Mortgage?
Yes – if you have the funds available, you can buy your home outright using savings, help from family, or alternative finance. But for most people, a mortgage is essential. If you can’t get one now, you might still be able to later, especially with the right support.
How Long Does the Right to Buy Offer Last?
Once you receive your offer from the council (called a Section 125 Notice), you have 12 weeks to accept it and a further 12 weeks to complete. If you run into mortgage delays, ask your council for an extension. They often grant extra time if you’re actively trying to arrange finance.
Don’t Give Up – Support Is Available
Many tenants worry that not getting a mortgage means they’ve lost their only chance to buy their home. But the Right to Buy scheme is flexible, and there’s no rule saying you can only try once. If you’re determined to own your home, don’t give up. With the right advice, a clearer picture of your finances, and possibly a bit of time, you may be able to try again.
FAQs
Yes, you can reapply. If your mortgage application is declined, you’re allowed to try again – either with a different lender or after improving your financial situation. There’s no rule that stops you from making multiple applications as long as you’re still eligible under the Right to Buy scheme.
Yes, some lenders and brokers specialise in Right to Buy. They understand the process and are more likely to accept applications that involve council properties, discounted prices, or unique financial situations. Speaking to a specialist can improve your chances of getting approved.
Many lenders allow 100% mortgages based on the Right to Buy discount. That means you may not need to put down a traditional cash deposit. However, your income and credit history will still be assessed. If affordability is an issue, shared ownership or applying with a partner may help.
No, a mortgage refusal doesn’t affect your discount. The discount you’re offered by the council is based on how long you’ve been a tenant, and it remains valid for a set period. If your mortgage is delayed or declined, you can ask the council for an extension before reapplying.
Absolutely – your tenancy continues as normal. If you’re not able to buy your home, your status as a secure council tenant isn’t affected. You can continue renting and may be eligible to apply again in future if your situation improves.
Yes – though they’re less common. Some buyers use personal savings, family assistance, or private finance options. But most people rely on a mortgage. If you’re exploring alternatives, it’s wise to get legal and financial advice to avoid risks.
Yes, but extensions are possible. You usually have 12 weeks to accept your Right to Buy offer and a further 12 weeks to complete. If you’re struggling to get a mortgage in time, you can request more time from the council – especially if you show you’re actively trying to arrange finance.
It can, but not always. Some lenders are more flexible with poor credit than others, particularly if the issue was a while ago or you’ve taken steps to improve your finances. A mortgage broker with experience in Right to Buy and bad credit cases can help guide you.
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