Right-to-buy mortgage calculators

The Right to Buy discount is a government-funded reduction in the purchase price of a council house.

The current available Right to Buy discounts depend on:

• where you live
• your property type – are you purchasing a house or flat?
• how much your property is worth
• how long you’ve been a tenant with a public sector landlord

The discount available to you will be whichever is lower:

• 70% of the value of your property, or
• the maximum discount available in your region

If you need help calculating the discount available to you, our helpful Right to Buy discount calculator is just below:

Council tenants purchasing their property through Right to Buy have access to the same mortgages as any other kind of homebuyer. In fact, some lenders have products tailored specifically for people using Right to Buy. But, as ever, a mortgage applicant will need to pass a lender’s individual borrowing criteria. This will include an affordability assessment.

• Government assistance: The Right to Buy scheme offers significant discounts on the purchase price of council houses and flats.
• Flexible financing: Our mortgage advisors can help you find the best loan-to-value ratio and repayment terms to suit your budget.
• Expert guidance: Our team is experienced in helping buyers navigate the complexities of the Right to Buy process.

The government Right to Buy scheme gives secure tenants of council accommodation the right to purchase their homes at a discounted rate below the market valuation.

In order to be eligible for the Right to Buy scheme, both you and your property need to fulfil a few key criteria. As the tenant, you need to confirm the following:

• You are a secure tenant.
• You have been a public sector tenant for 3 years or more – but that doesn’t have to have been 3 years in a row.
• You do not have any legal problems with debt.
• You do not have any possession orders outstanding against you.

The property must also:

• Be your only or main place of residence.
• Be self-contained.
• Not be housing specially built for elderly or disabled tenants.
• Not be scheduled for demolition.

If you and your home meet all the above basic criteria, then you can start the application process. You may also have something called ‘Preserved Right to Buy’. This applies if your council property was sold to a private landlord (such as a Housing Association) while you were a tenant.

You are able to apply for Right to Buy on a sole basis if you are the named tenant. Alternatively, jointly with people who are named as joint tenants (such as your partner, spouse or close friend). Or up to three family members who are living with you in the property (even if they are not named in the tenancy

Determining how much you can borrow under the Right to Buy scheme depends on several factors, including:

• Your income: Lenders will assess your current income and potential future earnings to determine your affordability.
• Your outgoings: Monthly expenses like rent, bills, and other commitments will be considered.
• Your deposit: A larger deposit can significantly increase your borrowing power.
• The Right to Buy discount: The government discount on the property value.
• Your credit history: A good credit score can improve your chances of securing a favourable mortgage deal.

To get a precise estimate of your borrowing capacity, consider using our calculator or consulting with a mortgage advisor. They can provide tailored advice based on your specific financial circumstances.

Before embarking on your Right to Buy journey, it’s crucial to consider the following financial factors:

• Legal fees: These costs can vary, so budgeting for them is essential.
• Valuation fees:  This is for a lender to assess the condition and value of the property
• Stamp duty land tax (SDLT): You may be liable for SDLT, depending on the purchase price of your property.
• Mortgage repayments: Calculate your monthly mortgage repayments to ensure they fit within your budget.
• Maintenance costs: Factor in ongoing maintenance and repair expenses for your property.
• Insurance: Obtain adequate home insurance to protect your investment.

By carefully considering these financial aspects, you can make informed decisions and avoid unexpected costs.

To make the most of the Right to Buy scheme, consider these expert tips:

• Seek professional advice: Consult with a mortgage advisor to explore your options and find the best deal.
• Improve your credit score: A good credit score can enhance your chances of securing a favourable mortgage.
• Save for a substantial deposit: A larger deposit can lower your monthly repayments and improve your borrowing power.
• Understand the eligibility criteria: Ensure you meet the eligibility requirements for the Right to Buy scheme.
• Be prepared for the application process: Gather all necessary documents and be patient throughout the process.
• Consider additional costs: Factor in potential legal fees, stamp duty, and other expenses.

By following these tips, you can increase your chances of a successful Right to Buy application and secure a brighter future as a homeowner.