Right to Buy Mortgage Nottingham

What Is the Right to Buy Scheme?

Right to Buy is a government scheme that gives eligible council tenants in England the opportunity to purchase their home at a discount on its full market value. The scheme has been running since 1980 and has helped over two million people move from renting to owning their home.

The property is valued at its full open market price, and the discount is then applied before you purchase — meaning you're buying at a reduced price rather than receiving a cash payment.

It's worth noting that the scheme has undergone significant changes in recent years. If you're considering applying, understanding the current rules is important — and speaking to a mortgage broker early in the process can save you time and help you avoid surprises.

Am I Eligible for Right to Buy?

To qualify for the Right to Buy scheme, you generally need to meet the following criteria:

• You must be a secure tenant of a council property (or hold a Preserved Right to Buy if your home was transferred to a housing association)
• You must have been a public sector tenant for a qualifying period — currently three years, though this is set to increase to ten years under reforms being introduced in 2025/2026
• The property must be your main home
• The property must be self-contained (you don't share rooms with other tenants)
• You must not be subject to a possession order, be bankrupt, or have significant outstanding debts

The qualifying tenancy doesn't have to be continuous, and time spent at different council or public sector properties counts towards the total. You can also apply jointly with someone who shares your tenancy, or with up to three family members who have lived with you for at least the past 12 months.

Certain properties are excluded from the scheme, including homes specifically designed for elderly or disabled residents, sheltered housing, and some properties in rural areas.

You can check your eligibility for the scheme on the GOV.UK Right to Buy guidance page.

How Much Discount Can I Get?

The discount you receive depends on how long you've been a public sector tenant and whether your home is a house or a flat. The scheme changed significantly in November 2024, with maximum cash discounts reduced from their previous levels. Here's how the current discount structure works:

Houses

The discount starts at 35% after three years of qualifying tenancy and increases by 1% for each additional year, up to a maximum of 70% — though the cash cap will apply before you reach that percentage in most cases.

Flats

The discount starts at 50% after three years and increases by 2% for each additional year, again up to 70% subject to the cash cap.

Current Maximum Cash Discounts

Since November 2024, the maximum cash discount has been reduced significantly. The current caps are £16,000 to £38,000 depending on your location, down from the previous maximums of £102,400 across England and £136,400 in London. Applications received before 21 November 2024 were eligible for the higher discount levels under the old rules.

Further reforms are being introduced — including a proposed increase in the minimum qualifying period from three to ten years, reduced percentage discounts starting at 5% rising to 15%, and an extended resale repayment window of ten years rather than five. If you're considering applying, speaking to us sooner rather than later is advisable while the current rules are still in place.

Do I Need a Deposit for a Right to Buy Mortgage?

In many cases, your Right to Buy discount can be used in place of a cash deposit. Many lenders will treat the discount as equity, meaning the gap between the discounted purchase price and the full market value acts like a deposit — potentially giving you access to better mortgage rates without needing significant savings.

For example, if your home is valued at £180,000 and you receive a £36,000 discount, you'd be purchasing at £144,000. Some lenders treat that £36,000 as a 20% deposit, which can unlock more competitive mortgage rates.

Not all lenders handle this the same way, which is one reason it's worth working with a broker who can identify the right lender for your circumstances and ensure you're not leaving money on the table.

What Is the Right to Buy Mortgage Process?

The process broadly works as follows:

• Check eligibility — confirm you meet the qualifying criteria and contact your council to obtain an application form
• Submit your application — the council has up to four weeks to confirm whether you're eligible (eight weeks if you've been a tenant for less than three years with your current landlord)
• Receive your Section 125 offer notice — this document sets out the full market valuation of your property and the discount you're entitled to. You have 12 weeks to accept or decline
• Challenge the valuation if needed — if you think the market value is too high, you can request an independent valuation from the District Valuer within three months of receiving the Section 125 notice
• Arrange your mortgage — this is where we come in. You'll need to have your mortgage in place within the 12-week offer window, alongside instructing a solicitor for conveyancing
• Complete the purchase — once your mortgage is arranged and legal work is complete, you'll agree a completion date with the council

The 12-week window from receiving your offer can feel tight when you're arranging a mortgage and conveyancing at the same time. Speaking to a mortgage broker before you receive your offer notice means you're ready to move quickly when the time comes.

What Happens If I Sell Within the Repayment Period?

If you sell your home within five years of purchasing it through Right to Buy, you'll need to repay some or all of the discount — the amount reduces the longer you've owned the property. The council may also have a right of first refusal, meaning you'd need to offer the property back to them before selling on the open market.

Under proposed reforms, this repayment window is set to be extended to ten years, so it's important to factor this into your longer-term plans before you apply.

Can I Borrow Extra for Home Improvements?

Some lenders will allow you to borrow additional funds on top of the purchase mortgage to carry out home improvements — such as a new kitchen, bathroom, windows, or other works. This isn't available with every lender, but it's worth discussing if you're planning to make changes to the property after purchase. We can identify which lenders offer this facility as part of a Right to Buy mortgage.

What About the Right to Acquire?

If you're a housing association tenant and don't qualify for Right to Buy, you may be eligible for Right to Acquire instead. This is a similar scheme but with smaller discounts, typically ranging from £9,000 to £16,000. Eligibility rules are more restrictive, but if you qualify it can still represent a meaningful saving on the purchase price. Get in touch and we can talk you through whether Right to Acquire could be an option for you.

How Premier Mortgage Services Can Help

A Right to Buy mortgage isn't quite the same as a standard purchase — not every lender accepts the discount as a deposit, and some are better equipped than others to handle the specific requirements of the scheme. Getting this right matters, both for your chances of approval and for the rate you end up on.

At Premier Mortgage Services, we work with a wide panel of lenders and can help you:

• Understand exactly how your discount affects your mortgage options and loan-to-value
• Identify lenders who accept the Right to Buy discount in place of a cash deposit
• Find the most competitive rate available based on your circumstances
• Move quickly once you receive your Section 125 offer notice, so you don't lose your offer window
• Coordinate with your solicitor to keep the process on track through to completion

We also offer advice on remortgaging if you've already completed a Right to Buy purchase and want to review your current deal, and on buy-to-let mortgages if you're considering your options as a property owner further down the line.

Get in Touch

Thinking about buying your council home through Right to Buy? We'd love to help you understand your options and get the right mortgage in place. Contact Premier Mortgage Services today for honest, straightforward advice with no obligation.

• Call us: 0115 949 9988
• Online: Complete our contact form

We're based in Nottinghamshire and work with clients across the region and beyond. Whatever stage you're at, we're happy to have a conversation.