Bad Credit Mortgages we offer:

Right to Buy Mortgages with Bad Credit

If you are looking to buy your home through the Right to Buy scheme, we have lenders available who can help and you can use the discount offered by the council as your deposit.

If you have a low credit score or have bad credit registered, we can have specialist lenders available that are able to provide bad credit right to buy mortgages.

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Right to Buy Bad Credit Mortgages from The Money Hub

The Right to Buy scheme was first introduced in 1980, and it has since helped millions of council tenants to purchase their rented properties – including people with bad credit. The Right to Buy scheme helps eligible council tenants to buy their home with a discount of up to £84,200 across England and in London Boroughs it is £112,300.

As expert Right to Buy mortgage brokers for people with bad credit, we help clients to access an exclusive range of products from specialist lenders. Owning a home is a dream for most tenants. If you are a council tenant, the Right to Buy mortgage scheme gives you the possibility to buy the property you live in at a heavy discount. In this article, we’re going to explain the existing rules and how to adhere to the scheme.

What is the Right to Buy Scheme?

The Right to Buy scheme is a Government scheme introduced through the Housing Act 1980 by Margaret Thatcher that allows council tenants to buy their property at a discount. This discount is often accepted as a deposit by lenders, giving you easier access to a mortgage if you do not have enough savings to pay for any upfront costs.

This scheme is fully available in England, but it has been abolished completely in Scotland. Wales is also abolishing it, while if you are in Northern Ireland, you can only get a maximum discount of £24,000, depending on how long you have lived in the property for.

If you live in England, you must comply with the following rules to adhere to the Right to Buy:

  • This must be your main home
  • The home must be self-contained
  • There must be a legal tenancy contract between you and the council
  • You have had a public sector landlord for at least three years

Joint applications are accepted if you apply with someone who shares your tenancy or with a family member that has lived with you for at least 12 months if they do not share the tenancy.

How much is the discount?

How much discount you can get depends on whether you are renting a house or a flat, as well as for how long you have lived there.

  • If you have lived in a house for three to five years, you can get up to 35% discount. This amount goes up with 1% for each additional year you lived there, up to a maximum of 70% or £84,200 across England (£112,300 in London), whichever is lower.
  • If you have lived in a flat for three to five years, you can get up to 50% of the discount, which goes up by 2% for each additional year up to the maximum threshold indicated above.

Can I qualify for the scheme if I have bad credit?

If you have bad credit problems, or you have a bad credit history, then it could affect your application for a Right to Buy mortgage. However, with the help of The Money Hub, we can help you to give yourself the best chance of having your application accepted.

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What to Expect from The Money Hub

We Gather Information Required to Search the Market

We gather some basic information about you using our quick online form

Conduct a Whole of the Market Comparision

We will search 100’s of providers to find you the lenders who are willing to approve your mortgage

Provide full service through to completion

We will show you rates along with the monthly repayments. This will not affect your credit score. We’ll also explain any fees if you progress at this point and as long as you are happy to proceed, provide you with the full service through to completion of your mortgage being accepted

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Right to Buy Mortgage FAQ's

What is a right to buy mortgage?
This is where the council allows a tenant to purchase the property that they live it at a discount. This discount can be used as a deposit when applying for a mortgage. The amount of the discount will depend upon many factors such is how long you have been a tenant for and whether the property is a flat or a house. You can visit the governments Right to Buy Calculator to give you a guide on what discount you may qualify for.
Can I get a right to buy a mortgage with no deposit?
Yes - Some lenders will lend you 100% of the discounted purchase price. Each lender will have a different criteria that you have to qualify for, so you should speak to an experienced broker in this area. It is also worth noting that when buying a property you will need to have additional funds to pay for set up costs such as a valuation fee, mortgage broker fees, and conveyancing fees.
How does a right to buy mortgage work?
The council will value the property and confirm the amount of discount that you are entitled to. Let’s say for example the property valuation is £100,000 and you are entitled to a £20,000 discount, you can use this discount as a deposit and therefore get a mortgage for £80,000. The first step is visit the governments Right to Buy calculator to get an idea of the potential discount and then speak to a mortgage broker to explore your mortgage options. If a mortgage is possible and you wish to proceed, you will need to complete the Right to Buy Application Form to start the process.