Guide to Right to Buy Mortgages

Guide to Right to Buy Mortgages

What is Right to Buy? 

Right to Buy is a government scheme that helps council tenants, and some housing association tenants, buy their home by offering a large discount. 

Do you qualify for Right to Buy? 

You can qualify for the Right to Buy discount if: 

  1. You’ve had a public sector landlord for at least three years 
  1. The property will be used as your main residence 
  1. The property is not shared with anyone else 
  1. You do not have any large debts and have not been declared bankrupt 
  1. You have not been threatened with eviction 
  1. Your home is not reserved for older or disabled people 
  1. There is not a shortage of housing in your area 

How much is the discount? 

Now, this depends on a number of things: 

  1. Where you live 
  1. How long you have been a tenant 
  1. Whether you live in a house or a flat 

The maximum discount you could get is: 

-£116,200 in London 

-£87,200 anywhere else in England 

The longer you’ve been a tenant, the bigger your discount could be, as it increases each year in line with inflation. There are also different discount levels for houses and flats, depending on how long you have been a tenant for: 


—> 3-5 years – 35% discount 

—> 6 years+ – an increase of 1% per year, up to a maximum of 70% or the cash maximum available, whichever is lower 


—> 3-5 years – 50% discount 

—> 6 years+ – an increase of 2% per year, up to a maximum of 70% or the cash maximum available, whichever is lower 

How do you apply for the Right to Buy? 

You’ll need to fill in an RTB1 Right to Buy application form and send it to your landlord. 

Your landlord must reply within four weeks. If they refuse to let you purchase the property, then they must explain their decision. 

If the answer is ‘yes,’ they’ll then need to send you an offer letter called a Section 125 Notice. This will set out the terms and conditions of the sale and will include: 

  1. A description of the property 
  1. The purchase price after discount 
  1. An estimate of service charges for the first five years if you’re buying a flat or leasehold house 
  1. Any structural defects the landlord knows about 

Here at Mortgagez, our team of fully qualified mortgage advisers are on hand to help you every step of the way in obtaining a new mortgage and our service won’t cost you a penny when you go via our online portal.  

Visit our website today and obtain a quick quote to see how much you could save on your next mortgage. 

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I want to buy a home → Mortgagez | Instant Online Mortgage Calculator 

PLEASE NOTE: Article written 23rd May 2023. Information contained within this article is likely to change and therefore should not be relied upon or form part of any form of decision making without seeking professional advice. * 


Any guidance and/or advice contained within this document is subject to the UK regulatory regime and is therefore restricted to consumers based in the UK. Any technical or regulatory information contained within this document was correct at the time of producing it but as it may be subject to change it should not be exclusively relied upon when making a financial decision. The Financial Conduct Authority does not regulate advice on Buy to Let mortgages.  

Article written: May 2023                                                                                                        230523 MZ000272 

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