The short answer
Can I get a mortgage to buy my council home?
Potentially. Right to Buy allows eligible council tenants in England to buy the home they already rent at a discount. Current government guidance says the home must be the tenant's only or main home and self-contained, the applicant must be a secure tenant, and they must usually have had a public-sector landlord for at least three years. The council decides scheme eligibility; it does not approve the mortgage.1
A mortgage lender separately assesses income, spending, credit commitments, the property and its own Right to Buy criteria. Some lenders may treat the council discount as the deposit, while others may require money from the buyer, so this should be established before relying on the discount as the complete contribution.2
If the council agrees to sell, its formal offer states the proposed price, discount and property details. For a flat or maisonette it also includes estimated service charges for the first five years. The offer, mortgage, independent survey and legal advice should be considered together before proceeding.32
Step 1 · Separate the approvals
Council eligibility is not mortgage approval
The council determines whether the tenant and property qualify and what discount applies. A mortgage lender independently assesses the applicant, property and proposed loan. Both routes must work before completion.
Right to Buy eligibility and offer
- 01 Tenant and property eligibility
- 02 Market value and eligible discount
- 03 Formal landlord offer
Mortgage affordability and security
- 01 Income, spending and credit
- 02 Deposit treatment and property
- 03 Mortgage offer and conditions
Step 2 · Understand the formal offer
Connect the valuation, discount and money still required
Read the council's offer alongside the mortgage illustration, legal advice, survey and cash budget. The discounted price is only one part of the cost of becoming the owner.
Lender-assessed borrowing
Affordability, term, property and lender criteria still apply.
Confirm what cash is still needed
Any lender contribution, legal work, survey, fees, repairs and reserve.
Step 3 · Pressure-test the purchase
When a Right to Buy mortgage may be worth exploring
The discount can make a purchase possible, but it does not remove mortgage affordability, property condition or the long-term costs of ownership.
- The council has confirmed, or is likely to confirm, that both tenant and property meet the current Right to Buy rules.
- The mortgage and household costs remain affordable without relying on the current rent as a direct comparison.
- The property is acceptable to a suitable lender and its condition has been independently investigated.
- The buyer understands the lease, service charges, major works and resale conditions where applicable.
Step 4 · Prepare the case
Documents that connect council and lender
- Right to Buy application and council correspondence
- Section 125 offer notice when issued
- Tenancy history and details of all proposed applicants
- Income, bank statements and existing credit commitments
- Lease and service-charge information for a flat or maisonette
- Evidence of savings for fees, repairs and any lender-required contribution
Step 5 · Progress the purchase
From eligibility check to completion
- 01
Check current eligibility
Confirm the rules with the council or landlord and submit the official Right to Buy application where appropriate.
- 02
Review the council offer
Check the market value, discount, purchase price, property description, structural information and any five-year service-charge estimates.
- 03
Build the mortgage case
Assess affordability, credit commitments, lender deposit treatment, property criteria and cash needed for fees or repairs.
- 04
Complete independent checks
The solicitor reviews the title or lease and restrictions while an appropriate survey considers condition beyond the lender's valuation.
- 05
Accept and complete
Proceed only when the council sale, mortgage offer, legal work, ownership budget and completion funds are aligned.
Step 6 · Plan for ownership
The rent stops; the owner’s responsibilities begin
Compare the future mortgage, insurance, repairs and leasehold obligations with the rights and costs of remaining a tenant. For flats, read the service-charge estimates and ask about longer-term major works.
Council eligibility
Tenancy history, tenant status, the property and previous public subsidy affect whether the council can approve the application and discount.
Mortgage affordability
The lender assesses income, spending, debts, credit history, term and future payment resilience independently of the council.
Property suitability
Construction, condition, value, lease, location and any resale restriction can affect lender appetite and future marketability.
Ownership costs
Repairs, insurance, mortgage payments and, for leasehold homes, service charges and major works can replace or add to tenant costs.
Illustrative scenario
A secure council tenant receives a discounted offer for their flat
The discount makes the stated purchase price lower than the council's market value, but the mortgage and ownership decision still depend on lender policy, the lease and the complete household budget.
- 1The council's offer confirms the value, discount, purchase price and estimated service charges for the first five years.
- 2The adviser checks whether suitable lenders accept the discount as deposit equity or require an additional cash contribution.
- 3The solicitor reviews the lease, resale conditions and responsibility for building costs.
- 4An independent survey and cash reserve address condition and costs that are not covered by the lender valuation.
Alternatives
Other routes to compare
Continue renting
Remaining a secure tenant may preserve tenancy rights and leave certain repair obligations with the landlord. Compare those rights with ownership before applying.
Right to Acquire
Some eligible housing-association tenants in England may be able to purchase their current home through a different discounted scheme.
Other affordable-home routes
First Homes and shared ownership work differently and may suit an eligible buyer who wants or needs to move rather than purchase the current property.
FAQs
Right to Buy questions
Some mortgage lenders may treat the discount as deposit equity, while others may require an additional cash contribution. The lender's current policy and the complete case determine the answer.
Sources
Sources used for this guide
- 1Right to Buy: buying your council home
GOV.UK · Current England eligibility conditions, joint applications and Preserved Right to Buy overview.
- 2Your right to buy your home: a guide
Ministry of Housing, Communities and Local Government · Mortgage deposit treatment, buying costs, surveys, leasehold responsibilities and decision guidance.
- 3Right to Buy: your landlord's offer
GOV.UK · Contents of the landlord's offer, response period, service-charge estimates and valuation challenge process.
- 4Right to Buy discounts
GOV.UK · How the discount depends on property type, value, location, tenancy history, caps and landlord expenditure.
- 5Selling your Right to Buy home
GOV.UK · Five-year discount repayment rules, ten-year first-refusal requirement and potential rural restrictions.
- 6Affordable home ownership schemes
GOV.UK · The availability of different affordable-home ownership routes and jurisdiction-specific schemes.
Reviewed by Charles Frank Finance Limited on 1 August 2026. Lender criteria can change independently of this guide.