Right to Buy Mortgages – Buy Your Council Home with Expert Help

Many council houses in the UK have been purchased by long-term tenants through the Right to Buy scheme, turning former rental properties into owned homes. The Right to Buy scheme is a government policy introduced in 1980 that gives qualifying council tenants the chance to buy their homes at a discounted price.

In simple terms, if you are renting a council house (or sometimes a housing association property with a preserved right), you might be able to buy your council home for less than its market value. This program has helped thousands of people become homeowners – often without needing a large upfront deposit.

Drummonds Finance Group is here to guide you through every step of the Right to Buy process. As an expert Right to Buy mortgage broker, we combine professional expertise with a friendly approach. In this comprehensive guide, we’ll explain what the Right to Buy scheme is, who qualifies, its benefits and drawbacks, and how the application process works. You’ll also learn how Drummonds Finance Group supports clients in Oxford, Bicester, and across the nation in securing the right mortgage to buy your council home.

What Is the Right to Buy Scheme?

The Right to Buy scheme is a UK government initiative that allows eligible public-sector tenants to purchase the home they rent from the local council (and in some cases, housing association) at a significant discount. It was launched in 1980 as part of a drive to increase home ownership. The policy applies mainly in England (Scotland and Wales have since ended their versions of Right to Buy, and Northern Ireland has a similar but separate scheme). The goal is to give long-term tenants a chance to own the property they live in, making homeownership accessible and rewarding loyalty in council housing.

Under Right to Buy, the discount you receive on the purchase price depends on how long you’ve been a tenant and whether you’re buying a house or a flat. Long-term tenants can get substantial discounts (potentially tens of thousands of pounds off the market value). For example, a tenant of many years might be eligible for a 70% discount, though there are regional maximum caps in place. (As of recent changes, these regional caps vary; for instance, outside London, the maximum discount was around £102,400 for applications before late 2024, but newer rules have lowered regional caps.) The key point is that Right to Buy often makes purchasing affordable – you might buy your council home for much less than its open-market price.

It’s important to note that while the scheme offers a great opportunity, the rules and availability differ by region. In England, it remains active and popular. By contrast, Right to Buy in Oxfordshire and elsewhere in England continues, but if you’re a tenant in Scotland or Wales, the scheme is no longer available there. Always check the latest status if you’re outside England.

Who Qualifies for Right to Buy?

Not every tenant automatically qualifies for the Right to Buy scheme – there are specific eligibility criteria. Generally, you can apply to buy your council home under Right to Buy if you meet the following conditions

Secure Council Tenant: You must be a secure tenant of a council (or a housing association with a preserved right). In practice, this means the property is your main or only home, and you have a long-term tenancy (not a temporary placement).
Length of Tenancy: You need at least 3 years of public sector tenancy. This can be with a council, housing association, or certain other public sector landlords. The 3 years don’t have to be continuous; for example, if you had a council tenancy years ago that can count towards the total. Longer tenancy often means a bigger discount.
The Home is Self-Contained: The property should be self-contained, meaning you don’t share rooms like a kitchen or bathroom with people outside your household. Most houses and flats qualify, but, for instance, a bedsit with shared facilities might not.
The Home is Your Only or Main Residence: You can’t use Right to Buy on a property you sublet entirely or don’t live in – it has to be your primary home.

Benefits of Right to Buy

Taking up your Right to Buy can offer numerous benefits, both financially and personally. Here are some key advantages of buying your council home:

Significant Discount – Instant Equity: The headline benefit is the purchase discount. You’re buying below market value, which means you gain instant equity in the property. For example, if your home is worth £200,000 on the open market and you qualify for a 50% discount, you’d only pay £100,000. That £100k difference is equity you “own” in the home from day one.
No Large Deposit Needed: Many Right to Buy purchasers don’t need a big deposit. The discount itself can serve as a substitute for a cash deposit. In fact, some lenders even offer Right to Buy mortgages that cover 100% of the discounted purchase price

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, so you might not need any savings at all to get on the property ladder.
Homeownership and Control: As a homeowner, you gain freedom and control over your property. You can decorate, renovate, or extend (subject to planning) as you wish, without needing permission from a council landlord. Your home truly becomes your own.
Long-Term Investment: Buying your home is an investment in your future. Instead of paying rent with no return, your monthly payments go towards owning an asset. Over time, if property values rise, you benefit from any increase. You can potentially sell for a profit later (keeping in mind some restrictions in the first few years – see drawbacks section).
Stability and Security: Owning can provide more stability. You won’t be subject to changes in council housing policy or rent increases – you’ll have the security of knowing the home is yours as long as you keep up with your mortgage. This stability can be great for family planning and putting down roots in your community. It also means you won’t have to move out; you’re buying the place you already call home, avoiding the disruption of relocating.
Financial Benefits for the Future: You may find that mortgage payments are similar to (or sometimes lower than) your previous rent, especially with low interest rates. In the long term, once the mortgage is paid off, you’ll live rent-free aside from maintenance and any leasehold fees if applicable. Additionally, you have an asset that can be passed on to family or leveraged for financial needs in retirement.

These benefits have made Right to Buy a life-changing opportunity for many council tenants. Drummonds Finance Group has helped clients achieve these advantages by assisting them in purchasing their homes through the scheme.

Potential Drawbacks and Considerations

While Right to Buy has clear benefits, it’s important to approach it with a balanced view. Buying your home is a big decision, and there are some potential drawbacks and responsibilities to keep in mind:

Responsibility for Maintenance and Repairs: As a tenant, the council or landlord is responsible for fixing structural issues, heating systems, and other major repairs. Once you become the homeowner, all maintenance and repair costs fall on you. From a leaky roof to a broken boiler, you’ll need to budget for upkeep. This is a new expense that renters don’t directly pay (though it’s reflected in rent).
Mortgage Payments and Financial Commitment: When you buy, you swap rent for a mortgage. You must be confident you can afford the mortgage payments now and in the future. Unlike rent which might be subsidized or predictable, mortgages can vary with interest rates (if not fixed) and usually last 25+ years. You’ll also pay interest to the lender, so the cost of the home over time can be higher than the purchase price. Missing mortgage payments can lead to serious consequences, including potential repossession of your home. It’s crucial to borrow within your means and plan for the long term.
Service Charges and Leasehold Considerations: If you’re buying a council flat (apartment) or maisonette, you will likely purchase a leasehold interest. This means while you own your flat, the building is maintained by the freeholder (often the council or an association). You’ll have to pay ongoing service charges for building maintenance, common areas, elevators, etc. These fees can be significant and can increase over time. Even buyers of houses will need to consider buildings insurance and other ownership costs that were previously included in rent.
Discount Clawback If You Sell Early: Right to Buy encourages long-term homeownership, not quick flips. If you sell the property within the first 5 years of buying it, you will have to repay some or all of the discount you received. The amount of repayment is on a sliding scale – 100% of the discount if you sell in the first year, 80% in the second year, and so on (reducing by 20% each year). After five years, you keep the entire discount benefit. Additionally, if you decide to sell within 10 years, you must first offer the property back to the local council or housing association (they have right of first refusal). This is to prevent immediate resale to private buyers and to give social landlords a chance to regain the property for housing need. These rules don’t stop you from selling; they just ensure the scheme’s benefits aren’t abused and that you repay a fair portion of the discount if you didn’t hold the home long.
Loss of Rental Security Net: Once you buy, you’re no longer a council tenant. This means you give up the security of council housing (for example, subsidized rent or housing benefit support, and the guarantee of somewhere to live with minimal conditions). If your financial situation worsens in the future, you generally cannot revert to being a council tenant easily. You would have to seek housing on the open market or apply for assistance like any other homeowner. In short, you’re taking on the risks of homeownership along with the benefits.
Market Risks: While homeownership is an investment, it’s not without risk. Property values can go down as well as up. If house prices were to fall significantly, you could end up in negative equity (owing more on your mortgage than the property is worth). That would be a problem only if you needed to sell during that time. Also, if interest rates rise, your mortgage payments could increase on variable-rate deals. These are general homeownership risks to consider.
Impact on Future Housing Stock: This last point isn’t a personal drawback, but it’s worth noting the broader context. Homes sold under Right to Buy reduce the stock of council housing available. Many people support the policy for empowering tenants, while others criticize it for contributing to a shortage of affordable homes for new tenants. As a buyer, you’re benefiting from the policy, but it’s good to be aware of the societal discussion. Regardless, this shouldn’t deter you if purchasing is right for your situation, but it highlights why the scheme has some conditions attached (like the resale restrictions).

Before proceeding, make sure you’ve weighed the pros and cons. At Drummonds Finance Group, we want our clients to succeed as homeowners long-term. In our free consultation, we’ll discuss these considerations to ensure you’re making an informed decision. We can also connect you with independent legal advice if needed for matters like leasehold terms or resale rules. Owning your home is wonderful, but it comes with new responsibilities – and we’re here to help you understand them.

How Does the Right to Buy Process Work?

If you decide to move forward, you’ll need to navigate both the Right to Buy application with your landlord and the mortgage application with a lender. Here’s a step-by-step look at how the process typically works from tenant to homeowner:

Check Eligibility and Apply to the Council: First, verify that you meet the Right to Buy criteria (as outlined above). You then need to complete an application form (RTB1), which you can get from your council’s website or office. Fill in details about your tenancy and property. Include anyone who is applying with you (joint purchasers). Submit this form to your landlord (the council or housing association). It’s wise to send it via recorded delivery or get a receipt so you have proof of when it was sent. After submission, the landlord will review your eligibility. By law, the council typically must respond with a decision within 4 weeks (or 8 weeks if you’ve been a tenant for under 3 years). This initial response will either admit or deny your Right to Buy. If denied (for example, if your home is designated for the elderly or other exemptions), they must state the reason. You have the right to appeal certain denials. But assuming all is well, you’ll move to the next stage.
Receive an Offer (Section 125 Notice): If your application is approved, the landlord will send you a Section 125 offer notice. This is essentially the sale offer and will include a lot of important information. It will state the valuation of your property, the discount you’re entitled to, and the price you’ll pay after the discount. It also details the terms of the sale and property specifics. For leasehold properties (flats), it will estimate service charges for the first 5 years so you know what future costs to expect. They must also disclose any known structural problems with the property. (For example, if they know the building has subsidence issues, it should be included in the offer). Getting this offer can take some time – the council has up to 8 weeks to send it for a freehold house or 12 weeks for a leasehold flat. Once you receive the offer, review it carefully. This is where you’ll find out how much you can buy your home for. If you believe the valuation is too high (thus, the price is not fair even with a discount), you have the right to request an independent valuation by a district valuer, but you must do that within a set period (usually 3 months of the offer) In most cases, the valuation is reasonable, but that option is there if needed.
Decide to Proceed and Arrange a Mortgage: After receiving the offer, you typically have 12 weeks to accept it or decline. This is “decision time.” During this period, you should be sorting out your mortgage if you plan to use one (most buyers do, unless you have savings or other financing). It’s at this stage that Drummonds Finance Group becomes especially valuable to you. As a specialist Right to Buy mortgage broker, we will help you find a suitable mortgage lender and get a mortgage agreement in principle, even as you’re evaluating the offer. Many lenders are familiar with Right to Buy purchases, and crucially, the discount can often serve as your deposit. For example, if your home is valued at £180,000 and you can buy it for £120,000 after a discount, lenders see that £60,000 discount as equity. Some lenders are willing to lend 100% of the £120,000 purchase price, meaning you don’t need to put in your own cash deposit. We will identify which lenders offer these no-deposit Right to Buy mortgages and which are likely to approve your application based on your income and credit profile. At this stage, you’ll go through the usual mortgage application process – proving your income, undergoing credit checks, etc., just like any homebuyer. (Keep in mind, if you have any adverse credit history, mainstream banks might be more cautious, but Drummonds works with a range of lenders, including those who consider applicants with past credit issues.) With our help, you’ll secure a mortgage offer that, combined with your Right to Buy discount, covers the purchase price.
Legal Conveyancing and Contract Exchange: Once you inform the council that you wish to proceed (you accept the offer) and you have your mortgage in place, the purchase moves into the conveyancing stage. You’ll need a solicitor or licensed conveyancer to handle the legal transfer of the property. If you don’t already have one, Drummonds Finance Group can recommend trusted local solicitors who are experienced with Right to Buy transactions. The solicitor will check the lease (if a flat), land registry details, and any terms attached to the sale. You’ll formally exchange contracts with the council, meaning you sign the contract to purchase and at that point are legally committed, as are they. Around this time, you’ll also finalize your mortgage deed. Before completion, you’ll need to arrange buildings insurance effective from completion day (as you become responsible for the property).
Completion – Getting the Keys to Your Home: On the agreed completion date, your lender will release the mortgage funds, your solicitor will transfer the money (purchase price minus discount) to the council, and the sale is completed. You become the official owner of the property. This is the big day where you get the keys to your council home – now your own home! The Land Registry will be updated to reflect you as the new owner (with the lender holding a charge if you have a mortgage). From this point on, you are a homeowner. Congratulations! You’ll make your first mortgage payment as scheduled (usually one month after completion or according to your lender’s timeline).
Throughout this process, there can be some back-and-forth and potential delays (for instance, councils sometimes take longer than the stipulated times, or there might be paperwork queries). However, there are mechanisms to keep things on track – for example, if the council drags its feet excessively, there are “delay notice” forms you can serve, which can even lead to a reduction in the purchase price as compensation

In our experience, though, most applications run smoothly, especially when you have professional guidance.

Drummonds Finance Group will be by your side through each step. We don’t just help with the mortgage and leave you to it; we coordinate with your solicitor, keep an eye on the council’s response times, and help ensure you don’t miss any deadlines (like replying to the offer in time). Our goal is to make the process as straightforward and stress-free as possible so you can focus on the excitement of becoming a homeowner.

Start Your Right to Buy Journey – Contact Us for a Free Consultation

Receiving the keys to your own home is an exciting milestone – Drummonds Finance Group helps you get there. Ready to take the next step toward owning your council home? Contact Drummonds Finance Group today for a free, no-obligation consultation. As Right to Buy experts and friendly mortgage advisors, we’ll happily discuss your situation, answer your questions, and outline your options.

Getting started is easy. You can call us on 0330 133 0034 to speak with one of our Right to Buy mortgage specialists. Alternatively, send us an email or fill out the contact form on our website to arrange a callback. We’ll schedule a convenient time to talk through the process and your mortgage affordability. Your initial consultation is completely free, and it will give you a clear roadmap tailored to your circumstances.

Don’t let the opportunity to buy your council home pass by without exploring it. Whether you’re in Oxford, Bicester, or anywhere in England, Drummonds Finance Group is here to help make your home ownership dream a reality. Reach out to us today, and take the first exciting step on your Right to Buy journey. Your home, your future – with Drummonds by your side, you can make it happen!