See if we can help you get a mortgage Get a FREE mortgage quote

Right to buy mortgages with bad credit

If you're a housing association or council tenant wanting to buy your own home with a mortgage under the right to buy scheme, you've come to the right place. As mortgage brokers we have access to lenders who offer right to buy mortgages including lenders who take  sympathetic stance towards  people who have non standard or complex backgrounds such as poor credit history. So if you want to get a right to buy mortgage contact us to get a free no obligation quotation. A specialist mortgage broker will appraise your circumstances and determine where best to place your mortgage application.


The 1980 Housing Act has enabled millions of people to buy their own home from the local council. The policy proved to be a huge vote winner, instantly popular with thousands of tenants across the country. Michael Heseltine was the government minister responsible for the scheme and at the time commented “There is in this country a deeply ingrained desire for home ownership. The government believe that this spirit should be fostered.
“It reflects the wishes of the people, ensures the wide spread of wealth through society, encourages a personal desire to improve and modernise one’s own home, enables parents to accrue wealth for their children and stimulates the attitudes of independence and self-reliance that are the bedrock of a free society.”

Throughout the 1980s and 90s millions of tenants swapped renting with home ownership. In 1982/83 167,123 council owned houses and flats purchased by sitting tenants but by the end of the last decade the numbers were in significant decline as governments of the time were less enthusiastic towards the policy. In 2020/21 7,164 properties were sold under Right to Buy schemes.


In recent years there has been a resurgence as tweaks were made to the criteria under the David Cameron premiership. In particular the opportunity to purchase was extended to tenants living in housing association properties and length of time tenants need to be in occupation before making an application was slashed from five years to three years. Remarking on the relaunch of right to buy, Housing Minister Brandon Lewis said the government "makes no apology for helping people into homeownership".

"Our voluntary agreement with housing associations will mean 1.3 million tenants will have the chance to own their own home, while every home sold will be replaced with a new affordable property”.

Criteria / deposit

You have to be living in your local authority or housing association flat or house for a period of three years. When purchasing a property discounts of just over £77,900, are now available for council housing sales in England, increasing to a massive £103,900 in London. The level of discount is linked to your tenancy / the number of years you have lived at the property.

Right to buy mortgage lenders will convert the discount you are entitled to into a deposit. So if a property is valued at £200,000 and you have a discount of £60,000, you will need to borrow £140,000 which is 70% of the property value.

Are there any right to buy lenders who allow bad credit?

Not too long ago having a low credit score due to bad credit such as CCJs, defaults, IVAs, bankruptcies, missed payments or insufficient borrowing history would significantly impede your ability to get a right to buy mortgage. There are now a few lenders who have entered the market who are more willing to consider applications from people who have adverse credit. Contact us today to see how we can help. 

Do you have complex needs?
Self employed or history of credit problems?
Contact us