If you’re buying your council home through Right to Buy, the discount can sometimes act like your deposit, which means you might not need to save a big cash deposit. But “no deposit” does not mean “guaranteed”. Lenders still check affordability, credit history, the property type, and whether the valuation stacks up. The fastest way to avoid getting messed about is to get the numbers checked properly before you apply, because the wrong lender or the wrong application order can cost you months. Your home may be repossessed if you do not keep up repayments on your mortgage.
Jan 12, 2026
Right to Buy lets most council tenants buy their council home at a discount. In England, you can usually apply if it’s your main home, it’s self-contained, you’re a secure tenant, and you’ve had a public sector landlord for 3 years (it does not have to be continuous).
There are different rules depending on where you live (Wales, Scotland, Northern Ireland).
Most people aren’t really asking for a magical mortgage with no deposit.
They mean one of these:
Here’s the reality.
Sometimes, yes. In practice, lenders look at loan-to-value (LTV) based on what they accept as the “deposit”.
If your home is valued at £250,000 and you get a £75,000 discount, you’re effectively buying for £175,000. Some lenders may treat that discount like equity, which can reduce the LTV and make the case work without a big cash deposit.
But it depends on:
This is where people get burned. They read one headline, assume it’s automatic, then waste weeks applying the wrong way round.
If you’re renting from a housing association rather than the council, it’s also worth checking whether Right to Buy actually applies to you. In some cases, tenants fall under a different scheme altogether, which comes with different discounts and mortgage rules. We explain the difference between Right to Buy and Right to Acquire here.
Your discount depends on things like whether the property is a house or flat and how long you’ve been a tenant, and it’s capped.
Don’t guess your discount from TikTok or a mate at work. Use the official guidance and get your landlord’s paperwork in order early, because the mortgage side often moves faster than the council admin side.
Even if the discount covers the “deposit” piece, lenders still want proof you can afford it and that you’re a good risk.
Common reasons a Right to Buy “no cash deposit” plan fails:
This is why “rate hunting” yourself can backfire. Right to Buy cases are about strategy, not just a cheap rate.
Some lenders are more flexible than others when it comes to using the Right to Buy discount as a deposit. Barclays, in particular, is often mentioned in connection with zero deposit mortgages, but the reality is more nuanced. We’ve broken down exactly how Barclays’ approach works and who it actually applies to in this detailed guide.
Most sites explain the scheme. They don’t explain how to get the mortgage over the line when it’s tight.
Here’s what we do differently at Mortgage Brokers Near Me:
We calculate borrowing based on your income, commitments, and the likely valuation position. If it’s borderline, we tell you straight.
Not every lender treats the discount the same way. Not every lender likes every property type. That mismatch is where time gets wasted.
Right to Buy purchases come with extra admin and timelines. Underwriters want clarity. If your documents are messy, they stall you.
Even when the mortgage offer is fine, council delays can drag. We push the right parts at the right time so you’re not stuck waiting with no plan.
You need the council process moving early. Eligibility basics are on GOV.UK.
This includes:
Not a random calculator. A real affordability run including commitments and credit profile.
Right to Buy outcomes depend heavily on:
Right to Buy cases can be smooth if they’re packaged properly. They become a nightmare when lenders have to “pull” information out of you.
Sometimes, but “no savings” is still risky because you’ll usually need money for legal fees, searches, moving costs, and occasionally repairs. The discount can help on the deposit side, but you still need to be financially ready.
No. Some lenders treat it as equity for LTV purposes, others have tighter rules depending on the property and your profile. This is lender-specific and changes over time.
Right to Buy gives you a discount, but lenders still look at deposit/equity and affordability. GOV.UK confirms Right to Buy is buying at a discount, but the mortgage side depends on lender criteria.
Sometimes a deal can be structured close to that if the lender accepts the discount as equity, but it’s not automatic. Affordability and valuation still matter.
It varies. High street lenders, building societies, and specialist lenders all have different rules. The “best” lender is the one whose criteria matches your situation and property.
There isn’t one universal score. Lenders care about the detail: missed payments, defaults, CCJs, how recently issues happened, and current debt levels.
The mortgage offer can be quick if the application is clean. The bigger delays often come from council timelines and legal work.
Not always. Rules vary by nation and scheme. GOV.UK points to different rules for Wales, Scotland, and Northern Ireland.
If you’re trying to buy through Right to Buy and you’re hoping the discount means you don’t need a big deposit, get a proper check first.
Want to know if your Right to Buy discount can work as your deposit, and what you can realistically borrow?
Speak to Mortgage Brokers Near Me and we’ll run through your numbers, tell you where you stand, and map the cleanest route to approval.
Your home may be repossessed if you do not keep up repayments on your mortgage.
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High value mortgages require more than a strong income. Lenders manually assess affordability, income sources, assets, and risk, especially for loans above £1 million. Working with the right broker early can make the difference between smooth approval and weeks of delays, reduced offers, or outright decline.
Read ArticleIf you’re buying, moving, or remortgaging, speak with a MBNM adviser and get clear guidance on what’s realistically available to you, before you commit to anything.
Mortgage Brokers Near Me LTD is an Appointed Representative of The Right Mortgage LTD which is authorised and regulated by the Financial Conduct Authority. The guidance and/or information contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK. The Financial Conduct Authority does not regulate Will Writing and some forms of Trusts and Buy to Lets. A fee may be charged for mortgage advice. The exact amount will depend on your circumstances.
Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.
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