Right to Buy Discount Calculator

Working out your discount for the Right to Buy scheme can be tricky. Use our Right to Buy mortgage calculator to find out what your discount could be and what the cost of the property could be after the discount has been applied.

In this article, we’ll also explain why speaking to a broker specialising in Right to Buy mortgages can help increase your chances of approval. Use our right to buy your council house calculator now.

How to calculate your Right to Buy discount

You can use the calculator below to determine how much discount you can get when buying your council house through the Right to Buy scheme. Once you know how much discount you’re entitled to, you can use the other calculators on this page to work out your maximum borrowing and mortgage repayments.

How much can you borrow on a Right to Buy mortgage?

Usually, the most you can borrow when buying your council house is four times your income (five times with some lenders).

However, with Right to Buy, the amount you need will depend on several other factors, including what discount you are entitled to.

Some lenders will allow you to borrow 100% of the property’s discounted value, while others will only lend a percentage of it. Sometimes, lenders will allow you to borrow more than 100% of the discounted value if the funds are for home improvements.

Use our calculator below to get a rough idea of what your maximum borrowing could be.

Other factors affecting the Right to Buy discount you receive and, therefore, the total amount you might need to borrow include:

• How long you have lived in the property (minimum three years)
• Where in the UK you live
• Whether your property is a house or a flat (discounts differ)

How a broker can help secure the mortgage you need

The Right to Buy scheme can be quite a complex, drawn-out process. But, as long as you can navigate it successfully, you can secure your dream of owning your home rather than renting it.

This is where a specialist broker can help. We work with brokers who have access to every mortgage deal in the UK and are experienced in securing the best deals on Right to Buy mortgages for people purchasing their council houses in all kinds of situations.

To chat with an expert about your situation and get a better idea of how much you can borrow and how to start planning your budget, get in touch so we can match you with a handpicked Right to Buy specialist.

How much your repayments will cost

Once you know how much you might be able to borrow, our mortgage repayment calculator will give you an indication of how much the monthly repayments on your Right to Buy mortgage are likely to be.

Try our repayments calculator below…

Remember, though, that these calculations are just a guide. You should speak to a broker for a more detailed idea of your borrowing options.

Factors that will determine – both directly and indirectly – your borrowing capacity, the rate you might be offered and how much your repayments will be include:

• The property’s value
• Your income and expenses
• Your credit history
• Whether you have a deposit in addition to your discount
• Age
• Employment type
• Property type (some lenders will not approve a mortgage for a non-standard construction)
• Which lender you apply to

In general, the value of the property, your annual income/outgoings, and your deposit will have a direct impact. Other factors, such as having a poor credit history or inconsistent employment record, could have an indirect impact by reducing the number of lenders willing to consider your application.

A smaller pool of lenders means you’re less likely to qualify for the most competitive interest rates and, as a result, affects your monthly mortgage repayments.

Are Right to Buy mortgages calculated differently around the UK?

The discount you’re entitled to is higher in London. While it’s up to 70% of the property’s value or £96,000 outside of the capital, it goes up to £127,000 in London.

For Right to Buy in Northern Ireland, discounts start at 20% after 5 years and go up by 2% per year to a maximum of 60% or £24,000.

Right to Buy in Wales and Scotland ended in 2016 and 2019, respectively.

How Online Mortgage Advisor can help

Our unique broker matching service will ensure that you are paired with a broker who specialises in helping people like you secure the best Right to Buy mortgage available.

Whether you’re self-employed, have bad credit, or just don’t know where to start, after a brief assessment, we’ll connect you with someone who understands your situation and knows how to maximise your borrowing potential.

To get matched with your ideal Right to Buy mortgage specialist, call 0330 818 7026 or enquire online.