Right to Buy discount as a deposit

In England, lenders that accept Right to Buy usually let the discount count towards the deposit, because it is equity in the property from completion. Each lender still caps the loan against the market value, and the caps vary between lenders, so a small discount can leave you needing cash of your own. For applications made on or after 21 November 2024 the maximum discount is the lower of 70% of the value and a regional maximum of £16,000 to £38,000, and some or all of the discount is repayable if you sell within five years, worked out on the value of the home when you sell. Right to Buy has ended in Wales and Scotland.

Lenders that accept Right to Buy in England commonly lend up to the discounted price and measure the loan-to-value against the market value, so the discount acts like a deposit. Each lender sets its own cap against market value, and some lenders do not lend on Right to Buy. The discount also carries conditions if you sell: within five years you repay some or all of it, worked out on the value of your home when you sell it, and within 10 years you must first offer the home to your former landlord or another social landlord.

With many lenders, though not all, yes. Where a relative sells to you below market value, many lenders treat the discount as a gift of equity that can count as part or all of the deposit, as long as it is an unconditional gift with no repayment or retained interest. Some lenders still want a cash deposit from your own resources, some only recognise a discount above a minimum size, and a few do not accept family sales. The loan is usually capped at the discounted price.

A Right to Buy mortgage is a specialist residential mortgage that lets an eligible council tenant in England, or a housing association tenant with the Preserved Right to Buy, buy the home they rent under the government's Right to Buy scheme, often using the statutory discount as part or all of the deposit. Right to Buy has ended in Wales and Scotland.

Several UK banks and building societies lend on Right to Buy, including high street lenders and specialist providers, each with its own limit against market value. Published examples, each one lender's rule checked in September 2026 that can change: Atom bank lends up to 95% of full market value (90% for flats and self-employed applicants); Skipton Building Society lends up to 100% of the discounted price with the loan-to-value restricted to 90% of open market value; and Tipton and Coseley Building Society lends the lower of 100% of the discounted price or 75% of open market value. Some lenders do not lend on Right to Buy, so availability depends on the lender, the property type, your credit profile and affordability, and not every lender supports every Right to Buy scenario.