Right to Buy mortgage calculator

If you’re buying your council home through the Right to Buy scheme, the discount you receive can make a meaningful difference to the purchase price—and therefore to the mortgage you may need.

This page brings together calculator-style tools to help you estimate:

• Your Right to Buy discount (based on the information you enter)
• How much you might be able to borrow using a typical income-multiple approach
• What repayments could look like once you have an indicative loan amount

These figures are for planning and comparison only. The actual discount and mortgage offer will depend on your circumstances and the lender’s criteria.

How to calculate your Right to Buy discount

Your Right to Buy discount is calculated from the purchase price and your tenancy history, with rules that can vary depending on where the property is.

To estimate your discount, you’ll typically need to consider:

• Property type (house or flat)
• Purchase price
• How long you’ve been a public sector tenant
• Whether you’re buying in London (discount rules differ)

Once you have an estimated discount percentage/value, you can work out the discounted purchase price—which is the starting point for assessing the mortgage amount you may need.

Right to Buy discount calculator (estimate)

Use the calculator below to estimate your potential discount.

Inputs

• Property type: select house or flat
• Purchase price: enter the amount in £
• How long have you been a public sector tenant?
• Buying in London: select yes/no

Outputs (indicative)

• Right to Buy discount percentage
• Right to Buy discount value
• Cost of the property after Right to Buy discount

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

When you apply for a mortgage, lenders generally consider how much you can afford based on your income and outgoings. While the exact approach varies, a common starting point is that maximum borrowing is often linked to income multiples.

For many borrowers, the “headline” affordability range is often described as around four times your income, with some lenders potentially allowing higher multiples in certain circumstances.

With Right to Buy, the mortgage amount you need is also influenced by the discounted purchase price and whether the lender will fund the purchase in full or only up to a certain proportion.

Things that can affect the mortgage amount you may need

• Whether you have a deposit in addition to your Right to Buy discount
• The discounted value of the property you’re buying
• Lender policy on how much of the purchase price they will lend
• Whether funds are needed for home improvements (in some cases, this can change what lenders will consider)

Mortgage affordability calculator (estimate)

Use the calculator below to get an indicative view of borrowing capacity based on a typical income-multiple approach.

Inputs

• Total household income (yearly, before tax)

Include all income types you receive, such as:

• salary, bonus, overtime
• self-employed income
• pensions
• maintenance
• benefits (where applicable)

Even if you’ve been told certain income won’t count, it can still be worth including it for an initial estimate, because lender treatment can vary.

Output (indicative)

• Potential borrowing capacity

Illustrative only. Lending policies change and affordability is assessed using more than income alone.

Factors that can change your Right to Buy discount

Your discount isn’t just about the property price. It can also depend on details of your tenancy and the property.

Common factors include:

• Minimum tenancy period (for example, a minimum period is usually required)
• Where in the UK the property is located (London rules can be more generous)
• Property type (discounts can differ between houses and flats)

How much your repayments could cost

Once you have an indicative loan amount, you can estimate monthly payments using a mortgage repayment calculator.

Mortgage repayment calculator (estimate)

This tool uses the inputs below to show a repayment figure.

Inputs

• Loan amount: the amount you expect to borrow
• Mortgage rate: enter the interest rate you want to model
• Mortgage term: choose the term length you want to test

Output (indicative)

• Estimated monthly repayments

Interest-only note

Right to Buy mortgages are sometimes structured as interest-only. With an interest-only mortgage, your monthly payments typically cover the interest only, while the original loan amount is repaid separately at the end of the term.

This can mean lower monthly payments than a repayment mortgage, but it also requires a plan for repaying the capital.

What influences borrowing and repayments in practice?

Even with a discount, the mortgage you can get—and the repayments you’ll pay—depend on more than the calculator inputs.

Common direct and indirect factors include:

• Property value and whether it meets lender requirements
• Your income and regular outgoings
• Credit history
• Deposit size (including how much of the purchase price is covered by the discount)
• Age and the term you can take
• Employment type and stability of income
• Property type and construction (some lenders have restrictions)
• Which lender you apply with

A smaller lender selection can affect the range of rates and terms available to you.

Right to Buy discount rules across the UK (high level)

Discount levels can vary by location.

• London: discounts are typically higher than outside London
• Northern Ireland: discount rules differ from Great Britain
• Wales and Scotland: the Right to Buy scheme has different timelines and may not be available in the same way as in England

Because rules can change and eligibility can depend on your exact circumstances, it’s important to treat any calculator result as an estimate rather than a confirmation.

Using these calculators together

A practical way to approach your planning is:

1. Estimate your Right to Buy discount
2. Use the discounted purchase price to understand the likely mortgage amount you may need
3. Model repayments using different interest rates and term lengths to see how sensitive your budget could be

Important notes

• Calculator results are illustrative and based on the information you enter.
• The actual discount and mortgage offer depend on your circumstances, the property, and the lender’s underwriting.
• Repayment figures can change if the mortgage structure, term, or interest rate differs from what you model.