Getting a Right to Buy Mortgage with an Adverse Credit History

Bad credit or a low credit score can make mortgage applications extremely stressful. Visit the Revolution Finance Brokers guide to Right to Buy and bad credit to understand all the crucial information about eligibility criteria and indicative monthly repayment costs.

About your mortgage

Error: Yearly income income must be between £1 and £10,000,000.

Error: Regular bonus must be between £1 and £10,000,000.

Based on your yearly income, you may be able to borrow:


Most lenders will let you borrow 4.5 times your annual salary so, as long as you have a standard 10% deposit, you should be able to borrow this much.


Depending on your personal circumstances, some lenders may let you borrow 5 times your salary.


Lenders usually cap the amount they lend at 5.5 times your salary, so it’s unlikely you’ll be able to borrow more than this.

This calculator is an estimation of how much you could borrow. If you’re ready to take out a mortgage, speak to a Revolution brokers to see what options are available.

Getting a Right to Buy Mortgage with an Adverse Credit History

The Revolution team receives numerous enquiries from applicants who have been rejected for a mortgage due to adverse credit issues - and sometimes, from multiple lenders.

Here we'll look at how Right to Buy mortgage lending works if you have a bad credit history, and what to expect from your lender.

For more support with securing a Right to Buy mortgage with bad credit, give us a call on 0330 304 3040, or email at

Does Bad Credit Mean I Cannot Get a Right to Buy Mortgage?

Not necessarily; it all depends on the circumstances, what sort of bad credit you've experienced, and how long ago it occurred.

Below are some of the most common adverse credit issues, and what they might mean for a Right to Buy application:

  • Low Credit Score - high street lenders are likely to turn down applications for Right to Buy mortgages if you have a low credit score. More specialist lenders take a more flexible approach and will check your credit file for issues, rather than relying on the scoring system.
  • Late Payments - if you have one or two late payments over three years ago, most lenders can consider your application.
  • Defaults - where defaults have occurred in the last six years, many high street banks will reject a Right to Buy application. Others will lend to you if defaults happened over a year ago, and others will consider situations where defaults have been registered recently.
  • CCJs - CCJs are usually considered more severe than defaults - although the right lender to apply to depends on how recently the adverse credit occurred.
  • Arrears - you are more likely to be approved for Right to Buy if your arrears were over three years ago. Some lenders will support you with arrears within the last year.
  • Debt Management Plans (DMPs) - lenders will look at when a DMP was registered, and when it was settled. If you have a DMP within the last six years, the majority of high street banks cannot lend. Niche lenders can consider Right to Buy applicants with a DMP registered even within the last few weeks, provided you can prove you are keeping up with the repayments.
  • Individual Voluntary Arrangements (IVAs) - as with DMPs, the criteria for Right to Buy applicants with an IVA on their credit history depends on whether the IVS has been settled, when it occurred, and what value was involved.
  • Bankruptcies - mainstream lenders rarely approve a mortgage for anybody with any bankruptcy history. Specialists would accept an application if the bankruptcy were discharged over three, or six years ago. A small number of bad credit lenders may decide to lend even if the bankruptcy was discharged very recently.
  • Repossessions - when the repossession was registered will make a difference. High street banks are mostly unable to lend where there is repossession history. Other lenders will decide based on how long ago the incident occurred; usually within three years, over three years, or over six years ago.

If you have bad credit issues and are keen to secure competitive Right to Buy lending, you must consult an independent broker. The Revolution team can recommend the right lenders to apply to, and ensure you don't compound your credit history issues by making multiple rejected applications.

Give us a call on 0330 304 3040, or drop us a message to

What Deposit do I need for a Bad Credit Right to Buy Mortgage?

This all depends on how much of a discount your Right to Buy scheme offers, and how much the property is worth.

If you do not have a deposit, it can still be possible to get Right to Buy lending, even with a bad credit history, if the amount of equity offers sufficient security for the lender.

However, the larger the deposit available, the less you need to borrow, the lower the interest rates you will pay, and the easier it will be to have a mortgage application approved.

Your lender will also consider where your Right to Buy deposit comes from, as each has different rules about what sources of income they can accept as a deposit:

  • Common deposit sources for Right to Buy mortgages include personal savings, the sale of a property, or other assets, or an inheritance.
  • Less common sources that are accepted by some lenders include gifts deposits from your family, and overseas savings (depending on traceability).
  • Less likely deposit sources that many lenders will refuse include gifted deposits from distant family, employers or friends, gambling proceeds, personal loans, and cash.

Is There a Maximum I Can Borrow on a Right to Buy Mortgage?

There is, yes, and lenders will need to know what you earn, what sort of employment you have, and details of any other debts that will impact your affordability.

If you have a low income, you will usually be able to borrow up to three or four times your yearly income. Some lenders offer up to five or six times your salary, although this depends on complying with their other eligibility criteria.

Right to Buy self-employed applicants usually need to provide at least three years of accounts and tax returns for their lender to calculate an average income as the basis for their maximum mortgage offer.

Specialist lenders can accept as little as one year of accounts, although a higher deposit is required where there is a higher risk factor.

What Other Eligibility Criteria Impact my Right to Buy Mortgage Application?

The key criteria are around income and affordability, but lenders will also consider other circumstances, which might restrict whether they can borrow and, if so, how much:

  • Non-standard properties - such as high-rise flats - can be more complex, and usually need a specialist lender to offer a Right to Buy mortgage.
  • Later life applicants also usually require a niche lender, as many high street banks place upper age limits on who they will offer a Right to Buy mortgage to.

Professional Advice with UK Right to Buy Mortgages with Bad Credit

If you have bad credit issues, it can be frustrating to be turned down by multiple banks, or feel that there isn't a way to use the Right to Buy Scheme to purchase your home.

Never fear; there are plenty of specialist lenders out there offering a wide range of products designed to make it easier to get onto the property ladder. Give the mortgage advisors team a call on 0330 304 3040, or email us at, and we'll get the application process started.

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FCA disclaimer

The content included in our articles, blogs, web pages and news publications is based on information accurate at the time of writing. Note that policies and criteria can change regularly throughout the UK mortgage lending market, and it remains essential to contact the consultation team to receive up to date guidance. The information included on the Revolution Brokers site is not bespoke to any circumstances or individual application scenarios and therefore is not intended to be used as financial advice. The content we share is designed to be informative and helpful but cannot be relied upon to provide individual advice relevant to your mortgage requirements. All Revolution team members are fully qualified, trained and experienced to provide mortgage advice of an independent nature. We collaborate with lenders and providers who are regulated, authorised and registered with the Financial Conduct Authority (FCA). Should you require specific mortgage borrowing types, some products such as buy to let mortgages may not be FCA regulated. The Revolution team can provide further information about regulated and unregulated lending as required. Please remember that a mortgage is a debt which is secured against your home or property. Your home can be at risk of repossession if you do not keep up with the repayments or encounter any other difficulties in managing your mortgage borrowing responsibly. This also applies to any remortgage or home loan secured against your property, including equity release products.

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