Buying your council house through the Right to Buy scheme is a goal for many renters in Bristol, but if you’ve had financial difficulties in the past, you may be wondering whether bad credit will stand in your way.

While it can be more challenging, getting a mortgage with a less-than-perfect credit history is still possible.

Right to Buy and Bad Credit – What You Need to Know

The Right to Buy scheme allows eligible council and housing association tenants to purchase their home at a discounted price.

This discount is often accepted by mortgage lenders as a substitute for a deposit, making homeownership more achievable.

If you have bad credit, though, some lenders may view you as a higher risk.

This doesn’t mean your application will be rejected outright, but it does mean that lenders will look closely at your financial history.

What Counts as Bad Credit?

Credit issues that might affect your mortgage application can include:

  • Missed or late payments on credit cards or loans
  • Defaults or arrears
  • County Court Judgements (CCJs)
  • Debt Management Plans or Individual Voluntary Arrangements (IVAs)
  • Bankruptcy or previous repossession

Lenders will take into account how recent these issues were, whether they’ve been resolved, and what your current financial habits look like.

Will I Still Need a Deposit?

In most Right to Buy cases, the discount you receive on your property is treated as a deposit. This can be enough for many lenders, especially if the discount is substantial.

If your credit issues are more serious, a lender may ask for an additional contribution on top of your Right to Buy discount.

The better your credit history, the more flexibility you’re likely to have when it comes to the deposit.

How Can I Improve My Chances?

Even with credit challenges, you can strengthen your application by:

  • Keeping on top of rent and household bills
  • Avoiding new credit applications before applying
  • Clearing or settling any outstanding debts
  • Reviewing your credit report for accuracy

Demonstrating financial responsibility now can help reassure mortgage lenders that you’re managing your money well.

Speak to a Mortgage Broker in Bristol

Right to Buy mortgages with bad credit aren’t always straightforward, and every lender has their own criteria.

A mortgage broker who understands these cases can save you time and help match you with the right lender.

At Bristolmoneyman, we regularly help tenants across the city navigate their mortgage options, including those who are working to overcome credit problems.

If you’re looking to buy your home under the Right to Buy scheme but are concerned about your credit history, we’re here to support you.

Contact us today for tailored mortgage advice and find out what options could be available for your circumstances.

Date Last Edited: May 19, 2025