Right-to-Buy mortgages are for use by public housing tenants who wish to purchase their property under the Right-to-Buy Scheme. Public housing tenants are people who rent their property from the local council, a non-charitable housing association or a housing action trust. The vast majority of Right-to-Buy sales are of local authority properties.

The Right-to-Buy scheme was first introduced in 1980, with the main aim of offering everyone the opportunity to own a decent home and so promote social cohesion, well being and self-dependence. The Right-to-Buy Scheme has since helped nearly 1.5 million council tenants in England to realise their aspirations to own their own homes, with ongoing sales under the scheme now running at around 40,000 a year.

The Right-to-Buy scheme enables tenants to buy their homes at a discount price, provided that they have been living in their home for two years and meet the other qualification criteria. The Right-to-Buy scheme is open to virtually any secure tenant who can afford to buy with the exception of dwellings occupied in connection with their employment and housing specially provided for the elderly and (in certain cases) the disabled.

There are two options available under the Right-to-Buy:

1. You can buy your home by paying the full purchase price at once with discounts ranging from 32% to 70% dependent on how many years you have spent as a public sector tenant and subject to a maximum discount limit for the area you live in.

Houses: The discount after two years is 32% with an additional 1% for every extra year up to a maximum of 60%.

Flats: The discount after two years is 44% with an additional 2% for every extra year up to a maximum of 70%.

There has always been a cash limit on Right-to-Buy discounts, but new limits came into effect on 11 February 1999, affecting all applications made by tenants on or after that date. The changes were made in order to ensure that the scheme provided better value for money for taxpayers, as well as still offering generous discounts to purchasers. Subject to the cash limit, tenants are still eligible to claim up to 60% in discount off the market value of their house and up to 70% off a flat depending on the number of years they have been a public sector tenant. For anyone who applies after 10 February 1999, the maximum cash limit on discount is:

£38,000 if you live in London or the South East

£34,000 in the Eastern Region

£30,000 in the South-West

£26,000 in the North-West or the West Midlands

£24,000 in Wales, the East Midlands or Yorkshire and the Humber

£22,000 in the North-East

2. You can use the Rent To Mortgage scheme if you want to buy your home, but can't afford to pay for it all at once.

Further details on both schemes can be found in the booklet Your Right-to-Buy your Home. It is strongly recommended that you read this booklet before applying for the Right-to-Buy. It can be obtained either through your landlord or by phoning the number below.