Right to Acquire Mortgages: Comprehensive Guide 2025

If you are a housing association tenant in England, the Right to Acquire scheme could be your route to homeownership. This government-backed programme allows eligible tenants to purchase their rented home at a discount, making it one of the most affordable ways to get on the property ladder.

In this guide, we explain how Right to Acquire works, who is eligible, the discounts available, how to secure a mortgage, and the step-by-step process for purchasing your housing association home.

What is the Right to Acquire?

The Right to Acquire is a government scheme that gives eligible housing association tenants in England the legal right to buy the property they rent at a discounted price. It is the housing association equivalent of the Right to Buy scheme, which applies to council tenants.

The key difference between the two schemes is the level of discount available. Right to Buy offers discounts of up to £96,000 (or £127,900 in London), whereas Right to Acquire discounts are significantly smaller — ranging from £9,000 to £16,000, depending on the region. Despite the lower discounts, Right to Acquire still represents a meaningful financial benefit and can make homeownership accessible to tenants who might otherwise struggle to buy.

The discount is applied to the market value of the property, reducing the price you pay. In some cases, the discount can serve as part or all of your mortgage deposit, meaning you may need little or no personal savings to complete the purchase.

Who is eligible for Right to Acquire?

To qualify for the Right to Acquire, you must meet certain eligibility criteria related to your tenancy and the property.

Tenancy requirements:

• You must be a housing association tenant (also known as a registered social landlord or registered provider)
• You must have been a public sector tenant for at least three years — this can be a combination of housing association and council tenancy time, and it does not have to be continuous or in the same property
• Your tenancy must have started on or after 15 January 1989 (tenancies that started before this date may qualify for a different scheme called the Preserved Right to Buy)

Property requirements:

• The property must have been built or purchased with public funding after 1 April 1997
• The property must be your only or main home
• The property must be a self-contained dwelling (houses and most flats qualify)
• Some types of property are excluded, including sheltered housing, properties adapted for elderly or disabled tenants, and properties in areas where housing association stock is particularly limited

Who is not eligible:

• Tenants with ongoing possession orders or repossession proceedings against them
• Tenants who are undischarged bankrupts
• Tenants of properties that were transferred from a council to a housing association (these may have the Preserved Right to Buy instead)

If you are unsure whether you qualify, your housing association should be able to confirm your eligibility when you submit an application.

How much discount can you get?

Right to Acquire discounts are fixed amounts determined by the region where the property is located, not by the length of your tenancy (unlike Right to Buy, where the discount increases with years of tenancy).

The discount amounts range from £9,000 to £16,000 depending on the area. The government publishes a table of discount amounts by local authority area, and the amounts are reviewed periodically.

Example:

If your housing association property has a market value of £150,000 and the Right to Acquire discount for your region is £12,000, you would pay £138,000 for the property.

While the discounts are more modest than those available through Right to Buy, they still represent a significant saving — and the discount effectively becomes equity in your home from day one.

How the Right to Acquire discount affects your mortgage

The discount you receive through Right to Acquire can be used as part or all of your mortgage deposit. This is one of the most significant advantages of the scheme, as it reduces or eliminates the need for personal savings. For more on deposits generally, see our guide to first-time buyer mortgages.

Example scenario:

• Property market value: £150,000
• Right to Acquire discount: £12,000
• Purchase price: £138,000
• Discount as a percentage of market value: 8%

In this case, the £12,000 discount represents an 8% deposit equivalent. Most lenders would treat this as equity in the property, meaning you could potentially get a mortgage for £138,000 at a 92% LTV without needing any additional deposit.

Some lenders may still require you to contribute some personal funds — this varies by lender. At Option Finance, we know which lenders are most favourable for Right to Acquire purchases and can advise on the best approach for your circumstances.

Use our mortgage calculator to estimate what your monthly payments would be, and our affordability calculator to check how much you could borrow.

The Right to Acquire application process

Applying for Right to Acquire involves several steps, and the timeline can vary depending on your housing association’s responsiveness and the complexity of your purchase.

Step 1: Submit a Right to Acquire application (RTA1 form)

You begin by completing and submitting an RTA1 form to your housing association. This form notifies them of your intention to purchase the property under the Right to Acquire scheme. Your housing association is legally required to respond within four weeks of receiving your application.

Step 2: Receive the offer notice (Section 125 notice)

If your application is accepted, the housing association will send you an offer notice. This sets out:

• The price they are offering the property at (market value minus the Right to Acquire discount)
• A description of the property and any terms of sale
• The discount amount and how it was calculated
• Details of any structural defects the housing association is aware of

You have 12 weeks to accept or decline the offer. If you do not respond within this time, the housing association may send a reminder, giving you a further 28 days.

Step 3: Get a mortgage agreement in principle

Once you know the purchase price, speak to a mortgage broker to get an agreement in principle. This confirms how much a lender is willing to offer you and gives you confidence that the purchase is financially viable.

Step 4: Instruct a solicitor

You will need a solicitor or conveyancer to handle the legal work involved in the purchase. They will review the offer notice, conduct searches, and manage the exchange of contracts and completion.

Step 5: Arrange a property survey

While not always legally required, getting a property survey is strongly recommended. A survey can identify structural issues, damp, subsidence, or other problems that could be expensive to fix. As with any property purchase, you want to know exactly what you are buying.

Step 6: Finalise your mortgage and complete

Once your mortgage is approved, your solicitor will exchange contracts and set a completion date. On completion, you become the legal owner of the property.

The entire process typically takes two to four months from initial application to completion, though it can take longer if there are delays with the housing association, the lender, or the legal process.

Mortgage options for Right to Acquire purchases

Most mainstream lenders will consider mortgage applications for Right to Acquire purchases, but some are more experienced with the scheme than others. Here are some considerations:

LTV and deposit:

As discussed, the Right to Acquire discount can serve as your deposit. Depending on the size of the discount relative to the property value, you may be able to secure a mortgage with little or no personal contribution. However, having some personal savings as well will give you access to better interest rates and more lender options.

Interest rates:

Right to Acquire mortgages are standard residential mortgages, so the interest rates available are the same as for any other purchase. The rate you receive will depend on your LTV, credit history, income, and the specific product you choose. Use our repayment calculator to compare different rate scenarios. Check today’s mortgage rates to see what’s currently available in the market.

First-time buyer benefits:

If you have never owned a property before, you qualify as a first-time buyer and can benefit from stamp duty relief. This means you pay no stamp duty on the first £300,000 of the purchase price, and 5% on the portion between £300,000 and £500,000. Given that most Right to Acquire properties are priced well under £300,000, you would likely pay no stamp duty at all. Check your liability with our stamp duty calculator.

Credit history considerations:

If you have had credit difficulties in the past, there are still mortgage options available. Some lenders specialise in adverse credit mortgages and are willing to consider applications from borrowers with missed payments, defaults, or CCJs, though the terms may be less favourable.

Restrictions after purchasing

There are some important restrictions to be aware of after buying your home through Right to Acquire.

Repaying the discount:

If you sell the property within five years of purchasing it, you may need to repay some or all of the discount. The repayment is tapered:

• Sell within the first year: repay 100% of the discount
• Sell within the second year: repay 80%
• Sell within the third year: repay 60%
• Sell within the fourth year: repay 40%
• Sell within the fifth year: repay 20%
• Sell after five years: no repayment required

If you need to sell within the five-year period — for example, to move home for work or family reasons — you should factor the discount repayment into your calculations. Understanding this helps you plan ahead using our ultimate first-time buyer guide.

First refusal for the housing association:

In some cases, you may be required to offer the property back to the housing association (or another social housing provider) before selling on the open market, particularly if the property is in a rural area designated as a protected area.

Right to Acquire vs Right to Buy

It is worth understanding how Right to Acquire compares to the Right to Buy scheme, as the two are often confused.

Feature	Right to Acquire	Right to Buy
Who qualifies	Housing association tenants	Council tenants
Discount type	Fixed amount by region	Percentage based on tenancy length
Maximum discount	£9,000 - £16,000	£96,000 (£127,900 in London)
Minimum tenancy	3 years	3 years
Property type	Built/purchased with public funds after 1997	Council-owned homes

If you are a council tenant, you should explore Right to Buy instead, which typically offers much larger discounts. If you are a housing association tenant whose property was transferred from council ownership, you may have the Preserved Right to Buy, which also offers larger discounts.

Get expert mortgage advice for your Right to Acquire purchase

Purchasing your housing association home through the Right to Acquire is an excellent opportunity to become a homeowner, and having the right mortgage advice can ensure you get the best possible deal. At Option Finance, we have experience arranging mortgages for Right to Acquire purchases and can guide you through every step of the process.

From getting your agreement in principle to finding the most competitive mortgage product for your circumstances, we are here to help. We can also advise on whether you need additional deposit beyond the discount, which lenders are most suitable, and how to manage any credit challenges.

Whether you are a first-time buyer using Right to Acquire or looking to remortgage an existing Right to Acquire property, our team has the expertise you need.

Apply now to speak with one of our mortgage advisers and start the journey to owning your home.