f you’re renting a council or housing association property in Hull and thinking about purchasing it through the Right to Buy scheme, you might be wondering whether your credit history will hold you back.

Bad credit can make the process more complicated, but it is still possible in many cases.

How Bad Credit Affects Your Right to Buy Options

Right to Buy is designed to help tenants become homeowners, but mortgage lenders still carry out their usual checks.

If you’ve had missed payments, defaults, County Court Judgements (CCJs), or been in a debt management plan, lenders may see you as a higher risk. That doesn’t mean you’re automatically turned away.

Specialist mortgage lenders exist to help with these types of situations, and some are open to working with applicants who have had financial issues in the past.

Does the Right to Buy Discount Count as a Deposit?

Yes, it often does. One of the main advantages of the Right to Buy scheme is that your discount can typically be used in place of a traditional deposit.

If your discount covers a significant portion of the property’s value, many lenders will accept this as enough.

That said, if your credit history includes more serious issues or has been affected recently, a mortgage lender might ask for an additional deposit to reduce their level of risk.

Improving Your Chances with Bad Credit

Even if your credit history isn’t perfect, there are things you can do that will help when applying for a Right to Buy mortgage in Hull:

  • Make sure your credit report is accurate and up to date
  • Continue paying your rent and bills on time
  • Avoid applying for new credit in the run-up to your mortgage application
  • Settle any outstanding debts if you can

Lenders want to see that your financial habits are improving and that you are managing your money well.

How Long Ago Was the Credit Issue?

Time can be a big factor. The further back the problem occurred, the more likely it is that a lender may consider you.

For example, if your CCJ or default happened several years ago and you’ve had no further issues since, you’re in a better position than someone who missed payments more recently.

How a Mortgage Broker in Hull Can Help

Getting a mortgage with bad credit can be tough without support. That’s why speaking to a mortgage broker who understands the Right to Buy scheme and bad credit lending is a smart move.

At Hullmoneyman, we’ve helped many tenants in Hull explore their mortgage options, even when their circumstances were far from straightforward.

We’ll look at your situation, explain what’s possible, and help you put together a strong application.

If you’re interested in buying your council home in Hull but have credit concerns, speak to our team today to find out how we can help.

Date Last Edited: 05/16/2025