If you’re renting from the council or a housing association in Manchester, you might be considering buying the property you live in using the Right to Buy scheme. But what if your credit history isn’t perfect?

Having bad credit doesn’t always mean a mortgage is out of the question. There are circumstances where you could still be eligible, depending on your overall situation and which lender you apply with.

What Do Lenders Class as Bad Credit?

Bad credit can come in many forms. It could mean you’ve had:

  • Late or missed payments
  • Defaults or arrears
  • County Court Judgements (CCJs)
  • Bankruptcy or a history of insolvency
  • Debt management plans or IVAs

Different mortgage lenders assess risk differently, but the general rule is that the more recent or severe the issue, the harder it may be to find a mortgage.

Can the Right to Buy Discount Count as a Deposit?

Yes. One of the benefits of the Right to Buy scheme is that the discount is often accepted by lenders as your deposit. This can be especially helpful if you’ve struggled to save.

With bad credit, things can be more complicated. Some lenders might ask you to put in some of your own money on top of the discount, especially if your credit history raises concerns.

That said, if your discount is equal to a larger deposit, such as 10 percent or more, you may find lenders are more flexible.

How Does Bad Credit Affect a Right to Buy Mortgage?

The key thing that mortgage lenders in Manchester look at is risk. If there’s bad credit on your file, they’ll want to know:

  • How long ago the issues happened
  • Whether they’ve been resolved
  • What your financial situation looks like now

Generally, the further in the past the problems are, the better. If you’ve taken steps to rebuild your credit and can show evidence of consistent income, your chances of approval improve.

What Can You Do to Strengthen Your Application?

If you’re applying for a Right to Buy mortgage in Manchester and you have bad credit, here are a few ways to improve your position:

  • Check your credit report and fix any inaccuracies
  • Keep up with your rent and existing commitments
  • Avoid taking on new debt during the mortgage process
  • Gather clear proof of income, especially if you’re self employed

Even small changes can make a difference when it comes to preparing your mortgage application.

Speak to a Mortgage Broker in Manchester

At Manchestermoneyman, we’ve helped many first time buyers in Manchester secure Right to Buy mortgages, even in situations where bad credit is a factor.

While every case is different, we know which lenders are more open to specialist applications and how to present your circumstances in the best possible light.

Our team is here to talk you through your options, explain what’s possible, and support you with the process from beginning to end.

Buying your home through Right to Buy can be a big step, and having a team behind you who understands the Manchester market can really make a difference.

Speak to one of our mortgage advisors today to find out what you could be eligible for.

Date Last Edited: May 16, 2025