If you’re a council or housing association tenant in Leicester and thinking about buying your home through the Right to Buy scheme, your credit history might be on your mind.

Bad credit can make things more complex, but it does not necessarily mean you are out of options.

Are You Still Eligible?

Having bad credit does not stop you from being eligible for the Right to Buy scheme. Every mortgage lender works differently, and some are more flexible than others.

Missed payments, County Court Judgements (CCJs), defaults, or debt management plans can all be factors, but they do not automatically result in a rejection.

Lenders will look at how long ago the issues occurred and whether they have since been settled or improved. If you’ve shown recent stability, that could strengthen your application.

Will You Need to Put Down a Deposit?

A major benefit of the Right to Buy scheme is that the discount on the property is often accepted by lenders as your deposit.

This can make things more accessible, especially for those who have struggled to save.

That said, if your credit history presents a higher risk to the lender, they may ask for an additional deposit.

The more serious the issues, the more likely it is that a larger deposit will be requested to help balance that risk.

What Impact Does Bad Credit Have?

All types of bad credit can influence how much you can borrow and who will lend to you. Some of the more common issues lenders assess include:

  • Missed payments and arrears
  • Defaults and CCJs
  • Bankruptcy or Individual Voluntary Arrangements (IVAs)
  • Past repossessions

The longer ago these events occurred and the more stable your finances are now, the more likely it is that you will find a lender willing to work with you.

Steps You Can Take to Improve Your Chances

Even with bad credit, there are things you can do to present a stronger application:

  • Check your credit file for errors and have them corrected
  • Avoid taking on new credit agreements before applying
  • Maintain regular rent payments and avoid missed bills
  • Pay down existing debts if possible

These steps show that you are financially responsible and that your situation has improved.

Getting Expert Mortgage Advice in Leicester

If you are exploring a Right to Buy mortgage in Leicester with bad credit, speaking to a mortgage broker can make a big difference.

At Leicestermoneyman, we have experience working with a wide range of lenders, including those who consider more complex credit histories.

We will look at your situation carefully and help you understand what your options are. If a mortgage is possible, we will work to find the best route forward for you.

Reach out today to speak with one of our mortgage advisors in Leicester and find out how we can help you take the next step toward owning your home.

Date Last Edited: May 16, 2025