If you’re living in a council property in Sunderland and thinking about buying it through the Right to Buy scheme, you may be wondering how your credit history will affect your chances.
It’s a common concern, especially for those who’ve had issues with borrowing in the past. The good news is that having bad credit doesn’t always mean a mortgage is out of reach.
There are still potential routes forward, and with the right support, you may be able to take that next step onto the property ladder.
What Does Bad Credit Look Like?
When it comes to Right to Buy mortgages in Sunderland, bad credit could mean:
- Missed or late payments on bills or credit cards
- County Court Judgements (CCJs)
- Defaults or arrears
- Debt management plans or IVAs
- A history of bankruptcy
Every lender has their own view on what counts as a red flag. Some may be more flexible, especially if the problems were a few years ago and have since been resolved.
Can I Still Use the Right to Buy Scheme?
The scheme itself is open to eligible council or housing association tenants, usually those who’ve rented for at least three years.
In many cases, the discount you receive through the scheme can be used in place of a deposit.
But even if you’re eligible for the scheme, getting a mortgage with bad credit is a separate hurdle. Lenders will want to understand whether you’re in a position to meet your repayments going forward.
Will I Need to Put Down My Own Deposit?
In Sunderland, most lenders will accept your Right to Buy discount as a deposit.
That said, if your credit score is poor, some may ask for an extra contribution from your own savings to bring the deposit percentage up.
This will vary depending on how much discount you’re entitled to and the strength of the rest of your application. A larger deposit generally makes you a more appealing applicant.
Tips That Might Improve Your Chances
Here are a few things that can help if you’re applying for a Right to Buy mortgage with bad credit:
- Settle any outstanding debts if possible
- Avoid applying for new credit before you submit your mortgage application
- Check your credit report for any mistakes
- Have clear proof of income, whether employed or self employed
Lenders are cautious, especially with credit issues involved. Showing you’re financially stable now will work in your favour.
Speak to a Mortgage Broker in Sunderland
Getting a Right to Buy mortgage in Sunderland with a history of bad credit isn’t always easy, but it’s not impossible either.
At Sunderlandmoneyman, our mortgage advisors understand the ins and outs of complex situations and have access to specialist lenders that aren’t always available on the high street.
We’ll listen to your circumstances, explore the options, and help you understand what’s realistic for you.
If you’re a first time buyer in Sunderland looking to purchase your council home but you’ve been turned away in the past because of your credit score, it may be time to take another look.
Get in touch with our team today to find out where you stand and what your next steps could be.
Date Last Edited: 16/05/2025
