Barclays Launches 0% Deposit Mortgage for Right to Buy Buyers
Barclays has introduced a new mortgage product aimed at helping council and housing association tenants take their first step onto the property ladder - with no deposit required.
The offer is available to those purchasing their home through the Right to Buy scheme, and instead of asking for a cash deposit, Barclays will count the Right to Buy discount as the deposit. It’s a move designed to remove one of the biggest barriers facing many aspiring homeowners - saving for a lump sum.
How does it work?
If someone is eligible for a 40% discount on the market value of their home through the Right to Buy scheme, that discount will be treated as if it were a 40% deposit. That puts them into a lower loan-to-value (LTV) band - and potentially qualifies them for more competitive interest rates, similar to a buyer who put down an actual 40% cash deposit.
The mortgage is capped at 90% of the full market value, and higher-value properties are excluded from the offer. In those cases, Barclays may still require a traditional deposit.
Why is this significant?
Right to Buy has been a popular route into homeownership for decades, but even with discounts in place, saving for a deposit has remained a stumbling block for many tenants.
By effectively lending the full purchase price and using the built-in discount as equity, Barclays is opening the door for more tenants to make the leap into ownership.
Lee Chiswell, head of mortgages at Barclays, explained:
“The Right to Buy scheme has long been a crucial route to homeownership for council and housing association tenants, yet we know that saving for a deposit remains a key obstacle.
By lending for the full value of the property, we’re removing the need for buyers to have any deposit at all, helping many completely sidestep their largest barrier to homeownership.”
What else is Barclays offering in 2025?
This new product is part of a wider push from Barclays to make homeownership more accessible. Other recent initiatives include:
Mortgage Boost - a product allowing family or friends to support a buyer’s borrowing power without having to gift or lend cash
Increased loan limits - now offering up to £640,000 for house purchases and £310,000 for flats at higher LTVs
These products aim to support both first-time buyers and movers who may be struggling to meet lending criteria due to rising house prices and affordability challenges.
Could this work for you?
If you're renting your home through a council or housing association and are eligible for the Right to Buy scheme, this mortgage could offer a real alternative to years of saving for a deposit.
It’s important to understand your rights, your eligibility, and what this kind of mortgage would look like based on your home’s market value and discount.
At & Co, we can help guide you through the process and connect you with experienced mortgage advisors who understand the ins and outs of Right to Buy and low-deposit mortgage products.
Want to explore your options?
Get in touch if you’d like to find out more about the Right to Buy process or see whether you might qualify. No jargon - just clear advice and support to help you move forward.
This article is for general information only and does not constitute financial advice. Please speak to a qualified mortgage advisor for guidance tailored to your situation.
