Right to Buy Mortgage Approved With Missed Payments and Low Credit Score
A case study showing how joint applicants secured a Right to Buy mortgage with self-employed income, missed payments, and a low credit score.
- Publication date
- Case ID:
- 126125076
Question:
"Can we get a mortgage if I'm self-employed with less than 3 years accounts, we're using Right to Buy, and my credit history isn't perfect?"
Customer situation
Joint application
Previous homeowner using Right to Buy
One self-employed applicant in a partnership with under three years' accounts, and one permanently employed applicant
Right to Buy discount only – no personal cash deposit
Residential house
Historic missed payments across credit and utility accounts, contributing to a low credit score, with no active defaults or unsatisfied CCJs at the time of application
Why This Wasn't Straightforward
The application combined a Right to Buy purchase with a low credit score driven by historic missed payments. Many lenders rely heavily on credit scoring for Right to Buy cases and apply minimum score thresholds, meaning applications with historic payment issues are often declined without a full affordability assessment.
The Outcome
Mortgage approved.
A lender was chosen that looked beyond automated scoring and assessed the full household circumstances. They took a practical view of the limited trading history, accepted the Right to Buy structure, and focused on affordability and stability rather than historic issues alone.
Key points
- Loan-to-value
- 57% (based on full market value)
- Mortgage term
- 35 years
- Lender type
- Specialist lender with a flexible approach to trading history and Right to Buy cases without a personal deposit. Less reliance was placed on credit score alone.
- Mortgage Adviser
- John Hall
Who This May
Be Relevant For
Applicants seeking a Right to Buy mortgage with historic missed payments or arrears
Borrowers declined because credit score–driven lenders would not assess the case fully
Buyers told Right to Buy is not possible with imperfect credit
Applicants needing a specialist lender due to adverse credit history
Plain-English Summary
Having adverse credit or a limited self-employed history doesn't automatically rule out a Right to Buy mortgage. Some lenders are willing to look beyond a credit score and consider the full circumstances. Outcomes always depend on the details of the application at the time.