Single mother in Manchester, purchases home under Right to Buy scheme using zero-hours contract income & working benefit income.

By looking beyond rigid, automated underwriting models, First Select Mortgage Brokers helped a hardworking single mother secure a competitive Right to Buy mortgage on a zero-hours contract. By combining variable earned income with state benefits, we turned a seemingly impossible scenario into permanent housing stability and a lasting family legacy.

Think of securing a mortgage like fitting together a complex jigsaw puzzle. If even a single piece appears misshapen, automated systems at high-street banks immediately push the board off the table.

For many hardworking families, this creates a frustrating paradox: you can reliably pay rent month after month, yet traditional algorithms classify you as “not mortgage worthy” when you try to buy the very home you live in.

The Obstacle: An Assembly Line “No”

Our client, a dedicated single mother living in her council home, was presented with a life-changing opportunity: purchase her property under the UK Government’s Right to Buy scheme. Exercising this right would give her children permanent stability and an asset to inherit in the future.

However, her financial layout didn’t fit the standard high-street mould:

• Income Structure: Employed on a zero-hours contract, supplemented by Child Benefit and Working Tax Credits.
• Credit Profile: Satisfactory, with a consistent track record of meeting commitments.
• The Main Barrier: Multiple mortgage brokers had already turned her away, declaring her combination of zero-hours earnings and benefit income ineligible for high-street mortgage lenders.

To a standard automated system, a zero-hours contract looks like shifting sand. Most high-street lenders require a minimum 12-to-24-month unbroken history with a single employer or outright reject variable-hour contracts when state benefits form a significant portion of the total household income. After several rejections, the door to home ownership seemed firmly shut.

+-----------------------------------------------------------------------+
|                       FINANCIAL PROFILE OVERVIEW                      |
+--------------------------+--------------------------------------------+
| Scheme                   | Right to Buy                               |
| Employment Status        | Zero-Hours Contract                        |
| Supplementary Income     | Child Benefit & Working Tax Credits        |
| High-Street Verdict      | Declined (Inflexible Income Criteria)     |
| First Select Outcome     | Approved (100% LTV of Discounted Price)    |
+--------------------------+--------------------------------------------+

The Engineering: Manual Underwriting & Manual Logic

When the client reached Claire at First Select Mortgage Brokers, the approach shifted from automated box-ticking to manual underwriting logic.

1. Evidencing Income Stability: Claire audited 12 months of payslips and bank statements to establish a solid, predictable baseline for the zero-hours earnings, demonstrating that the income was consistent despite the contractual structure.
2. Structuring Benefit Alignment: Not all lenders treat state support equally. Claire identified a specialist lender whose criteria fully accepts Child Benefit and Working Tax Credits at 100% value alongside earned income.
3. Leveraging the Scheme Discount: The built-in Right to Buy discount served as the equity deposit, removing the need for additional cash reserves and mitigating the lender’s loan-to-value (LTV) exposure.

By presenting a fully verified package to a manual underwriting team, Claire demonstrated that the proposed mortgage payments were actually lower than the client’s current monthly rent obligations.

The Outcome: Foundation for the Future

The lender issued a formal offer at a competitive rate, ensuring long-term monthly affordability without stretching the household budget.

More than just a financial transaction, securing this mortgage transformed a rental property into a permanent family asset—providing long-term security today and an inheritance for her children tomorrow.

Key Takeaway: A rejection from a computer algorithm is rarely a final answer. If your income structure is non-standard, success relies on matching your specific profile with a lender that uses human judgement rather than automated checklists.

Disclosure & Privacy

The above case study is a genuine client of First Select Mortgage Brokers. Exact details of the clients situation have been modified or changed very slightly to protect the clients privacy.

Our team of experts are ready and waiting to help. Contact the team below:

Phone: 0161 393 1575 // 07780 446 937

Email: hello@firstselectfs.co.uk

Visit our Contact Us page to make a formal enquiry

Visit us on our Social Channels:

Facebook

Linkedin

Instagram

FCA Risk Warning:

YOUR HOME OR OTHER PROPERTY CAN BE REPOSSESSED IF YOU FAIL TO KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER LOAN SECURED AGAINST IT.

The post How to Get a Right to Buy Mortgage on a Zero-Hours Contract. first appeared on First Select Mortgage Brokers.

Right to Buy Mortgages: ‘Right to Buy’ is a government backed home purchase scheme in England for council house tenants to purchase the home they currently rent. The Right to Buy discount is generous and can allow council (and some housing association) tenants to purchase their rental property at a discounted price. Since 1980, thousands of families have used the scheme to purchase their home.

First Select Mortgage Brokers are experts in supporting Right to Buy purchases. Not all mortgage lenders support Right to Buy, so its important to use an expert like us to fine the best lender for your situation. We work with major banks, and also specialist lenders. They can consider all situations, low-credit, benefit income, zero hours contracts and child maintenance payments. We can find the right lender for you.

How much discount can you get?

The maximum discounts on Right to Buy changed in November 2024 following the new Labour government coming to power. Overall all the discounts have been reduced.

For a full breakdown of discounts can be found here: Right to Buy Discounts

Do I need to save for a deposit?

In some cases you do NOT need to save for a deposit. Many mortgage lenders will use your discount as your deposit, this means you do not need to save for a deposit. However this does depend on the value of your home, and for higher value homes, you may need to put some cash in to meet the minimum deposit

Not every lender will offer Right to Buy Mortgages, so speak to us, as an independent broker, we have access to a wide selection of lenders.

Applying for Right to Buy

To start the process of buying your rental property you need to complete the RTB1 form, you can find a link to this form at the bottom of this page. Once this is completed and submitted, your landlord will contact you to confirm you have the Right to Buy.

Your landlord or housing association will carry out a valuation of your home to confirm its value. They will then calculate the discount you qualify for. The discounted purchase price is the price you pay. Your landlord will provide you with an S125 form, which will confirm all the above.

Now is the time to speak to a mortgage adviser, and here at First Select Mortgage Brokers, we have access to the widest selection of mortgage lenders who offer Right to Buy mortgages. We will need a copy of your S125 form to confirm you have the right to buy and your mortgage lender will also need to see this.

Our Services

Our team of friendly experts will explain the process of applying for a mortgage and guide you along the journey. We can explain the entire process and provide FCA regulated advice and recommendation on the best financial solutions for your circumstances, based on your preferences.

• A dedicated Mortgage Adviser you can call or message anytime
• Direct access via phone, email and messenger at every stage
• Full UK coverage, we can support clients all across the UK.
• Mortgage Decision in Principle (DIP) certificate
• Insurance & Protection to shelter you from unexpected events

Find out more..

Ready to start an application or just want to ask a few questions? Complete our short form below and a member of our team will contact you same day, and usually within the hour, to discuss your situation and explain how we can help.

Read our Free Information guide for Right to Buy Mortgages.

We have published a Free Information Guide for First Time Buyers. It is a short 5 minute read and can be accessed: here

About us

First Select Mortgage Brokers are friendly and professional mortgage brokers. We can access mortgages from the whole of the UK mortgage market, meaning we can get the best possible deal for our clients circumstances. Based in Manchester, we are a family business with decades of experience in financial services. Our goal is to be the most trusted regional mortgage advisory business in the northwest of England.

Our team of experts are ready and waiting to help. Contact the team below:

Phone: 0161 393 1575 // 07780 446 937

Email: hello@firstselectfs.co.uk

Visit our Contact Us page to make a formal enquiry

Visit us on our Social Channels:

Facebook

Linkedin

X / Twitter

References & Disclosure:

https://www.gov.uk/right-to-buy-buying-your-council-home/discounts

https://www.ownyourhome.gov.uk/scheme/right-to-buy/applying/rtb1-application-form/

https://www.gov.uk/government/statistics/right-to-buy-sales-and-replacements-england-2021-to-2022/right-to-buy-sales-and-replacements-england-april-2021-to-march-2022

Changes to Right to Buy Discounts

The post Right to Buy Mortgages first appeared on First Select Mortgage Brokers.