Other Routes to Ownership
Rent to Buy
With Rent to Buy, you can rent your home now and buy it later. Our low rents mean you can save for your mortgage deposit and, when you’ve saved enough, you can then buy your home, through Shared Ownership or outright sale. Rent to Buy is a great way to build up your credit record, which will help you get your mortgage.
You can buy your home at any time within five years of renting it.
Saving for your deposit
For your deposit, you will need to save around 10% of the total amount of your property costs, as well as enough to cover other expenses.
To keep on top of your finances, make regular standing order payments to your savings account, and try to ensure you get a decent interest rate on your money.
Help to Buy
Help to Buy is a scheme to all home buyers (not just first time buyers) buy a new build home. It is an equity loan assistance scheme from the Government’s Homes England.
You could receive up to a maximum of 20% of the purchase price through Help to Buy.
How does it work?
Once you’ve found a home you’d like to buy, we will provide you with an application form and details of the local homebuy agent for the area. We can even help you complete your application form too. Once you have been approved by them you can then arrange your mortgage.
Your mortgage and deposit should cover a minimum of up to 80% of the full purchase price (up to a value of £600,000).
The loan must be repaid within 25 years or earlier, or if you sell your home. It is interest free for the first five years, or earlier if you sell your home sooner.
You can find out more about the Help to Buy scheme on the official Help to Buy website.
Before you start, find out how much money you can borrow.
A mortgage adviser at a bank will need details of your income, outgoings, savings and credit history – they will then be able to give you an ‘agreement in principle’, which will state, in theory, how much they will be able to lend you.
An agreement in principle, however, doesn’t tie you, or the bank, to anything. Instead, it will just give you a rough idea of how much money you’ll be able to borrow.
The loan is ‘secured’ on the property, which means the mortgage lender could repossess your home if you fail to make repayments on time. For this reason it’s vital only to buy a property you can realistically afford.