Rent to Buy – A Renter’s Fairy Godmother
14 October 2016
Rent to buy is maybe the solution for the first time buyer! With help to buy ISA’s from the Government helping thousands across the country, is it time to jump on the band waggon?
With a 5% deposit, 20% Help to Buy Equity Loan and a 75% mortgage, a home worth £600,000 could be yours!
Available on new-build homes up to £600,000 in England, £300,000 in Wales and £230,000 in Scotland.
You need to have a minimum deposit of 5% of the property value for your new home
In England (excluding London) and Wales the UK Government will lend you up to 20% of the property value through an equity loan which can be repaid at any time during the loan term or on the sale of your home
You’ll only need to secure up to a 75% mortgage from a bank or building society, making that first step a little easier
In London the government will lend you up to 40% of the property value through an equity loan, and you’ll need to secure a mortgage of up to 55% from a bank or building society.
In Scotland, the Scottish Government will lend you up to 15% of the property value through an equity loan, and you’ll need to secure up to an 80% mortgage from a bank or building society
You won’t be charged any loan fees for the first five years of owning your home
There is a range of competitive mortgage rates available with this scheme, so you can find something to suit your budget
There are currently two Help to Buy schemes in England and Wales – 'Equity Loan' and 'Mortgage Guarantee'. Both require a 5% deposit and are available to first-time buyers and existing homeowners.
So, if you’re ready now is the time! Get on the ladder and have somewhere to start – look for a buy to rent now.