subject: Buy A Home Without Needing A Mortgage Or A Deposit [print this page] If someone said to you that you could get onto the property ladder and not have to go looking for a mortgage or pay a large deposit, would you believe them? Actually, it is possible to buy property this way when you choose to rent to buy.
The benefits of renting to buy
Here are some of the many benefits of renting to buy
* There is no mortgage to take out initially;
* From moving into the property you have ownership;
* Very low start-up costs, typically around 2% of the property price;
* We do not have a share in the property, you have 100%;
* If you build up equity in it and you decide to buy, this equity is yours;
* Your rent is deducted from the price you pay, its not wasted money;
* You are buying the property over a time that works for you.
Make your rent work for you not your landlord
If you are renting now and can only dream of one day being able to move into your own home, a rent to buy solution may be ideal for you. Right now, any rent you pay each month is dead money, as you have nothing to show for it. You could be paying rent each month with the option of buying the property and your rent would go towards reducing the price you have to pay for the property in the future.
You only have to find a small outlay to get on the ladder
To own your home this way there is an initial small outlay to get started; however, this is nowhere near the 20% deposit typically asked when you take on a mortgage. With us, usually it is in the region of 2% of the price of the property. This money is then deducted from the final purchase price of the property when you buy, typically 3 to 5 years down the line.
Your fate is not sealed
Of course, anything might happen in 3 to 5 years and when you choose to enter into a rent to buy option, your fate is not sealed. When you take out a mortgage, from the moment you sign on the dotted line you have a large debt and monthly mortgage repayments around your neck. If anything untoward were to happen during this time, which meant you wished you had never entered into the agreement, then you have to face the consequences.
When you rent to buy, we understand that you might have second thoughts and so when your rental period is reached if you should decide not to go ahead and buy, you can simply walk away. There is no pressure on you and you have nothing more to pay us.
My credit rating is bad I cannot get a mortgage
If you have a bad credit rating then this may be holding you back from obtaining a mortgage. Again, the rent to buy scheme we offer may work in your favour. You do not have to apply for a mortgage to buy straight away, you can move into a property and have time, generally between 3 to 5 years, to rebuild your credit rating and get back on your feet. Of course, you are not losing out as you buy the property at the agreed price and if you build up any equity in it, it is yours if you decide to buy. However, you also have the option of walking away if things do not work as you had anticipated.
