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How to become a UK Homeowner now 
with NO mortgage, NO Big Deposit and NO Credit Check.

WELCOME

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It might sound too good to be true, but let me explain exactly how you could get your foot on the property ladder legally, and own your own home in as little as five years.

Called Rent to Buy, it’s ideal if you’re unable to get a mortgage – maybe because you have no credit history or previous poor credit, because you’re self employed without the books to prove your income, or if you’re new to the UK. It’s also great if you’re struggling to save a giant deposit.

You’re a Tenant Buyer.

You pay rent each month which is agreed up front.

You Have the Option to Buy

At a price, fixed up front – typically the market value – any time during the term.

Once you can get a mortgage

You exercise your option to buy the house at the price agreed.

Frequently Asked Questions

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How's it possible to buy the house without getting a mortgage?
Because you will rent the property for a period of time, typically five-seven years, and in the meantime save up your deposit and improve your credit score. You’ll be living in your home, knowing you have the option to buy it at a fixed price any time up to the end of the term, usually when you qualify for a mortgage. If at the end of the period you decide you don’t want to buy the property, you are under no obligation to do so.
What if I still don't qualify for a mortgage at the end?
Five to ten years should be a sufficent amount of time for you to qualify for a mortgage, however sometimes in life things happen, so we recommend you contact a local mortgage broker and find out what actions you need to adopt for you to be able to qualify for a mortgage within the agreed term.

If you were still unable to qualify for a mortgage by the end of the term, you could:

1. Sell the property. The difference between the sale price and the price you agreed to buy it for would be your profit.

2. Not buy the property. In this case your option would expire, and you would forgo any moving-in-money.

Can I sell the property for profit at any time?
Yes you can. That’s one of the advantages of Rent to Buy. You are get all of the benefits of being a homeowner but without having a mortgage.

As house prices increase over the term you can sell the property and benefit from any equity in the property.

What happens if house prices fall?
While there is always an element of risk, the data on the performance of the UK housing market shows that house prices have never dropped over a period of 5-7 years.

In the event that they did, you may still have built up equity in the property. Since your agreement gives you the right, but not the obligation, to buy – you could simply walk away.

If I don't go buy the property will I get my Moving in Money back?
No, unfortunately you will not. Moving in Money is a payment you make to demonstrate that you are committed to buying the house, and is credited again the purchase price when you buy.

Moving in money is typically between three and five percent of the purchase price.

What is the legal process?
In a ‘traditional’ property purchase you “exchange contracts”. At this point both sides are legally committed to the sale and purchase. A “completion date” is agreed and this is when you become the legal owner and move in.

With Rent to Buy you have an option to buy at an agreed “term” EG: (5 years) so you can purchase the property within the term at the agreed “option price” set from the start.

Once exchange of contracts has taken place you can move into the property straight away. Both
parties have entered into a legal agreement and the seller is committed to selling the house to you at the fixed price. The seller cannot change their mind or revise the price so you have the security of knowing you are on the first step to home ownership.

However – you can change your mind if you do not wish to buy. (you have an option to buy).

Your solicitor will guide you through the process and we can provide you with an experienced Rent to Buy solicitor who will independently represent you.

If house prices rise can the owner try and change the price?
Definitely not. The seller has entered into a legally binding agreement to sell the property at the agreed price and they cannot change their mind.
Who is responsible for maintenance of the house?
The house is now your home and we want you to treat it that way. You are free to decorate and improve the property as you wish (just like your own home). You benefit from any increases in the value of the property as a result of any improvements you have made, not the seller. You pay for any maintenance costs of the property. The seller will however carry out an annual gas safety check.
Who pays for the insurance?
The seller is responsible for organising and paying for building insurance. If you need to make a claim on the building insurance, it will be subject to you paying the seller’s insurance excess. It is your responsibility to organise and pay for contents insurance for your own possessions.
What happens if I can't afford to make the payments?
In the same way as if you had a mortgage or were renting in the traditional way, it is your responsibility to pay the rent on time and if you fail to do so your home is at risk.

If you experience difficulties in paying you should contact us immediately to agree a proposal for payment. If you default on your payment your tenancy may be terminated and you would lose the right to purchase the property.

Can I have pets in the house?
Yes, you can. Especially cats, because cats are awesome 🙂

Still have questions?

Get in touch with us today. Our friendly team will talk you through what’s involved, and answer your questions.