A so-called ‘Rent To Own’ mortgage product is now available across Britain following a successful pilot.
Rent To Own (RTO) is designed to allow aspiring homeowners to buy without an initial deposit.
The RTO mortgage allows you to rent a home with the option to purchase it later, typically involving a portion of your rent contributing to the down payment.
Hanley Intermediaries’ Rent to Own mortgage offers a five-year fixed rate of 5.79%, and is available up to 100% LTV for eligible applicants meeting its Rent to Own criteria.
Applicants must have a minimum household income of £25,000 per year and loans can be offered up to 133% of current rental payments, with evidence of full rental payments required over the previous 12 months.
There are no application or arrangement fees, reducing upfront costs, although a valuation fee is applicable, subject to the property’s value.
There’s a maximum loan size of £350,000 and a minimum loan size of £30,000.
Hanley Intermediaries is now making this available across Britain having launched it last spring, initially limiting it to properties within local ST postcodes.
Each case is assessed by an in-house underwriting team, meaning no credit scoring, and the product is available through the Hanley Economic Building Society branch network and selected intermediary channels.
This article is taken from Landlord Today