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.
