How the heck do you buy a home without a mortgage?

You have been renting for years and are now ready to get on the property ladder. You have a good and steady income but just not high enough to afford a 10–15% mortgage deposit. Perhaps you are new in the UK, or self-employed, or never used a credit card. The banks won’t touch you because you have little or no credit history. Well, there are nearly 11 million households like you in the UK — many who are ready to buy but either don’t have enough deposit or a perfect credit score. These are the real faces of Generation Rent.

So how on earth do you buy a home without a mortgage?

This is a huge problem and there has been a few attempts to tackle it. There is the Government Help-to-Buy scheme but this scheme still requires you to have a perfect credit score, plus there’s an income cap. Not forgetting you’re only limited to leasehold, new build properties

In a world run by mortgages, it’s not surprising people will be skeptical about something so new and so different. It’s actually quite a simple scheme.

Rather than needing to wait for 3 years to save up, Jane and partner moved in to their dream home 3 years earlier.

The seller is often a landlord/property Investor who is looking to sell if the price is right. Like the car hire company, the seller is looking for the certainty of a sale at a full market value price. Rather than being exposed to market fluctuations, the Seller locks in an agreed sale price at an agreed date. Benefiting also from monthly rental payments without the voids and hassle that comes with being a landlord.

Very few buyers would choose to walk away from their deposit contribution and 2–3 years worth of deposit contributions so the risk is very low. In the unlikely event that happens; the Seller has the option of selling directly to RenterBuyer at the agreed price or sell in the open market. So there’s nothing to lose really for the seller.

The vision is based on a very simple belief that everyone with a good stable income deserves a home to call their home. Affordable homes should not be the exclusive privilege of those with large bank balance or a perfect credit history.

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