Rent to buy houses.

[Girgy85]

Anybody know owt about how these work?

I'm considering getting my own place but as I have recently gone self employed I am unable to get a mortgage as the bank needs 2-3 years accounts. So was wondering about a rent to buy property!

[StuartHopkin]

What is a rent to buy? Ive not even heard of them?

[Woodsey]

Anybody know owt about how these work?

I'm considering getting my own place but as I have recently gone self employed I am unable to get a mortgage as the bank needs 2-3 years accounts. So was wondering about a rent to buy property!

Do you mean the housing association half rent/half buy?

[Girgy85]

Anybody know owt about how these work?

I'm considering getting my own place but as I have recently gone self employed I am unable to get a mortgage as the bank needs 2-3 years accounts. So was wondering about a rent to buy property!

Do you mean the housing association half rent/half buy?

Yea summet like that!

[Claw75]

Anybody know owt about how these work?

I'm considering getting my own place but as I have recently gone self employed I am unable to get a mortgage as the bank needs 2-3 years accounts. So was wondering about a rent to buy property!

Do you mean the housing association half rent/half buy?

Yea summet like that!

you'd still need to find the money/get a mortgage for the proportion you want to own - minimum 25% I think

[ACE2M]

Most of those kind of deals are shit mate. Post the exact details up.

[Girgy85]

Most of those kind of deals are shit mate. Post the exact details up.

Gonna go enquire today! Will post sum info up when I get it!

[TheChipPrince]

if its just mortgage 50%/rent 50% I cant really see any benefits, perhaps short term gain of having your own place, but long term far worse off.

best way to get a house?  get preggars Girgy! 

[Scottish Dave]

 I think this sounds like what my mate and his burd did. They didn't have enough money for a deposit, and seen this Rent to Buy option, it's only for new built homes in Scotland tho.

Basically, you move into a brand new built home and pay rent for 1 year.

After 1 year you have to option, move out or buy the property.

If you move out they keep all the rent you have paid and you leave

if you decide to buy it, they allow you to use the 1 years rent you have paid as a deposit on the mortgage (10% minimum).

In my mates case it was a £125,000 property, he paid £700 p/m rent for a year meaning he had built up £8,400 deposit, he then had to find another £4,100 to make up the deposit. The only catch is you need to take the mortgage with the people that built the houses, the rate is sky high, but it was only only option for my mate who was a first time buyer in Scotland with only 90% mortgages on offer.

He is fixed to their mortgage for 3 years.

[Jon MW]

There are various schemes, I think the best sounding ones - if you want to go that route - are ones where you buy a proportion of the house and rent the remainder. But periodically you have an option to increase your stake in the house, so you can gradually build up to owning it outright; and if you have difficulty some of them let you decrease your stake as well.

Generally speaking all the best schemes are available to critical public service workers like nurses and teachers, and the next best ones are available to people on the council housing waiting list.

[Eso Kral]

I run 2 estate agents and these schemes help people who cant get big mortgages so you own say 50% of the house and you rent the other 50% and over the years you get chance to buy back the other 50% at the prices on that day not the day you bought so if they have gone up you pay more and vica versa.
You still need a deposit most of the time to get the mortgage however if its a new build quite often they can work in the deposit into the price but what you need to remember is new builds are always sold at a premium so the 10% they are giving you is probably just a piece of paper to enable you to gain the mortgage.
Most people who have bought new build in the past 4-5 years dont have much equity as they got hit the hardest in 2008 and many people are still in negative equity.
If you can get a deposit yourself this is the best option if not these schemes may be your only option.
The only other thing you could do is if you see a place for say 150000 and you need a 10% deposit to buy and you can get a mortgage for 135000 is see if the vendor will take 135000 but they effectively gift you the deposit so your actually buying it for 150000 and the deposit is sat within obv the property has to value up at the 150k and your mortgage lender must be aware of the gifted deposit.
Hope this helpsif you need any more info post on here or pm me

[ACE2M]

I thought this was interesting, my friends who work for nhs used the 50/50 scheme with governement to buy a flat for 130k. Flat is now worth 70k, they were gutted and thought they were trapped forever. They enquired about their options and found out that the government are liable to swallow the whole loss as part of their deal. They sold the place and ended up in the equivalent situation of just having paid rent for the 3 years they lived there and the government (us) were down 65k.

I can't believe i haven't read about the in the papers as a big scandal  they must be doing their brains on it.

[ScottMGee]

Plain old renting is probably a much better idea as: -

Property is over priced by around 20% compared to historical norms.
Rents (compared to property prices) are low
Cheap mortgage deals are not generally available.
Continued economic gloom (public sector job losses, etc) is unlikely to generate a property boom any time soon.

I recall a property programme a couple of years ago, i.e. before the credit crunch, concluded that since the war (so about 60 years) half the time you were better off buying however the other half of the time you were better off renting and investing the savings into the stockmarket.