Rent To Buy & Other Homebuyer Options

When it comes to finding alternative ways to buy, the fun doesn’t begin and end with Shared Ownership. Whatever your circumstances, there are several unique ways to make home-buying easier – you just have to be ready to explore.

Rent to Buy

What is Rent to Buy?

Like a perfume bought at a department store, Rent to Buy is a ‘try before you buy’ style of home buying. It is a government scheme that lets first-time buyers rent a property before they buy it outright.  

How does Rent to Buy work?

Through Rent to Buy, first-time buyers can pay subsidised rent on the home they live in for up to five years. After a set period (usually around two years), tenants can either buy the property or enter a Shared Ownership deal. If you do decide that the house is worth buying, you will gain 25% of the rent you paid, and 50% of any increase in the property’s value.  

Is it better to Rent or Buy?

The eternal question. The renting vs buying debate ultimately comes down to your circumstances. A first-time buyer will find it much easier to rent a house, which doesn’t require a huge deposit. This makes Rent to Buy the perfect solution for someone who wants a home but doesn’t have the money to buy one straight away. 

Help to Buy ISA

What is a Help to Buy ISA?

The Help to Buy ISA is a government scheme that is built to make saving for a mortgage easier than ever. If you were wondering, ISA stands for 'Individual Savings Account'.

How does a Help to Buy ISA work?

A Help to Buy ISA is a savings account for first-time buyers, with the added help of a government bonus when it comes to buying your home. If you feel like saving for a house is taking forever, this scheme might be for you.

Can you use Help to Buy ISA for deposit?

Yes! You can use the savings from your Help to Buy ISA to bulk up your mortgage deposit. This won't impact the amount of your government bonus.

Other buying options

What is a lifetime ISA?

A lifetime ISA (individual savings account) is a government scheme which  by first time buyers can benefit from. It can also be withdrawn if you are 60 or over. 

How does a lifetime ISA work? 

Put up to £4,000 per year (£333.33 per month) into the lifetime ISA, and the government will add a 25% bonus per year, up to the value of  £1,000.  In order to be eligible to use a lifetime ISA after 12 months, the first home must be under £450,000 and bought with a mortgage.   A solicitor then instructs the ISA provider, who pay the funds directly.