How to rent to buy a house

http://HappyHouseBuyer.co.uk How to rent to buy a house is a questioned many people are asking due to the struggle to try and find a mortgage with a realistic deposit that few are able to do.

So what is Rent to Buy? It’s a new way to help first time buyers get on the property ladder and move into a home they can own without the need for a massive deposit which holds so many people back

It’s ideal for self employed people along with those with credit rating issues new or returning back to the UK Along with the thousands of others finding it difficult to get a mortgage and onto the property ladder.

Its no secret that first time buyers are struggling to find a way to get that all important first step onto the property ladder. Tougher lending criteria and high deposits required by banks has made it almost impossible for some to get a change to own there own home especially in expensive locations across the UK.

A rent to own property could offer hope to many would be first time buyers and those wanting to escape the rental trap and move into a family home they can one day own.

A past article highlight the despair for many first time buyers reporting many felt they would not be able to afford to purchase a property until they are nearly 40 years old with many others admitting to haven given up the hope to every owning there own home.

The article went on to reveal the average deposit required at that time was around 23% of the property price. Should this be the same today would mean a first time buyer purchasing a property at £150,000 needing to find around £34,500 deposit along with all the other costs involved in purchasing a property.

Many first time buyers have been fortunate and been able to call for help from the bank of Mum and Dad which we are now told could start to be running dry and without this help things can look bleak for some.

Unfortunately the problem does not end once you have managed to get a deposit together. The next step is to find a friendly bank manager able to offer a mortgage to purchase the property. This is were many people could benefit from speaking with an independent mortgage broker or financial advisor especially self employed people
as they can offer invaluable advise prior to going through the hard ache of trying to get a deposit together or applying for a mortgage that might not best meet your needs.

This is where a rent to buy house can tick a lot of the boxes for those keen to find away to secure a home they can one day own without having to go through the pain of trying to find a mortgage and tougher still the considerable amount often needed for the deposit.

The rent to buy scheme first appeared some twenty years ago in the USA when we are told banks stopped lending to those wanting to buy a house that resulted in a property crash and the need for a new way to buy and sell house. Rent to own as it is also know was born and now popular in many countries around the world and at last available here in the UK.

Firsts time buyers do have other options to get on the property ladder with shared ownership property and government home buyer schemes which can be limited and in some cases may require a good credit history to get the loan or mortgage available. Key worker is also available to those working in some sectors that can include the NHS and some other government sectors.

These first buyer schemes can be of great benefit to some but may not help others who may be new to the uk or retuning back to the UK having lived oversees for some time and may no longer have a current credit report to call on or appear on the electoral roll often used for identification and credit checks

Rent to own cannot only help first time buyers it can be a great benefit to those that may have once owned a property but for a variety of reason sold the property and moved into rental and looking for a way back into home ownership.

Also an opportunity for many that feel once into there forties the change of home ownership may have passed them by. Well this is not the case according to Cambridgeshire based HappyHouseBuyer.co.uk

The old way to buy a house with a mortgage and big deposit like are parents may have done in the past no longer works for many with amount of money needed for a deposit often being more then the parents paid for there house many years ago.

More people will be asking what is rent to buy over the month and years to come as fewer people are in a position to purchase a property with a mortgage unless the banks relax the strict lending criteria that can see more people able to tick enough boxes for the computer to say yes and offer a mortgage with a lower deposit then current appears to be available.

More information can be found on how to rent to buy a house by visiting HappyHouseBuyer.co.uk where people can register free of charge.

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