Your Mortgage Based On Your Rent Paid Now?
by NicolaCairncross on August 27, 2008
in Money Gym | Diaries
A new type of mortgage will allow borrowers to buy a property based on their previous 12 months’ rental payments, says All Types of Mortgages Ltd (AToM).
Rent-to-buy mortgages are aimed at renters who want to make the step to home ownership.
The rent-to-buy mortgages look at the applicant’s ability to manage their money and make rent payments on time.
The upsides
It may mean successful applicants can BORROW MORE than with a standard mortgage, which multiplies your salary by up to three times. So a single person earning £20,000 a year would borrow around £60,000.
With AToM’s rent-to-buy mortgage, you could borrow 5.5 times one salary, or 3.75 times two applicants’ salaries. a single person earning £20,000 a year would borrow around £110,000.
As with some popular standard mortgages, AToM offer a fixed rate for two years with no early repayment charge after this point.
READ MORE ABOUT RENT TO BUY MORTGAGES >>>
(With thanks to Sarah Rourke, the RatRace Escape Artist for posting this on our Money Gym Google Group)
