Forget Bad Credit with a Rent To Buy scheme that helps people with Credit Problems Get On The Property Ladder

If you have had credit problems in the past you’ll know that it is virtually impossible to get a mortgage to buy a house and you will be stuck paying dead rent forever. This short article explains how Rent To Own (also known as Rent To Buy or Rent 2 Own)  schemes can get you onto the UK property ladder and well on the way to owning your own home. We’ll look at how you can move into your own house without needing a mortgage at all and if you don’t need a mortgage you can’t fail a credit check, can you? Finally, we’ll look at some of the benefits of becoming a tenant buyer.

Getting a mortgage these days is hard enough. The lenders don’t want to lend at all and if they can find an excuse not to offer a mortgage they’ll take it. If you have a bad credit history, they’ll offer you a low loan to value (LTV) and a high interest rate. Coupled with that will be extortionate ‘arrangements fees’ of up to 3%-4%. Rent To Own schemes do away with the need for a mortgage completely because the initial part of the agreement will be a standard AST tenancy and you will have an Option to buy (a Purchase Option) the house later. Your purchase price is agreed at the beginning and is usually the current market price. You will need a small deposit of around 5% to 10%.

You start on the property ladder as a tenant with a Purchase Option. The Option Period will last for 3 to 7 years and gives you the legal right to buy the house at the agreed price. You can exercise your option at any time right up until the end. The Option Period will be set for long enough for you the clear your bad credit history at which point you should be in a position to buy the house in the normal way. So, you can see that under a Rent To Buy agreement, you are both a tenant and a buyer. In short, you are a tenant buyer.

As a tenant buyer, you have a number of benefits under the Rent To Buy scheme. You have an option but not an obligation to buy the house when you are ready. If your plans change, you are not obliged to buy the house and can simply walk away. You are able to get into the house by providing a very small deposit compared to what the banks would charge. You can treat the house as your own because you can be safe in the knowledge that if you spend any money on the house making improvements, your purchase price was agreed at the start of the Rent To Buy agreement. You will benefit from any house price rises.

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To get on the property ladder as soon as possible, get on our mailing list for the latest Rent To Buy properties in the UK. Get into your own house while the house prices are near the bottom of the market and start benefitting when house prices go back up. Get-On-The-Property-Ladder.co.uk are Rent To Buy & Rent To Own specialists and work with many of the best UK property sourcing companies to bring you some of the cheapest property available.