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Rental payments taken into account by lender
Many would be home owners have complained in the past that mortgage lenders should take into account their unblemished history of paying a rental amount each month which is often comparative to an average mortgage repayment. With this in mind The Saffron Building Society has come up with a new mortgage product to help tenants who are currently renting a property.
The Saffron will take into account the history of rental payments as evidence that borrowers can afford a mortgage. The "Rent to Buy" Mortgage from Saffron Building Society will be offered to borrowers who are able to prove at least a 12-month record of paying rent. Saffron has said it would accept this as evidence of their ability to afford an equivalent monthly mortgage payment.
The mortgage would be available with only a 5 per cent deposit and would be subject to manual credit screening to ensure that no automatic credit score errors would occur. The mortgage rate would be fixed at 6.49 per cent until 2015 and would enable a renter who is currently paying £1.000 in monthly rental payments, to borrow up to £155,000. There is a fee of £195 on the product.
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Your property may be repossessed if you do not keep up repayments on your mortgage.
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Grovelawn Limited is Registered in England & Wales number 5030300. Registered Address: 98 Station Road, Sidcup, Kent, DA15 7BY.
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