Rent to buy Leeds (A 3 point guide)
In this brief guide, we will cover the rent to buy Leeds scheme.
What is the rent to buy scheme Leeds?
The rent to buy scheme Leeds is a scheme where you can rent a home at a discounted rate for a fixed period and then have an opportunity to buy a share of the home at the end of your rental period. The rent to buy scheme Leeds refers to the homes in Leeds which offer the rent to buy scheme.
How does the rent to buy Leeds scheme work?
The rent to buy Leeds scheme will offer properties, mostly through housing associations for 80% of the going market rent. This means you can save 20% towards a mortgage deposit. At the end of your rental agreement, you will have the option to buy some shares of the property using the shared ownership scheme. If you are unable to buy the home at the end of your rental period, your tenancy won’t be renewed. If your circumstances change during your rental period, then your tenancy may be reviewed.
You will need to get a mortgage and this means you will need to pass a mortgage lenders mortgage affordability requirements.
What homes are available?
Most of the rent to buy Leeds omes are homes offered through a housing association.
You can search for rent to buy Leeds properties by searching here.
Use a mortgage broker for your mortgage in principle
You may want to use an independent mortgage broker to help you get a mortgage on your new home.
Mortgage brokers are important as they can access mortgage products from across the whole of the market in some cases.
This could be over 11,000 mortgage products. This may have some advantages rather than going directly to a mortgage lender.
A mortgage broker will look to understand your financial circumstances and then provide recommendations on which mortgage products may be suitable for you based on your mortgage affordability.
After giving you these mortgage recommendations, most mortgage brokers will seek your consent to apply for a mortgage in principle.
This will allow you to shop for your home as more estate agents and sellers may take you seriously and it will also give you confidence that your mortgage is indeed a possibility before you make a full mortgage application.
Once you have found a home you want to buy and are satisfied with the mortgage offer for your mortgage then the mortgage broker will then look to get you a mortgage offer.
This will come with a key facts illustration document that details the features of your mortgage including how much you will pay per month.
It will also contain information on if there are any limits such as early repayment fees, or annual overpayment limits.
If you are happy with everything you can then go on to secure your mortgage with the help of a conveyancer.
Your conveyancer will manage the legal searches on the property to ensure there aren’t any issues with it.
They will oversee the sales agreement to ensure it is in your best interest, they will manage the transfer of mortgage funds, exchange contracts with the seller or their conveyancer, and set a completion date with the seller or their conveyancer.
This will then bring an end to the conveyancing process, at which point you will receive the keys to the house and move in.
If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.
You can also contact the debt charity “Step Change” if you are in debt and need help.