First Time Home Buyer News: Rent-based Loan Helps First Time Buyers onto First Rung

05-Jul-2006

Created with first time buyers in mind, the new mortgage from All Types of Mortgages (AToM), allows renters to buy property based on their rent payments.

Named the Rent to Buy Mortgage, the product is aimed at helping first time buyers who are prevented from getting onto the first rung by lending restrictions which limit borrowing to three times their earnings.

Aspiring homeowners can now take out a mortgage based on rent payments they have made over the last 12 months, which demonstrate their ability to manage finances.

Dale Jannels, sales and marketing director at AToM, said: "Many people can afford to borrow more as they have well controlled finances and have been managing significant rental payments for some time, also, as property prices continue to rise, many people are desperate to get a home of their own."

AToM will advance up to 5.5 times the salary of a single buyer and 3.75 times the combined income of a couple, with the maximum loan offered being £250,000.

The mortgage has a fixed rate of six per cent for two years and requires a ten per cent deposit.

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