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Stephen is introducing a ‘Rent to Buy’ scheme which will allow first-time buyers to save for their dream home while renting brand new accommodation. The initiative will apply to the company’s developments in Errol and Brechin.
Tom Buchanan, Marketing Manager, explained, 'As lenders continue to demand significant deposits, we're hoping to provide some welcome respite for first-time buyers and ultimately accelerate the process of buying a home. So many people who are struggling to buy end up renting due to the current economic climate but they will still have the financial burden of securing a deposit. With this initiative, they are technically saving up for their deposit for a Stephen home by renting one first.'
On condition that they enter into an agreement with Stephen when rental commences, the initiative allows first-time buyers to rent for up to 24 months and, at the end of that period, receive 50% of the rental paid towards a deposit for their new Stephen home. This refund is used towards the deposit required by the lender, which is normally 5% of the full purchase price on a 90% Shared Equity mortgage.
An example would be with a 'Connan' house type at Stephen's Errol development where monthly rental would typically be in the region of £600 a month, totalling £14,400 over 24 months. The first-time buyer would therefore receive £7,200 towards the deposit for their new house.
The company will also fix the sales price of the home they are going to ‘Rent to Buy’ at today’s value, providing certainty in terms of budgets and inflationary rises.
First-time buyers will require to consult with a Solicitor and Financial Advisor before entering into the 'Rent to Buy' initiative.
For more information on the Rent to Buy plan, please contact A&J Stephen’s Sales team on telephone telephone 01738 620721, or sales@stephen.co.uk
