By - Olu Olufote | 22-Jun-2019, 5 Min Read , 118
We've all been there or we know someone with a very good job, yet still struggling to afford to buy their home. The average Renter is currently paying 2 x in rent than they would if they owned the very same property. It sucks!
So why would someone who can afford 2 x in rent not be deemed ready to afford to buy their own home? Well, the answer is simply: That's how mortgages work. A mortgage is like any other loan from a Bank, you qualify for it only if you can prove that you don't need it! :-)
(Cheeky comment aside) To qualify for a mortgage loan, in addition to having a good income, the lender typically needs to see proof that you have at least these three things:
Having these criteria in place has helped to protect Mortgage Lender's interest (excuse the pun) for many years. If it works, why fix it, right?
Except that the world is changing
Little wonder the Institute of Fiscal studies reported that Homeownership has 'collapsed' among young adults with the chances of owning home now halved within the last 20 years.
So the world is changing, but are mortgage lenders keeping up?
I'll leave you to guess the answer.
We're using data science and machine learning to really understand this new Generation of Buyers and tailor a solution that works for them. Our advanced technology helps ensure we can give people access to own their own homes 3-5 years sooner than with mortgages.
We use technology to solve the deposit problem by allowing renters spread their deposit contributions in monthly instalments under the RenterBuyer programme, whilst living in the home they desire and without the need to save all upfront.
We're solving the credit scoring problem in a similar way by allowing our Buyers to build up their credit score over a 3-year period using our programme.
RenterBuyer effectively turns your monthly rent into both a deposit and a credit score record
And we love self-employed millennials. Our data-driven algorithm allows us to underwrite self-employed applicants better than any mortgage lender can!
As we launch soon, we've already seen a lot of interest with hundreds of customer applications each month; we have an amazing team in place and our soon-to-be launched digital assistant will help anyone get purchase-ready giving you a tailor-made score and a personalised checklist to guide you through every step from renting to owning.
There are over 10 million renting households in the UK and we're on a mission to help 50,000 of these become homeowners within the next 5 years.
We'd love to get your feedback as you help us build this mortgage-alternative solution together. Please join our community of Customers and Partners to share your thoughts and help someone you know own their home much sooner than they thought.