The latest figures from the Bank of England have found that mortgage approvals in the UK over the last three months have significantly reduced and are predicted to fall by another 24% in 2024. With mortgage approvals widely reported as one of the biggest barriers currently facing the UK’s agents, many are looking for innovative solutions to present to their struggling clients.
Offering a widely desired alternative product where customers don’t need a mortgage is Your Home, which turns freehold properties for sale into part buy– part rent homes.
Helping hundreds of people buy last year alone, Your Home has now partnered with over 200 Estate Agents across the country, including names such as Leaders, Bradley Hall, LSL and Spicer Haart.
FLEXIBILITY AND CHOICE
Providing both flexibility and choice to buyers, customers who purchase their home in partnership with Your Home will put down a minimum of 25% deposit of the home’s full value, then pay rent to Your Home on the remaining share.
Not only benefiting the buyer, Your Home is also supporting Estate Agents with their sales. Acting as a cash buyer, and providing a £500 referral fee for every introduction that becomes a completion, Your Home helps agents stand out from their competitors.
GROUND-BREAKING
Agnieszka Skowronek, Your HomeAgnieszka Skowronek, Head of Your Home, says: “Your Home is a ground-breaking product, which is supporting both buyers and Estate Agents, especially with the current housing market.
“We’re thrilled that the past year has seen us partner with more Estate Agents than ever before, and we look forward to continuing to build these relationships and welcome new Your Home customers into their dream home.
“At Your Home, we understand how difficult securing a mortgage can be, as well as the impact that this is having on Estate Agents who may be struggling to find the right home for each buyer.
“Through our product, customers don’t need to have a mortgage, just a minimum deposit of 25% – and the remaining property amount is paid through a rent to Your Home.”
ALTERNATIVE
An alternative to both privately renting and buying on the open market, Your Home customers will have their rent set at capped at4.89% for the first year, then increasing by RPI + 0.5% every year. An example of these payments, a home with a property value of £250,000 could be purchased with the below figures:
- 25% deposit: £62,500
- Monthly rent on 75% unowned share: £764.06
- Your Home will invest £187,500
- Household income required in this example: £26,000
Your Home is well suited for a range of buyers, including first time buyers, existing owners looking to move, downsizers and those who are currently renting.
The scheme is also certified as Sharia compliant by the Islamic Council of Europe. Offering security to homeowners, Your Home offers a 999-year lease, and as and when buyers can afford to do so, they can purchase additional shares through staircasing – eventually owning 100% of the property and the freehold.
The process with Your Home is simple – after applying online and receiving an Agreement in Principle, buyers will be able to begin their property search through an estate agent for a for a home on the open market, in England, under £600,000.
Once making an offer based on Your Home’s agreement, the estate agent and Your Home team will progress the purchase, ensuring that on completion 100% of theproperty is purchased by Heylo and the agreed share is sold to the buyer at the same time.
