Nationwide has invested in Kettel Properties, a rent-to-own startup serving to first-time consumers unable to entry typical mortgages by saving a slice of their lease to construct the deposit.
With a minimal deposit of two per cent, Kettel works with prospects to buy the house they need to personal and lease it again to them at market charges whereas they save their deposit, construct their credit score rating and improve their affordability.
It really works with institutional property traders to buy the properties, that are single-family properties purchased for between £125,000 and £400,000 outdoors of London, after which makes use of its platform to handle all the course of.
The startup claims that by fixing their lease, financial savings and future buy value from the start, it units out a roadmap for first-time consumers to realize their aim of homeownership inside 36 months – making certain the worth of the property doesn’t enhance over time.
These utilizing the service are requested to save lots of a ten% deposit and will probably be given a regular reimbursement mortgage as they transition from renting to proudly owning. If the client decides to not buy, they nonetheless get to maintain their accrued financial savings minus a relisting price. The client has the choice keep on renting the property.
The agency has launched in Birmingham, Coventry, Leicester and the encircling areas, and is increasing to different cities throughout the Midlands and North over the following 24 months.