Wish You Could Buy?: Mortgages for Tenants

As a result of high property prices in the UK, many people are unable to meet the affordability or deposit requirements of a mortgage, leaving them with no option other than to rent.

While it does seem difficult to move out of renting into home ownership in the current financial climate, the following tips could help you set your first step on the property ladder.

How Renting Affects Your Ability to Buy a Home

Renting is a common reality for many people in the UK, especially in areas with high property prices. However, renting can also make it more difficult to buy a home, depending on your circumstances.

How Rent Payments Affect Your Mortgage Application

When you apply for a mortgage, lenders will look at your income and outgoings to assess your affordability. Rent payments are not automatically recorded on your credit record, so they won't have a direct impact on your mortgage application. However, if you have a history of missed rental payments, this could be a red flag for lenders and could affect your chances of getting a mortgage.

How to Improve Your Chances of Getting a Mortgage While Renting

There are a few things you can do to improve your chances of getting a mortgage while renting:

Save up a large deposit

This will show lenders that you have a significant amount of money saved up, which will make you a more attractive borrower.

Get a good credit score

This will show lenders that you're a responsible borrower and that you're likely to repay your mortgage on time.

Consider a government-backed mortgage

These mortgages are often available to borrowers with smaller deposits, so they could be a good option for you if you're renting.

Work with a mortgage broker

A mortgage broker can help you find the best mortgage for your circumstances.

How to Pay Rent and a Mortgage at the Same Time

It is possible to pay rent and a mortgage at the same time, but it's important to make sure that you can afford both payments. If you're considering this option, you should speak to a mortgage broker to get advice on your individual circumstances.

How to Use a Buy-to-Let Property to Get onto the Property Ladder

Another option for renters who want to buy a home is to use a buy-to-let property. This means buying a property to rent out to tenants, while you continue to rent yourself. This can be a good way to build up equity in a property, which you can then use to buy your own home.

How Rental Arrears Affect Your Credit Rating

If you have a history of missed rental payments, this could damage your credit rating. This is because missed payments can be recorded on your credit file, which lenders will see when they assess your application for a mortgage.

How to Get Help with Renting and Buying a Home

Whether you’re a first-time buyer or not, there are a plethora of benefits to using a mortgage broker to help you secure the right deal. A mortgage broker with specific experience in helping those struck in a rental rut to find a workable solution will provide you with the most relevant advice.

With a professional mortgage broker in each of our 10 offices, and with access to 1,000s of mortgages from over 90 UK lenders, we have the knowledge and experience to secure the best mortgage deal for you. 

Simply use this form to get in touch and let us know exactly what you need. One of our experts will be in touch to help achieve your homeownership goals.