Part buy, part rent
Build up equity in the home you rent
Get your foot on the property ladder without needing any house deposit saved up through a No Deposit Rent to Own scheme.
Suitable for buyers & movers
0% deposit required
Maximum property price £650,000
How does it work?
An alternative to traditional renting, a No Deposit Rent to Own scheme is a way to build up equity in a home without needing any deposit. So you can start building up property wealth without having any cash saved up.
A private company will buy the home on your behalf, which you will then rent from them at a fixed amount for a set number of years. Your monthly payments are made up of your rent - which is charged at market rates (around 6%) - plus an extra 1.5% which is put towards paying off the property.
When you buy the home off the private company later on, the buy-back price will be based on what they paid for it (plus any costs they incurred buying it) minus all the money you've put towards the property each month.
Plus, you can decide to buy more of the property at any time at the original property price, reducing the buy-back price even more. Or, if you're not ready to buy your home at the end of your lease, you can extend it to continue renting.
To see if you're eligible, create a free Tembo plan for a personalised recommendation.
Why Tembo?
We help buyers, movers and homeowners discover how they could boost their affordability in 3 simple steps. It’s why we’re the UK’s Best Mortgage Broker.
Things to consider
Not every mortgage is for everyone. Here’s some things you should know before applying.
What are the benefits?
Get on the ladder with 0% deposit
Saving up for a house deposit is often the biggest hurdle to homeownership. With this scheme, you can live in a place of your own sooner, without having any deposit saved up.
Build up equity while renting
Up to 25% of your rent payments each month will go towards reducing the eventual price you pay to buy the home. If you want to buy more of the property at any point, you can at the original property price (plus costs). When you decide to leave you can either find another buyer, or walk away with the equity you've accumulated - plus any increases in property value.
Your monthly payments are fixed
Your monthly payments are fixed for the duration of the lease, which will be between 3 to 7 years. The longer your lease, the more you reduce the price you pay for the home at the end. You can leave your lease at anytime if you find another buyer, but you will need to pay a 1% early exit fee.
Risks and considerations
You must earn at least £30,000
To qualify for the No Deposit Rent to Own scheme, you must have a minimum household income of £30,000 (before tax).
The property must meet the buyer's requirements
The property must be a house which can be occupied straight away - it cannot be a flat, buy to let property or a home that requires refurbishment or renovation. If the EPC rating of the property is less than C, within your first 12 months you will be required to upgrade the home at your own cost.
You'll be tied in for the length of the lease
You'll agree to an initial lease for the property, which will be between 3 to 7 years. If you want to leave before the lease has ended, you'll need to find another buyer and pay a 1% early exit fee.
You aren't the owner of the property
As a private buyer purchases the property on your behalf, until you buy the property off them you are not the owner of the property.
Got questions? We've got answers
See all FAQsFrequently asked questions
The application process
Get into your very own home in 4 simple steps
Make a Tembo plan
In under 10-minutes, we’ll check your eligibility for a No Deposit Rent to Own scheme, as well as our other buying schemes. Plus, you’ll get a personalised recommendation including interest rates and repayments.
Talk to an expert
Book a call with our mortgage experts to start the qualification process and cover any questions you might have. If you want to move ahead, we'll introduce you to your account manager from the private company.
Find a property
The private company will arrange a decision in principle for you to confirm your final budget, and then it’s time to find a home! You'll need to ensure the property you choose meets their requirements, but your account manager will be on hand to support you throughout the search.
Make home happen
Once you’ve found a property, your account manager will work with you and your chosen conveyancer to purchase the home outright.
Similar schemes
Explore our other buying schemes to see alternative ways to get on the ladder
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Deposit Boost
Unlock money from a loved one’s property to gift to you as part of or all of your house deposit
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Confused about mortgages? Read our guides for expert tips on saving, buying and the market.
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