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LoginGet a mortgage

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.

See if I'm eligible
British Bank awards 2023 Best Mortgage Broker winner
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Discover how much you can really borrow.

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Suitable for buyers & movers

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0% deposit required

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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.

Create my Tembo plan

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.

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Things to consider

Not every mortgage is for everyone. Here’s some things you should know before applying.

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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 FAQs

Frequently asked questions

See all FAQs

The application process

Get into your very own home in 4 simple steps

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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.

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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.

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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.

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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

See all schemes

On your own

Deposit Unlock

Purchase a new build home from a participating home builder with just a 5% deposit.

See details

With a guarantor

Income Boost

Add some or all of a loved one’s earnings to your mortgage application as a guarantor to boost your budget

See details

Family remortgage

Deposit Boost

Unlock money from a loved one’s property to gift to you as part of or all of your house deposit

See details

Learn more

Confused about mortgages? Read our guides for expert tips on saving, buying and the market.

See all guides

Other mortgage schemes

You can be snug in your very own home in 4 simple steps

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