It uses 12 months’ proven rental payments as the affordability criteria to set the loan size, subject to an upper income multiple limit of 5.5 + 1/ 3.75 joint. Other product features include a maximum loan to value of 90 per cent and a two-year fixed rate of 6 per cent with early repayment charges of 6 per cent/ 6 per cent that do not extend beyond the fixed term, reverting to 2.99 per cent above LIBOR. The rent-to-buy mortgage is for purchases only, and caters for full status applicants that have had no rent arrears in the last 12 months and no CCJs. Maximum loan size is £250,000 and there is a completion fee of £499.
Helen Hymos, PMPA’s lender relationship manager, said: “The Rooftop rent-to-buy product will give a much needed helping hand to first-time buyers that would not fit many lenders’ first-time buyer requirements but have proved that they can regularly meet rent payment commitments. Anything that stimulates the first-time buyer market and allows more people to get on the first rung of the property ladder is beneficial to the mortgage industry, and the PMPA is delighted to be able to offer this innovative product through its members.”
Alison Beech, sales and marketing director at Rooftop, said: “We think this initiative will give an extra dimension to the first-time buyer sector and, in particular, help those who are already demonstrating their ability to meet their commitments."
