Two Isle of Man housebuilders have partnered with Own Homes to offer a rent-to-buy scheme.
Hartford Homes and Dandara will make selected new-build properties available through the scheme, which is aimed at people who could afford a mortgage but have not saved the deposit required.
Own Homes will purchase the selected property, allowing participants to move in while building towards a deposit through their monthly payments. The aim is for them to buy the property using a conventional mortgage within five years.
Participants will need to make an initial payment, which Own Homes said would help secure their chosen property and contribute towards their future deposit. Applicants must also demonstrate at the outset that they could qualify for a mortgage on the property once the deposit has been saved.
The scheme will cover selected new-build homes worth up to £600,000 across the two developers’ Isle of Man developments. Applications are due to open in early November.
Own Homes was founded by Isle of Man-based Chris Lee (pictured), who previously ran the UK Government’s Help to Buy: Equity Loan scheme in England.
Chris said: “I live on the Isle of Man, so I see this issue first-hand. There are many people with good jobs and incomes who pay a lot in rent every month but still cannot save enough for a deposit. That is where Own Homes is designed to help.”
A spokesperson from Hartford Homes said: “There is a group of prospective buyers who can find themselves caught between the support available through the first-time buyer scheme and the requirements of a traditional purchase. Own Homes offers another route for those buyers and gives more people the opportunity to work towards owning a home.”
A spokesperson from Dandara said: “We’re pleased to support initiatives that give local residents more choice in how they move towards homeownership. Own Homes provides an alternative route for eligible buyers and could make homeownership more accessible to people who may otherwise struggle to save a traditional deposit.”
