So we’ve been told by our financial advisor that there’s an incentive for tenants to buy the property they are currently renting which means some of their deposit can be met and made up to the 5% needed to buy? He’s apparently done this with a few people recently and it’s worked well. He advised if we did this, then used a tracker mortgage and overpaid by a certain amount for about 6/7 months we’d be at a point of 90% loan to value at which point he said we could then fix at a lower rate or look at buying something else?
The house where we are renting is too small really, it would be out of budget to extend and the roof is too shallow for a loft conversion. The 3rd bedroom is a box room so we will need to move regardless within the next 2/3 years either way (with all the associated costs of buying and selling then anyway). There isn’t much scope to improve it as the only thing that really needs work is the kitchen and it needs new carpeting throughout.
Firstly has anyone heard of the above scheme? Apparently we wouldn’t be tied in and could sell at any point after we buy. Secondly, my concern is we would be buying a house which is already too small for us, nearing the top end of our budget only to need to move in a few years time anyway?
Financially the incentive sounds amazing, but I can only see it would be worthwhile if we were planning to stay and not need somewhere bigger imminently?
Original plan was to buy a house with more space but that needs work and fix mortgage to stay for at least 3-5 years.
I’m so confused about what to do, I emailed the landlord earlier to see whether she’d consider selling which now I’m wondering if I should have?
Ideally we want to do what makes best financial sense with the above considerations? If anyone can explain to be in layman’s terms what the above means then please do 