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Alternative ways to buy a home

Kieran Witt, 29 July 2023

Mortgages
Help to buy

What’s this article about?

In this Ask an Expert session, we cover the alternative ways to buy a home and are joined by Kirsty White, Head of Mortgages at Tembo and Chris Gladwin, from Wayhome.

About our experts

This month we invited Kirsty White, Head of Mortgages at Tembo and Chris Gladwin at Wayhome, to join us at the Kotini coffee table to help our home-buying community learn about the different ways they can get on the ladder.

Tembo is an award-winning, tech-focused mortgage broker that specialises in helping first-time buyers, movers & remortgagers bridge the growing affordability gap through specialist buying schemes. So they can get on the ladder sooner, or stay in the home they love.

Wayhome has created a new way to buy without a mortgage called Gradual Homeownership which is the new way to buy a home worth up to 10 times your income, with just a 5% deposit.

What we covered

An introduction to gradual home ownership

Chris from WayHome introduces the concept of Gradual Home Ownership. It's an innovative approach where you start with a minimum 5% deposit, buy part of the property and WayHome purchases the rest. You then rent the remaining part of the home from Wayhome, and over time, you can buy more of it, reducing your rent. It's a flexible approach to homeownership.

The limitations of gradual home ownership

Gradual Home Ownership has its limitations. It's currently only available in England, and the percentage of the property you can buy is capped at 40%. It also can't be used in conjunction with the stamp duty releif for first time buyers.

Exploring mortgage products

Kirsty from Tembo takes us through a variety of mortgage products. There's a range of mortgages for those in certain professions like being a teacher or working for the NHS, enhanced borrowing for those with a higher income, and family borrowing for those with family members who are able to support them financially. Shared ownership is also an option, allowing you to buy a portion of a property and rent the rest which is where Wayhome come in.

Options for those without external support

For those without family or friends to provide financial support, Kirsty mentions a few options, including income boost mortgages and the Skipton 100% mortgage. However, these options have strict criteria and may not be suitable for everyone.

Parting advice for First-Time Buyers

Kirsty advises first-time buyers to take their time and explore all options. She encourages seeking advice from a mortgage broker and asking lots of questions to understand the best path for individual circumstances. It's about starting the journey with the right guidance and patience.