Anyone heard of AToM Rent to Buy Mortgage?

curlynel1

Spotted a small article in the Metro mag two days ago so I had a quick look at the ATOM website

I think it's a product to be launched but it might be available already, I'm not sure

This product has been specifically designed for First Time Buyers who are able to prove that they have been successfully renting for the last 12 months. AToM will be offering a loan based on the applicants current monthly rent payments, subject to certain conditions.

Exclusive product details
• 2 year fixed rate at 6%
• Income multiples of 5.5 + 1 or 3.75 x joint
• Full status applications only
• Min loan £25,001
• Max loan £250,000
• No overhanging ERC’s

It sounds quite good. I don't know how much they charge for valuation and all the other fees though!
Anyone has heard of them?

HelpWhereIcan

All Types of Mortgages are what is referred to as a Packager- essentially a third party firm that has an underwriting mandate and authority to market the products of one or more lenders to brokers. Essentially, they act as a 'one stop' shop for brokers who have little or no experience of a certain market or who believe that the packager can offer a better underwriting service than going direct to the lender.

In this case, they are also operating as a 'branded lender' which means they have obtained funding from a lender to market a range of products under their own name, but using the lender's underwriting processes and criteria.

I beleive the lender in this instance is Rooftop Mortgages who specialise in sub prime and self cert mortgages. They are generally quite good with underwriting and can help a lot of people in many different situations. Rates can be on the higher side, although valuation fees etc are fairly standard.

It is being trialed for one month.

I am waiting for AToM to get more details of the product to me - they have been inundated with enquiries.

Another packager/branded lender called Advantage Homeloans is trialling a mortgage that is part traditional mortgage and part shared appreciation mortgage which also aims to help first time buyers.

I would say that it is likely that people should investigate more traditional options (such as affordability based lenders etc) before jumping into these schemes at the mo as rates I have been quoted are not the most attractive.

Hope this helps