Rent to buy scheme

michael3429

i've come across rent to buy scheme and i'm intested to know as much about it as possible. I understand the starting out money. Providing your credit report and having an agreement of upto 5 years to rent and then buy with you ititial starting out money and rent coming off the final price in the 5 years.
BUT
what happens after 5 years and you still cant get the mortgage to buy. Do they offer new deals or so you lose out there and then????? thats the part i cant find any info on.

Thanks

Michael

michael3429

can't find anymore info on this, anyone???

agrinnall

Having looked at a couple of websites I suspect the providers are hedging their bets by not saying what will happen in that situation, and that seems reasonable given that nobody knows what will happen in the housing market in the next 5 years. I'm not sure what you mean by 'lose out'; either you can afford a mortgage, or you can't, and you have to carry on renting. I don't see that you've lost anything.

michael3429

what i meant by losing is if we put in 5k-10k starting off money then agree monthly rent for 5 years and final sale price of say 100k. After the 5 years i am still unable to get a mortgage for whatever reason does this end the agreement and they keep 5k-10k or do they renegotiate. Do they end all agreement and you leave the house even if you have spent money on the house yourself.
in the initial 5 years you can do what you want to the house as if it was yours, people wouldnt want to put to much value back into it as they are not certain of getting the mortgage after 5 years. Is there some kinda deal with a mortgage lender that see's this as favorable