The Cambridge Building Society has opened applications for its unique Rent to Home scheme, which returns 70% back to renters to give them a deposit towards their first home.
Rent to Home has been designed to make a difference by supporting first-time buyers who are able to afford to rent, but due to the higher cost-of-living in the region are unable to save enough for a deposit.
The scheme is the only one of its kind in the UK and applications are now open for its two newest properties in Longstanton and Northstowe.
The recently constructed modern end of terrace homes have plenty of space, open-plan living and low maintenance gardens, aimed at benefitting families, who might otherwise struggle to rent and save for a deposit at the same time.
Applications close on 31st May and a ballot will be drawn on 16th June to confirm two lucky applicants.
Every successful ballot winner has received a lump sum at the end of their three-year tenancy and used this as a deposit on a property they’ve purchased with a mortgage from The Cambridge.
Carole Charter (pictured), chief commercial officer, said: “I’m delighted that we’ve been able to grow our portfolio of rental properties by investing in these two family-sized homes to expand our unique scheme.
“Saving for a deposit of thousands of pounds is a challenge and it’s our commitment as an independent mutual to make it easier for people to take that first step on the property ladder.
She added: “It’s been fantastic to watch our previous renters get the keys to their own homes because of their ‘Rent to Home’ success and now that exciting prospect is waiting to happen for our next lucky applicants.”
The ballot winners will live in the Longstanton and Northstowe properties for a maximum of three years. After this term and upon securing a mortgage on their first property, The Cambridge will give them back up to 70% of the money they have paid towards their rent to use as a deposit on their new home.
Each property is rented at market rates of £1,300 and £1,450 respectively for a maximum period of three years, after which the tenants will receive 70% (estimated to be between £32,000 and £36,000) of the rent back as a home-buying deposit when they take a mortgage through the mutual.
