The Cambridge announced new forward thinking housing initiative
17 April 2019 • Products & Services • Corporate • Our Insights
Our new initiative, Rent to Home is our way of continuing to make the difference and actively support those who need extra help with buying their first home.
We believe this is the first of its kind by a building society. The initiative is designed to support first time buyers who are able to afford to pay a monthly mortgage but with other financial commitments saving for a deposit is hard.
This community focused initiative starts with us renting out two of our own refurbished flats to tenants who have applied to the scheme. The successful applicants will be able to rent one of the flats at market rate for a maximum of three years. At the end of tenancy, if they are ready to buy their first home and choose a mortgage from us at The Cambridge, we will return 70% of the rent paid over the course of the tenancy to them, to use as a deposit on their first home.
As an example, a lucky applicant moves into our rental home and pays market rate rent of £825 per month. They stay for three years, before they’re ready to purchase their own home. After the maximum of three years, £20,790 is returned to them to put towards the deposit for their new home purchase.
Chief Executive Stephen Mitcham said: “Budgeting to save thousands of pounds for a deposit is hard, especially for those who earn an average wage in the Cambridge area. As a community-focussed organisation we recognise our responsibility to the people around us. Profit making isn’t the objective of this launch, we’re simply doing it to make it easier for people who need help the most to make that first step into home ownership.”
“Through pioneering and truly unique initiatives like Rent to Home, we are staying true to our original purpose which has enabled us to help people have a home of their own over the past 160 years, and will ensure we can keep supporting people for many more years to come.”
Click here to learn more about Rent to Home