With house prices so high many people find it difficult to save up a deposit and buy a home. In the meantime they're spending lots on renting - money that could be going towards their own place!
StrideUp has launched a completely new way of buying a home to make it more affordable and accessible. It's a bit like a mortgage and a bit like shared ownership. You put down a deposit and we'll actually buy the property with you. You make monthly payments - basically renting our part of the property and gradually buying it from us. There will be a bit left over at the end (20% of the property, which we call the Equity Share) - whenever you're ready you can make additional payments to buy this from us.
So comparing StrideUp to a regular mortgage lender:
we're also a home finance provider, meaning we provide the money you need to buy a home
we are authorised and regulated by the Financial Conduct Authority (FCA)
you can choose a property of your liking from the open market (subject to eligibility)
you can buy a home by putting down a deposit (minimum 10%) and making monthly payments (towards renting our share and buying more of the property from us)
Where we're different from a mortgage:
we don't lend you any money, rather we jointly buy the property with you
if house prices fall and you have to sell your home, we actually share in some of this loss with you
if you make the monthly payments (i.e. the minimum amount each month), by the end of the term you will own 80% of the property (the Buyout Share) but you'll have to make additional payments to purchase the 20% Equity Share.
Your home may be repossessed if you do not keep up the payments on your home purchase plan.