A dad was “laughed out the door” by a mortgage broker after trying to buy a home with a £25,000 deposit.
Robert Payne, 44, bought his first home around 15 years ago but sold it in 2018 when he decided to give up his banking job and focus full-time on his “side hustle” laser-cutting studio.
Robert, along with his wife Aimee, 38, and their two children initially started renting, before deciding to get back on the property ladder.
But the 44-year-old was left stunned when a mortgage broker told him he “doesn’t stand a chance” of becoming a homeowner again, the Daily Mirror reports.
This is despite having a deposit of £25,000 and an “impeccable” credit score with no history of missed payments or other forms of debt.
He said: “I was working in London on a very good salary, but I just got fed up with it. There is more to life, so I went down to four days a week at the bank and then eventually resigned.
“Life is too short. I was spending 90% of my time knocking myself out to enjoy 10% of my life. We decided to relocate and I used some of the equity from my first home to spend on the kids.”
Robert and Aimee decided to look at other ways of getting a mortgage, including shared ownership and 5% deposit schemes, but said "none of them really worked for us".
Aimee eventually found a new scheme called gradual homeownership by Wayhome. The couple used this to get back on the ladder.
Gradual homeownership has been dubbed as an alternative to shared ownership allowing people to buy a "share" of their property with the option of increasing the size that they own.
After the buyer puts down their deposit, Wayhome buys the home in full by partnering with institutional investors.
You can purchase a home for as little as 5% deposit, but you pay rent on the rest of the property, which is owned by the investor, while Wayhome also owns a small percentage too.
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Wayhome says the scheme enables buyers to afford homes that are worth 10 times their household income.
However, gradual homeownership has been criticised for being more expensive for some homeowners – particularly as first-time buyers will need to pay stamp duty at the same rate as those who are purchasing a second home.
But for Robert, gradual homeownership has been a huge success and said the scheme "ticked all the boxes".
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