New mortgage uses rental payments to prove affordability

First time buyers in rented accommodation who want to get on the housing ladder have a potential new option thanks to an innovative new mortgage launched this week. The “Rent to Buy”  mortgage from the Saffron Building Society is available to first time buyers who can prove a 12 month rental history through a recognised letting agency and have a 5% deposit. The rental history is used as proof that the borrower can afford a mortgage with monthly payments of the same level. The Saffron’s sales and marketing director, John Eastgate, said: "There are many potential first-time borrowers who are capable of ...