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Hanley Economic Launches Nationwide Zero‑Deposit ‘Rent to Own’ Mortgage

Borrowing is capped at 133% of a renter’s current payments to limit loan size for tenants on cheaper leases.

Overview

  • The building society expanded its 100% mortgage beyond a Stoke‑on‑Trent pilot to buyers across the UK.
  • Borrowers can access up to £350,000 at a 5.79% five‑year fixed rate, subject to standard credit checks.
  • Eligibility requires a minimum £25,000 household income and proof of 12 months of full, on‑time rent payments.
  • Based on the average UK rent of £1,366 a month, the cap implies potential mortgage payments up to about £1,817.
  • Industry advisers say the deal can help disciplined renters but warn of higher costs and negative‑equity risk, urging comparisons with options such as Shared Ownership or low‑deposit mortgages.