Find your best local estate agent Start here
February 17, 2022
4 minute read
If you want to get on the property ladder, we’ve asked Wayhome to explain how to buy a house without a mortgage.
There are a few reasons. Stand by to be shocked though…
While lots of people can comfortably rent homes worth 8, 9, even 10 times their income, high street lenders lend a lot less than that.
Shockingly, the UK average ‘loan to income’ ratio for first time buyers is a measly 3.5 times income! This means going from renting to owning comes with lots of sacrifices. It might mean a home with fewer bedrooms, far away from friends and family, without a garden, and possibly in a less desirable area.
You’re left with a few options:
It can be harder for those of you are self-employed. Lenders typically need more convincing for the following reasons:
These factors may lead to less favourable mortgage terms for self-employed people.
It’s quite simple really. If you can’t borrow enough money to buy the home you need, you need someone to buy it with you. And that’s exactly what Wayhome does.
So, if you can’t borrow enough money, or you’re self-employed, or both, then Wayhome might be able to help.
You’ll need a minimum 5% deposit of at least £7,500.
Wayhome pays for the remaining 95%. They also split the buying costs such as Stamp Duty, legal, and property survey fees the same way. So, if you start with 5% of the home, you’ll only pay 5% of these costs upfront.
You could even end up buying a home worth up to 10 times your household income
You own your 5% and you pay rent on Wayhome’s 95%.
The rent you pay is market rate, so if the home you’re buying would normally cost £1,000 per month to rent, you would only pay £950 because you own 5%, and you only pay rent on Wayhome’s 95%.
You’ll never pay 100% rent ever again!
Over time, you can gradually buy more. Every time you buy more, you’ll rent less! Wayhome wants you to buy them out, own your home in full, and eventually stop paying rent.
And while you’re gradually buying more, you’re living in a home that you actually want with pretty much all the benefits of being an owner.
You can paint the walls, get a pet, change the carpets, put up your favourite pictures and plant trees in the garden knowing you’ll be around to see them grow.
More importantly, you have the security and safety of owning your own place. Nobody can ask you to leave as long as you don’t break the agreements.
Yes, you’ll still need a deposit because you’re part buying the home. But with Wayhome the deposit is much more manageable than if you were trying to buy with a mortgage.
You’ll need a deposit of between 5% and 30% of the home that you’re buying.
Wayhome pays for the rest.
When you hear part buy, part rent, you might automatically think ‘Shared Ownership schemes’.
What Wayhome is doing is very different. Here are some of the major differences:
There are many more differences. Wayhome wrote about them here.
Unlike Shared Ownership where you buy a new build home from a developer, with Wayhome they buy a home together with you from the open market (so homes that you see for sale on the internet or in an estate agent).
They do have some restrictions on the type of home that you can buy with Gradual Homeownership.
The homes should not be…
If you are, head over to wayhome.co.uk to sign up and see if they can help you buy a house without a mortgage!
March 25, 2025 
