Rent to Buy in Durham: Move In Now and Buy Later, With No Deposit
Plenty of people in and around Durham can cover a monthly payment with no trouble. It is the deposit that stops them. Every year of renting is another year of watching prices tick up while the savings pot stays flat. Rent to buy is built to break that cycle.
With HomeNow you pick a new build home in the area, move in now, and rent it for two years. At the end of those two years you buy the home, and you get a rent refund worth 5% of its value to put towards your mortgage deposit. You do not need a deposit to move in.
The idea in one paragraph
Rent to buy, or rent to own, means living in the home you intend to buy before you own it, so a missing deposit is not a dead end. You reserve the home, move in, pay a fixed rent for the term, and buy at the end with that 5% contribution behind you. If you are ready to own but need a bit of runway to get mortgage ready, that is exactly who this is for.
How the two years work
There are four stages, and none of them involve a large upfront deposit:
- See if you qualify. Share your budget and circumstances. A patchy credit history does not rule you out on its own.
- Pick your home. Choose from new build homes across County Durham, including Bishop Auckland, Ferryhill and Spennymoor.
- Reserve and move in. You pay a reservation fee equal to one month’s rent, then settle in on a fixed monthly rent.
- Buy at the end. After two years you purchase the home, with the 5% deposit contribution helping fund the mortgage.
Why Durham stacks up
Durham packs a lot into a small footprint: the cathedral and castle at its heart, a strong university, and fast East Coast Main Line trains that put Newcastle and Teesside within easy reach. Just as importantly for first time buyers, new build homes across the county are genuinely affordable compared with much of England. Around Bishop Auckland the town has been reinventing itself in recent years, and Ferryhill and Spennymoor give you space and value within a short drive of the city. When home values are this reachable, the two year plan does its job.
Is it right for you?
Rent to buy tends to suit renters who are stuck in what we call the rent trap: the income is there, the deposit is not. It can work for you even if you have never owned before, if you have had credit bumps in the past, or if you are self employed and lenders find you harder to read on paper.
The money side, plainly
No big deposit to move in. You pay a reservation fee equal to one month’s rent to secure the home, then a fixed monthly rent for the two years. When you buy at the end, the rent refund worth 5% of the home’s value goes towards your mortgage deposit. Nothing hidden, and the monthly figure is set from the start.
How it differs from shared ownership
Shared ownership has you buying a slice of a property and renting the rest, with a deposit and mortgage needed from day one. Rent to buy is the other way round: you rent the whole home now with no deposit, and buy the whole home in two years with the 5% helping you get there. For a lot of Durham buyers that is the more straightforward path.
Homes around County Durham
New build stock across Durham changes as homes get reserved, with developments coming up around Bishop Auckland, Ferryhill and Spennymoor. Rather than list something that may already be taken, it is worth checking what is live right now.
Questions people ask
Is a deposit really not needed?
Correct. The only upfront payment is a reservation fee equal to one month’s rent. After that you pay a fixed monthly rent.
What is the 5% and when do I get it?
It is a rent refund worth 5% of the home’s value, paid at the point you buy after two years, and it goes towards your mortgage deposit.
My credit is not perfect. Should I bother?
Yes. Past credit issues are not an automatic no, so it is worth checking where you stand.
Do you only cover Durham?
No. HomeNow operates across England and Wales, and Durham is one of our active areas.
Take the first step
If you are renting around Durham and want to start working towards owning, the qualify check takes a couple of minutes and there is no obligation.
Your home may be repossessed if you do not keep up repayments on your Home Purchase Plan. HomeNow is a trading name of BOMAD Investments Limited, authorised and regulated by the Financial Conduct Authority (FRN 822295). A Home Purchase Plan commits you to buying the property at the end of the term, and house price growth is not guaranteed. Please read the risks before you apply.