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2.5% Home Scheme

In response to the prevalent difficulty of raising deposit by first time home buyers, sMighty Home has launched its 2.5% Home Scheme which will assist more people realise their home ownership dream, especially young professionals and working class people.

So if you are tired of paying “dead rent” but you don’t have a big deposit to get a mortgage, you might still be able to get on the property ladder.

There is no credit scoring – However, in order to verify your identity and ability to make monthly payment, we will use the services of an independent referencing company to do credit check and obtain satisfactory references from your employer, previous or current landlord.

Low upfront fee – Once we get satisfactory reference and credit check, you will be able to move into your new home after paying 2.5% Membership Fee which forms part of the purchase price.

Fixed monthly payments – we will work with you to determine what is affordable and monthly payment is fixed, even if interest changes.

sMighty 2.5% Home Scheme is a stepping stone towards home ownership without first qualifying for a mortgage. The scheme allows you to build up equity in your home and reduce the amount of deposit you will need in future to get a mortgage.

You will be required to get a mortgage to complete the purchase at the end of the scheme which typically is 4 years. The scheme is flexible and offers terms to suit different kinds of buyers such as:

– 2.5% Membership Fee which goes towards the purchase price.

– It allows you to improve the value of your home.

– There is an agreed, fixed purchase price upfront and you can build up equity in your home to qualify for a mortgage to complete the purchase, knowing that the purchase price of the house won’t change.

– It allows you to make additional payments to reduce the purchase price faster without incurring any penalty.

2,5% Home Requirements: 
(i) £345 non refundable Management Fee
Payable after viewing a property and you make an application to buy it. Management Fee covers the cost of: Processing your application, obtaining references, credit checks, tenancy agreement, check-in and administration of the scheme.

(ii) 2.5% of property value or £1,500 down payment (whichever is higher)  – Payable after you’ve moved into your home. It covers the cost of sourcing your home and fixing the rent and purchase price for the duration of your Assisted Ho me Ownership Scheme.  Down payment goes 100% towards the purchase price of your home. 

(iii) Monthly rent  – every month tenants pay their rent in full and on time, they earn between 10 and 20% of the rent as Monthly Credit . Monthly Credit is an incentive to help tenants build up equity and reduce the amount of mortgage they need to complete on the purchase of their home.

Please Note:
The down payment is not a security deposit. It is a non refundable payment that goes towards the purchase of your home, i.e. credited 100% to reduce the purchase price of your home.

If you can’t or decide not to complete on buying your home, you are free to sell your right to buy it and you could make profit if your home has appreciated in the value, otherwise you will lose all the money you have paid for it.

Register today to benefit from our 2.5% Home Scheme

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