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Who is StrideUp?
StrideUp is a revolutionary new company who wants to make home ownership affordable and accessible for everyone. We believe there should be an easier path to buying your home; one that doesn’t involve spending years renting while trying to save a deposit, or overburdening yourself with a large mortgage.
Is StrideUp regulated?
Yes, StrideUp is authorised and regulated by the Financial Conduct Authority. Our firm reference number is 785299.
What's the difference between StrideUp and Shared Ownership schemes?
Whilst we share some similarities with Shared Ownership schemes, we are a home finance provider first and foremost, i.e. we don’t build homes, rather we let you pick the home you want and we help you buy it. But like in Shared Ownership, we own a share of the property, which you can can always buy back from us when you are able to afford it.
How is this different to a mortgage?
StrideUp provides an alternative to getting a mortgage to buy your home. With StrideUp, you own a share of the home you can afford today and StrideUp owns the remaining. You always have the flexibility of buying back our share when you are ready but like in a mortgage it’s always your home to live in and enjoy!
StrideUp's Home Purchase Plan
What is a Home Purchase Plan?
A Home Purchase Plan is a regulated product that allows you to purchase a property to live in for the term of the plan while owning a share of it. To acquire that share you will contribute a portion of the purchase price of the property (your deposit) while StrideUp provides the rest, and you'll make monthly payments throughout the term of the Plan which include a principal payment which increases your interest.
What can I use StrideUp's Home Purchase Plan for?
StrideUp's Home Purchase Plan is only available for owner occupied properties, i.e. where you will live after you buy a property with us.
What is the term of the arrangement?
The term can vary depending on the product on offer. We offer products up to 25 years.
How does ownership work under the Plan?
You and StrideUp will both have a beneficial interest in the property in proportion to our respective inital contributions. StrideUp will hold the legal title to the property on trust for you and itself and grant you a long lease to live in the property. Your rights to live in the property will be protected under the Lease which will be registered at the Land Registry. You will always have the right to buy StrideUp's share in the property.
How much of a share of the property will I own?
This will depend on the product you choose/we offer. In essence, a product with a 60% share means you will acquire a 60% share in the property by the end of the Plan. This will be through a combination of your initial deposit and the ongoing principal payments you make during the term.
What will my monthly payment consist of?
Your monthly payments will consist of two parts: a "rental" payment on the total amount financed by StrideUp and a principal payment which increases your interest in the property. As your interest in the property increases your rental portion of the payment will go down.
What is the rate of my rental payment?
Your Plan will have a fixed payment rate for an initial period during which your payments will not change, however after this your payment rate may change depending on the Plan selected.
How can I own 100% of the property by the end of the term?
If you keep up your monthly payments you will own the share of the property described in your Offer Letter. If you want to own 100% of the property, you will need to purchase StrideUp's share of the property during the term (Staircasing) or at the end of the Plan. Once you've purchased 100% of the property, the legal ownership will be transferred to you.
What happens if I want to sell before the end of the term?
You're welcome to sell before the end of the term, however an Early Repayment Charge will be applicable if you were to sell during your intial fixed rate period.
Security and Trust
Do I get legal advice on StrideUp's Home Purchase Plan?
Yes, you will need to seek independent legal advice prior to entering the Plan. Your solicitor will advise you on the arrangements and should answer any questions you may have.
Is any regulatory protection available to me?
StrideUp is a member of the Financial Services Compensation Scheme (FSCS). You may be entitled to compensation from the FSCS if we cannot meet our obligations. Advising and arranging of Home Purchase Plans is covered for up to 100% of the first £50,000. For further information, please refer to www.fscs.org.uk
Fees and Costs
Is there an application fee?
No, submitting an application is completely free.
Are there any arrangement fees?
Yes, there is a one-time arrangement fee of £750 which is only payable if you decide to progress to a formal offer. Getting a Decision in Principle is absolutely free.
Do I need to pay for buildings insurance?
In order for us to offer our Home Purchase Plan at a competitive rental rate, StrideUp does not take on the responsibility of maintenance and insurance as part of the lease agreement. You treat the property as your own and you are therefore responsible for buildings insurance and maintenance.
Are there any fees at the end of the agreement?
If at the end of the agreement you have purchased 100% of the property there will be a Land Registry charge to transfer the legal title into your name. If at the end of the Plan you are selling the house, you will need to pay for a valuation and any estate agency fees.
Any other costs I should be aware of?
You will receive a full list of fees and charges when you receive a Decision in Principle.
How do I find out what I can afford to buy with StrideUp?
You will need to register on our website and create an account. To get a Decision in Principle (which will say how much we can finance with you) you will need to fill in our online application form and provide personal information including income and outgoings so it will be useful for you to have this information to hand.
How long is the Decision in Principle valid for?
Can I negotiate my Decision in Principle?
If you believe your Decision in Principle was based on incorrect information please let us know.
Can I change my information once i've submitted an application form?
If your circumstances change or you realise you have made a mistake in your application, please give us a call or send us an email so that we can update your details. If the Decision in Principle has been sent already, we may re-issue another one depending on the circumstances.
What happens to my information?
Do you run a credit check? Will this affect my credit score?
We will run a credit check (called a 'quotation search') when providing a Decision in Principle which does not impact your credit score and can't be seen by other lenders (but it will leave a soft footprint which you will be able to see). If you decide to proceed and apply for a formal offer from us, we will then run a full credit check while assessing your full application. This will leave a hard footprint which other lenders will be able to see and can impact your credit score.
I am self employed, can I still apply?
Yes absolutely. We'll need a minimum of two years of verified income history and accounts.
Some of my income is variable, will you take that into consideration?
Variable pay like bonuses and overtime are taken into consideration but they will need to be verified. You should include this in the relevant section in your application.
Do I need to be a UK citizen to apply?
You need to be a UK/EEA National or have Indefinite Leave to Remain and been living in the UK for at least 36 months at the time of application.
Am I eligible if I already own a property?
Yes, as long as the property you purchase with StrideUp will be your main home.
What if I already have loans outstanding?
Having a loan doesn't disqualify you from using StrideUp, however it may impact the amount we can offer you.
I am starting a new job, when is the earliest I can apply?
You will need to have been in a job for at least 3 months or finished your probation period before you can apply.
Is there a deposit requirement?
Yes, there is a minimum deposit requirement of 10% of the property purchase price.
Can I use the Government's Help to Buy: Equity Loan with StrideUp?
This is not currently available with StrideUp.
Can I use gifts from family or friends for a deposit?
Yes, the person giving the gift will need to sign a document (gift certificate) confirming this money is a gift. In addition, we will need to verify their identity and undertake money laundering checks.
Finding a property
Do you have properties I can choose from?
We don't have properties that you choose from or that we place you in. Once we've given you a Decision in Principle, you are free to go into the market and chose a property that you like best!
What do I do when i've found a property I like?
Once you have found a property you like and you've viewed it, you can submit the details of the property to us through your portal online.
Can it be a new build?
Yes we are happy to consider new builds but they may be subject to some extra scrutiny.
Can it be a council house or under the Right to Buy government scheme?
Unfortunately not, StrideUp currently doesn't work with council homes or Right to Buy properties.
What do I say to the estate agent?
StrideUp is a regulated home finance provider, and replaces the mortgage you would get from the bank. Estate agents should treat StrideUp as they would a bank.
What if I disgree with your estimated value?
If the agreed price of the property is above our valuation we will not be able to proceed with the purchase.
Do you negotiate with the estate agent?
We give you our estimate of the value of the property, but it's up to you to negotiate and get the best price under the valuation we provide.
Can it be Freehold or Leasehold?
It can be either! But please be aware for leasehold properties it has to have at least 90 years left on the lease.
What if I dont find a property within my 90 day offer period?
You may need to submit your application again just in case your circumstances have changed. Please give us a call.
Do I get advice on this product before I proceed?
Yes, once you've filled out an application and received a Decision in Principle you'll have an appointment with one of our advisors who will give you advice on the best product and whether the Home Purchase Plan is suitable for you.
Why do I need solicitors and who pays for them?
The solicitors are there to give you advice on the legal contracts and carry out the conveyancing on the property. Their duty of care is to you and it is therefore your responsibility to pay them.
Can I choose my own?
We have a panel of solicitors you can chose from, they are all familiar with the StrideUp product and paperwork which makes the process smother and cheaper.
Why do I need a survey?
Having a survey done benefits both of us, it will give you a heads up on any potential problems with the property while for StrideUp it confirms the property's value so we can provide the financing you need.
Where do I find a suveyor?
You can chose a surveyor from our panel, we will instruct them to carry out a survey on your property and they will contact you regarding payment. The cost will depend on the size of the property.
What is Stamp Duty?
Stamp duty is the tax a homebuyer has to pay whenever they purchase a property. For first time buyers purchasing a property under £300k, there is no Stamp Duty to pay.
Who pays for it?
It is your resposnibility to pay for the stamp duty when you first enter the Home Purchase Plan.
Staricasing and Overpayments
What is Staircasing?
Staircasing allows you to increase your share of the property. You do this by agreeing to increase your monthly payments so that you acquire some or all of remaining share in the property by the end of the Plan.
Lets take an example. Assume you entered into the Plan with a 10% deposit and a 60% share of the property. After a year your income has increased - you can then apply to increase your monthly payments such that your share of the Property increases to, say, 80% by the end of the Plan. Do remember that as you are committing to increase your monthly payments we will need to check whether the new payments are affordable for you and may ask for evidence to establish this.
What is an Additional Payment?
Additional Payments are lump sum payments that you can make to acquire some or all of StrideUp's interest in the property without increasing your monthly payments. They are essentially one-off payments.
Once I'm living in the property, how do I buy StrideUp's share?
You can either Staircase or make Additional Payments. Please note that if you do neither, you will own the share of the Property that is stated on your Offer Letter, i.e. you will not own 100% of the interest property at the end of the term.
When I Staircase or make Additional Payments, what price am I paying for StrideUp's share?
The price of StrideUp's share will follow the market value of the property, and therefore you will be buying more at the prevelant market value. So if prices increase you will need to pay a higher amount. You will always pay at least the initial price paid for the Property. We do this so that you're able to select the property that works best for you and we're able to offer our product at a reasonable cost to our customers.
How soon can I make Additional Payments or Staircase?
You can do either immediately after your Plan starts. There may be a maximum of how much Additional Payments you can make during your initial fixed term. This information will be available in your Offer Letter.
Do I have to have bought the entire share of the property by the end of the agreement term?
By the end of the Plan if you haven't made any Additonal Payments or Staircased you will own the share of the Property stated on your Offer letter. You will then need to purchase the remainng share if you still want to stay in the Property or you can then choose to sell the Property and StrideUp will receive its share of the sale proceeds.