It’s our money so why do we pay so much?
It now takes an average of 10 years to save a deposit for a first home. It takes exceptional effort to save the necessary deposit so you can become a home owner.
So what happens once you’ve done all the hard work saving one? The banks cash in by charging you interest on your home for the next 30 years!
Here at Profit Free Homes we aim to beat the banks by giving you access to discounted, affordable homes with no interest costs involved. The cost of the home is what you pay for the home.
Our target – the high cost of first time mortgages
The cost of owning a home is beyond the reach of so many people and with interest rates staying high, things are only getting harder.
Although high street lenders are typically lending our own savings back to us, the cost of a mortgage is huge.
The banks have also been slowly increasing mortgage terms to 30+ years meaning the interest payable is even higher.
The result? Even a standard first time mortgage of £160,000 for a property outside of London costs you a fortune.
The examples below show the cost of buying a £160,000 home with a £144,000 mortgage (90% LTV) over a 30-year term.
The interest costs exceed the amount borrowed in every case:
There is a better way
We are building a better route to home ownership that removes these unfair costs. In this age of technology and connectivity, mortgages should cost nothing like the above. Especially when you consider, it is our money that is being lent.
You can read more on the history of community home ownership here.