Frequently asked questions
Everything you need to know before starting your pathway to ownership.
What is Deposit Bridge, and how is it different?
What is Deposit Bridge?
Deposit Bridge lets you move into a home today with a defined option to buy that same home in five years.
You pay a fixed monthly living payment for the five-year agreement. If you decide to buy at the end, you receive a 10% discount on the home's independently assessed market value, which can be used as your deposit*.
During the five years, you don't own the home or build any equity. Ownership and equity only come if you decide to buy at the end.There's no obligation to buy.
Why does Deposit Bridge exist?
For many people, the challenge isn't affording a home month to month. It's saving a meaningful deposit while continuing to pay rent and everyday expenses.
While you're trying to save, prices rise and deposit requirements increase. The goalposts shift, and plans get delayed.
Deposit Bridge was created to offer a different pathway. It gives you stability now, with the option to buy later, without needing to build a separate cash deposit alongside your monthly living payments.How does Deposit Bridge work?
Choose a home from our website and we† buy it.
Before you move in, you'll pay a purchase option fee equal to 1% of the home's value. This gives you the defined option to buy the home later, if you decide to.You'll then move in and pay a fixed monthly living payment for five years. While you live there, we† take care of the structure of the home and you're responsible for day-to-day upkeep.
Near the end of the five-year agreement, you'll decide whether to buy the home or move on. The home will then be valued by an independent surveyor.If you decide to buy, you can buy it at a 10% discount on its independently assessed market value. This can be used instead of a traditional cash deposit*.
If you decide to move on, the home will be sold. Once it's sold, you may receive a payment to support your next move**.
How is it different from renting?
With traditional renting, you're living in someone else's home and there's no option to buy it. Rent typically increases year on year, and if you decide you want to buy a home, you'll need to save a deposit separately while continuing to pay rent and cover your everyday expenses. When your tenancy ends, the arrangement simply ends.
Deposit Bridge is structured differently.
You move into a home with a defined option to buy that same home after five years. Your monthly living payment is fixed for the full five-year agreement, so you know exactly what you'll pay. If you decide to buy, you receive a 10% discount on the home's independently assessed market value, which can be used as your deposit*.
If you decide not to buy, you can move on. When the home is sold, you may receive a payment to support your next move**.How is it different from Rent to Buy?
Rent to Buy is a government-backed scheme, usually offered through housing associations. It lets you rent a home at a discounted rate for a fixed period, typically up to five years. The lower rent is designed to help you save towards buying in the future.
However, there's no guarantee you'll be able to buy the home you're living in at the end of the agreement. Rent to Buy helps you prepare for ownership, but it doesn't secure a pathway to a specific home.
Deposit Bridge works differently.
Instead of lowering your rent so you can save separately, you move into a home with a defined option to buy that same home after five years. If you decide to buy, you receive a 10% discount on the home's independently assessed market value, which can be used as your deposit*.
In short, Rent to Buy helps you save towards ownership. Deposit Bridge gives you a structured option to buy the home you're already living in, with a built-in deposit alternative.How is it different from Gradual Homeownership?
Deposit Bridge replaces our previous Gradual Homeownership product.
Gradual Homeownership was built around buying a home together with our funding partners. You bought an initial share based on what you could afford and gradually increased your ownership over time.
Deposit Bridge works differently. It isn't a co-buying model. Instead, you move into a home with a defined option to buy the whole home after five years. If you decide to buy, you receive a 10% discount on its independently assessed market value, which can be used as your deposit*.
Over 200 families moved into homes through Gradual Homeownership, and it helped shape what we're building today.
Deposit Bridge is the next step in our mission to reinvent homeownership.
What will I need to pay?
What will I pay upfront?
You'll pay a purchase option fee equal to 1% of the home's value.
This isn't a deposit. It simply secures your defined option to buy the home later, if you decide to.
The fee is paid just before you move in and isn't refundable.
There's no obligation to go on to buy the home.How does my monthly living payment work?
Your monthly living payment is based on the value of the home you choose and is fixed for five years.
It won't increase during that time, so you always know what you'll pay.
Bills like utilities and council tax aren't included and are your responsibility, just like any other home.Who pays Stamp Duty?
When you move in, we† pay the Stamp Duty because we're the ones buying the home.
If you later decide to buy it from us, you'll pay Stamp Duty in the usual way, just like any other home you'd buy.
If you're a first-time buyer, you can still benefit from first-time buyer relief, subject to the government rules at the time.
What’s it like once I move in?
Who looks after maintenance?
- You: Day-to-day upkeep, like changing light bulbs, repainting walls and handling small fixes.
- Us†: The essential structure and core systems, including heating, plumbing, electrics and the roof.
If you’re ever unsure where something sits, just ask.
Can I decorate the home?
Absolutely. You’re free to decorate and make the home feel like your own.
Hang pictures, paint the walls, or change the carpets
Just no structural alterations.Can I rent out the home or a room?
Your Deposit Bridge home needs to be your primary residence, so subletting the whole home or renting out rooms isn’t permitted under your Home Occupation Agreement.
You’re of course welcome to have friends and family stay, just not on a long-term or commercial basis.
If you’re ever feeling financial pressure, talk to us early. We’re here to help.
How does buying the home work?
When can I buy?
You'll have the option to buy your home during a defined purchase window towards the end of your five-year agreement.
We'll let you know well in advance so you have time to plan, explore your financing options and decide what's right for you.How does the 10% discount work as a deposit alternative?
If you decide to buy, you'll buy the home at a 10% discount on its independently assessed market value. That means you're buying it for less than it's worth, which means you need to borrow less.
Some lenders can treat that 10% discount as your deposit when assessing your mortgage, rather than asking you to save a separate cash deposit on top. This is known as a concessionary mortgage.
Every lender works slightly differently, so when you're ready to buy it's worth speaking to an independent mortgage adviser to see what could work for you.We don't recommend specific lenders or give mortgage advice.
How is the home valued when I buy?
If you decide to buy, we'll arrange for an independent RICS surveyor to value the home. We don't set the price.
You'll then receive a 10% discount on the home's independently assessed market value.
If the value has gone up, your discount applies to the higher figure. If it's gone down, your discount applies to the lower one. The 10% stays the same.What type of financing can I use?
You'll only need a concessionary mortgage if you plan to use your 10% discount instead of a cash deposit.
If you're contributing a cash deposit alongside the 10% discount, that deposit would be applied to the discounted price, and a standard mortgage or other home financing options may be suitable.
Mortgage availability and terms depend on the lender. We don't offer mortgage advice, so when the time comes it's worth speaking to an independent financial adviser to understand what could work for you.Can I use Shariah-compliant finance?
You’re welcome to explore Shariah-compliant home finance if you choose to buy, provided your chosen provider is comfortable with the Deposit Bridge structure.
Each provider has their own criteria, so when the time comes it’s worth speaking to an adviser who understands Islamic home finance.
Can I still use my ISA or LISA?
In many cases, yes, but it depends on your circumstances and the rules of your ISA or Lifetime ISA.
If you decide to buy your Deposit Bridge home, the purchase works like a standard home purchase. That means you may be able to use your ISA or LISA towards the purchase, as long as you meet the scheme's criteria at the time, such as first-time buyer status and property value limits.
The 10% discount doesn't stop you from using your ISA or LISA. Each provider has its own rules around withdrawals and qualifying purchases, so it's worth checking with them directly.
If you're unsure, speaking to an independent financial adviser can help you understand your options. We don't provide financial advice.Will I still count as a first-time buyer?
Yes. While you're living in the home through Deposit Bridge, you don't own it. So when you decide to buy, you can still count as a first-time buyer, as long as you haven't owned a home before.
If you're eligible, that could include benefits like first-time buyer Stamp Duty relief. The exact rules depend on what's in place at the time, so it's always worth checking when you're ready to buy.What if I can’t secure financing?
That's okay. Buying is always your choice.
If you're unable to secure financing, you can decide not to go ahead. There's no penalty for choosing not to buy.
Depending on your circumstances, you may still be eligible for a payment from the sale proceeds when the home is sold. You can find out more in the next section.Can I buy earlier?
The option to buy becomes available during your defined purchase window towards the end of the five-year agreement.
Deposit Bridge is designed to give you time. Five years to settle in, plan ahead and decide without pressure.
Having a clear purchase window keeps things simple and predictable for everyone.Could anything affect my right to buy?
Your defined option to buy is set out clearly in your agreement, and for most people it stays in place for the full five-year agreement.
There are a small number of situations where it could be affected. For example, if your monthly living payment isn't kept up, your defined option to buy or discount may no longer apply.
In very rare circumstances, if house prices were to fall significantly below the home's original value, the structure may need to be reviewed. We'd contact you directly if this ever happened.
What if I decide not to buy?
What happens if I don’t want to buy?
That’s completely fine. Buying is always your choice.
If you decide not to buy, the home will be sold. What happens next depends on your circumstances, including how long you’ve lived in the home.
We explain your options below.
Can I keep living in the home if I don’t buy?
Deposit Bridge is designed as a five-year pathway to ownership, so it isn’t a long-term rental product.
If you choose not to buy, the home will be sold and you’ll move on to your next step.
What happens financially if I decide not to buy?
You may be eligible for a tenancy completion incentive payment.
If you decide not to buy at the end of your five-year agreement, you may be eligible to receive up to 7% of the sale proceeds once the home is sold.
If you leave early, you may still be eligible, but the incentive would be lower depending on how long you've lived there. You'll need to have lived in the home for at least two years and keep up with your monthly living payment until the home is sold
How is Deposit Bridge structured?
What agreements will I sign?
You’ll sign two agreements.
The Home Occupation Agreement covers living in and looking after the home.
The Right to Purchase Agreement gives you the option to buy the home after five years, with a 10% discount.
You’ll be able to review both in full before signing. There’s no obligation to buy, only the right to.
What if my circumstances change?
Life doesn't always go to plan. If your job, health or family situation changes, talk to us.
In most cases, your defined option to buy stays in place as long as you're keeping to your agreement. We'll do our best to be reasonable and accommodate changes where we can.
That includes short stretches where you may not be able to stay in the home for a period of time.
The key thing is staying in touch so we can work through it together.What if I can’t make a monthly payment?
Tell us as soon as possible.
In appropriate cases, temporary payment support may be available and this doesn't automatically affect your defined option to buy as long as you intend to remain in the home.What if I need to move out early?
You’re not locked in. If you need to move out before the five years are up, you can do so by giving notice.
You may still be eligible for an tenancy incentive payment. This is a portion of the home’s sale proceeds, based on how long you’ve lived there. Depending on timing, this would typically range from 1% up to 7%.
As with all incentive payments, it’s paid once the home is sold and you’ll need to continue making your monthly living payments until then.
What kind of homes could I live in?
What types of homes are available?
Deposit Bridge is currently available on selected high-quality new-build homes listed on our platform.
We focus on new-build homes because they’re energy efficient, low maintenance and built to modern standards.
You can explore what’s available by starting with your home budget.
Can I choose a home that isn’t on your website?
Homes need to be selected from those available through Deposit Bridge.
We work with specific homebuilder partners, and each home has to meet certain criteria, including value and eligibility, to work with the product.
Get your Home Budget to see what’s available.
If there aren’t homes near you yet, you can use the link on the Homes page to tell us where you’d like to live.