2007-09-22 12:21:19 · 5 answers · asked by Nita 1 in Business & Finance ➔ Renting & Real Estate
In the UK, hire purchase is usually only used for large purchases such as a car or electrical appliance.
It's just another name for getting a loan for the value of the item which you pay back in fixed amounts for a fixed term.
In home buying this isn't available in the UK unless you mean the part-rent/part-buy scheme known as Shared Ownership of HomeBuy. There are eligibility criteria to join one of these schemes usually being a key worker or on a waiting list for social housing.
In these schemes you get a mortgage for only part of the value of the home, typicaly 50% and rent the remaining amount from a housing association. As time goes by you can purchase further shares in the property, known as staircasing.
Effectively, this allows people on low incomes who do not earn enough to raise a mortgage for the full value of the home to get a first step on the property ladder.
The important thing to note is that your monthly payments usually amount to the value of a repayment on a mortgage for the full value so there is no saving in this scheme month-on-month.
2007-09-22 13:25:25 · answer #1 · answered by MPatrinos 3 · 1⤊ 0⤋
Where you borrow money from a 3rd party to pay for an item
eg A trader sells you a car and a credit lender loans you the cash for the car.
You then make monthly repayments (hire) to the lender until it is paid up in full (loan and interest charged)
Until the balance (purchase ) is paid in full.. the car belongs to the credit provider.
After two thirds of the repayments have been met you can give the car to the lender and end the agreement.
After half of the payments have been met the lender would beed a court order to obtain ownership of the car
2007-09-23 02:13:33 · answer #2 · answered by stormydays 5 · 1⤊ 0⤋
I like the purchase process and understand it very well.
I wish I understood your question.
There are several books on purchase and hiring as well as process. You should be able to find them locally.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-09-22 12:30:35 · answer #3 · answered by loanmasterone 7 · 1⤊ 0⤋
Assuming this is the UK name for Rent-to-Own, it varies from one situation to the next. The most common one is for all or part of your monthly rent to be applied toward a down-payment on the property the owner is eager to sell. Once the sale is complete, you take over the monthly payments, assuming the mortgage or replacing it with your own, depending on the situation.
2007-09-22 12:26:47 · answer #4 · answered by Anonymous · 0⤊ 0⤋
not sure
2007-09-22 12:24:52 · answer #5 · answered by ngirl 1 · 0⤊ 0⤋