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The mutual is aiming to help first-time buyers during the cost of living crisis through Kettel Home.
Image source: Nationwide.
Nationwide has invested in rent-to-own fintech Kettel Homes, helping first-time buyers who do not have access to traditional mortgages.
Kettle works with new buyers to purchase their home and rent it back to them at a locked in market rate while they save their deposit, build their credit score and enhance their affordability.
Through fixing their rent, savings and future price from the offset, Kettle provides a roadmap for first-time buyers to purchase their own home within 36 months.
“Generation rent has become a requirement versus an option for most millennials and gen z,” Kettel co-founder and CEO Trevor Stunden said.
“We are setting out to change that by using a blended model to help give aspirational first-time buyers the structure they need to get their foot on the ladder.
“Our goal is to expand homeownership to people who couldn’t otherwise get access to traditional home financing at the moment.”
Nationwide has invested in Kettel in part of the building society’s efforts to help its members get through the cost of living squeeze by addressing the issues people face in times of financial difficulty.
It has put £2.5m into an incubator designed to “encourage and enhance”’ innovative platforms such as Kettel.
“The fact is many individuals who are struggling financially have to pay more for the same goods and services,” Nationwide chief strategy and sustainability officer Claire Tracey said.
“More needs to be done to make things fairer for those who have the least means. But these are not easy issues to solve and require a truly collaborative, cross-sector effort.
“Through providing meaningful support alongside funding, we are looking to help transform the lives of those living in poverty through scaling long-term solutions to help tackle the challenges this presents.”
Kettel works with institutional property investors to purchase the properties – single-family homes bought for £125,000-£400,000 outside of London – and uses its platform to manage the process.
It launched exclusively for first-time buyers in Birmingham, Coventry, Leicester and surrounding areas and is expanding to more cities over the next two years.
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