Allbricks versus a Mortgage
Based on a home that costs £500k today.
To secure the best deal for a mortgage, the average deposit is now at 15% and typically takes 10 years to save for.
With us you only need 1% or £10,000—whichever is higher—to buy a home. On average cutting the time it takes to save by more than 80%!
So let’s say, at the end of Year 1 you buy a £500k house. This will cost you £11,150 including fees, which equals 2% of the house. You then pay 98% market rent to investors.
Let’s say you choose to buy bricks each year—at the end of Year 5 you will have invested a total of £45,690 and increased the amount you own of your home to 8%.
Every time you buy more bricks the total rent you pay decreases. At the end of Year 5 you are paying 92% of market rent, and at the end of Year 10 you are paying 85% of market rent.
You now have your 15% deposit but the £500k house you wanted 10 years ago now costs £775k.
You’ve been in your home for 10 years and after spending in total £99,841 on bricks, you own 15%. You’ve paid zero interest.
At the end of year 10 you finally buy your home, costing you £108,000, including SDLT fees. See our Fee Comparison page for more information.
You own 15% of it with the bank financing the rest and your interest is 4.04% per annum.
You’ve been in your home for 2 years after spending in total £140,000. You own 19%. You’ve paid £53,000 in interest and owe the bank £627,000.
You’ve been in your home for 12 years and after spending in total £136,512* on bricks, you own 19%.
You can buy as many or as few bricks as you want, subject to availability. Investors are only obliged to sell a maximum of 5% of their bricks per annum, after three years from the original purchase of the property. You can at any point, buy the house outright.
Allbricks has left no stone unturned to create a model designed to help home buyers get on the housing ladder fast. Built from the ground up, we provide a safe and secure way to become a home buyer, or to scale-up. Traditional mortgage providers have, for too long, had a monopoly on the housing market. Allbricks is the home buying revolution!