Allbricks versus a Mortgage

Based on a home that costs £500k today.

Mortgage

Allbricks

Start saving

Day 1

Start saving

To secure the best deal for a mortgage, the average deposit is now at 15% and typically takes 10 years to save for.

Year 1

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.

You’re still saving and paying full market rent.

Year 5

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.

Year 10

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.

Year 11

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.

Year 12

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.