HomeNow is trying to solve a very real problem. Many renters can afford a monthly payment, but struggle to save a deposit while paying rent at the same time.
So the appeal is obvious. You move into a property now, live there for a set period, and then aim to buy it later with support towards the deposit. For some first-time buyers, that may feel like the only realistic route out of renting.
But it needs to be understood properly.
This is not the same as a standard tenancy, and it is not the same as getting a mortgage now. HomeNow operates through a regulated Home Purchase Plan, where you rent the property for a fixed period and are expected to buy it at the end, unless that obligation is waived.
That is the part buyers need to take seriously. It is not a loose option where you can simply try the property and decide later with no consequences. You are entering into a structured agreement built around the expectation that you will become mortgage-ready and complete the purchase at the end.
There are different versions of the plan. The Any Home Plan runs for up to five years and lets you choose an eligible property on the open market. The New Build Plan runs for two years and applies to selected new build homes. In both cases, HomeNow says the buyer may receive a deposit contribution or rental refund equivalent to 5 per cent of the property’s value at the end of the term, subject to the plan conditions being met.
That sounds attractive, but it is not the same as building guaranteed equity from day one.
The final purchase price is based on the market value of the property at the end of the plan. If the property has gone up in value, you may need a larger mortgage than you expected. If the property has not risen enough, or has fallen, the deposit contribution may not work in the way you hoped and the route to ownership may become more complicated.
The biggest risk is mortgage eligibility.
HomeNow can assess whether the plan looks realistic when you apply, but no provider can guarantee that a mortgage lender will approve you in two or five years’ time. Your income, credit file, debts, employment position, mortgage rates and lender criteria could all change.
That means you need to ask a hard question before signing: if nothing improves dramatically, are you genuinely likely to qualify for a mortgage at the end?
If the answer is no, this may simply delay the problem rather than solve it.
There are also day-to-day responsibilities to consider. You are living in the property before you own it, but you may be expected to look after it more like an owner than a normal tenant. You need to understand who pays for maintenance, what changes you can make, what happens if something breaks, and whether any unresolved issues could affect the refund or final position.
You should also check the cost carefully. No deposit upfront does not mean no upfront cost at all, and the monthly rent needs to be affordable alongside your wider budget. If you fall behind with payments, the consequences can be serious.
That does not mean HomeNow is a bad idea. For the right buyer, it could provide stability, time to prepare, and a more structured route towards ownership than private renting.
But it is not a shortcut that removes risk. It replaces one problem, saving a deposit, with another set of questions around future mortgage approval, final valuation, property price movement and contractual commitment.
Before signing, compare it with the standard routes first. That means checking whether a traditional mortgage is possible now, whether a smaller deposit product could work, whether family support is available, whether shared ownership is suitable, or whether waiting and saving for longer leaves you in a stronger position.
The right test is not “does this get us into a home now?” It is “are we likely to be in a strong enough position to buy this home when the plan ends?”
This is where John Charcol can help. An adviser can look at your income, credit profile and likely mortgage options now, then stress-test whether you are realistically on track to secure a mortgage at the end of a HomeNow plan. That comparison is important, because the scheme may work well for some buyers, but it should be chosen with open eyes rather than because it feels like the only option.
