We recommend that anyone exploring home ownership take independent financial advice. Please visit our dedicated page to help you find a financial advisor. We have also partnered with Ecclesiastical Financial Advisory Services to offer a discounted rate for our pension scheme members, and the first conversation is free. See more information here.
While this page was drafted with stipendiary clergy in mind, some of these options may also apply to self-supporting ministers.
Mortgage options that may be more applicable earlier in ministry
Residential mortgage with consent to let
A small number of mortgage providers understand the circumstances of clergy living tied accommodation, and so offer this option. It still usually comes with a 20% or 25% deposit requirement, but the financial terms are usually less challenging than conventional buy-to-let mortgages.
If you have some savings and want to own a home of your own, you might want to explore these options.
Examples include:
See government guidance on how to let a property.
Mortgages that may be more applicable later in ministry or at retirement
Shared Ownership
Shared Ownership works on the basis that you buy a percentage share of a home and then pay rent to a landlord on the share you do not own. There are various models and ways of entering shared ownership. Please see the Government website for more details.
This option may be suitable for clergy who are nearing or at retirement, have some capital, and are looking for a retirement home. Noted that shared ownership property cannot be rented out unless the landlord grants permission under exceptional circumstances.
Older People Shared Ownership (OPSO)
OPSO is a form of Shared Ownership available to people aged 55 and over. It allows you to buy an initial share in an OPSO home and pay rent on the remaining share. You can only buy up to 75% of your home, but once you own 75%, you will not have to pay rent on the remaining share.
Please visit the dedicated government website for more information and begin searching.
Retired Interest-Only (RIO) mortgage
RIO products allow you to put down a deposit, usually at least 50% of a property, and pay a monthly interest toward the mortgage. There is usually no end date to this arrangement until the homeowner passes away or goes into long-term care. RIO is usually only available to those over 55 years old.
A wide range of RIO products is available in the market. Examples include:
Other later-life mortgages
Some banks or building societies offer later-life mortgages that are not open-ended, but would still provide interest-only arrangements based on individual circumstances. Examples include Loughborough Building Society.
Some banks or building societies may be able to offer a repayment mortgage up until retirement, and then transition it into an interest-only arrangement at retirement. Speak to a financial advisor or an individual mortgage provider to explore these possibilities.
