Nationwide has invested in rent-to-own start-up Kettel Homes as part of plans to help its customers navigate the cost-of-living crisis.

The rent-to-own start-up helps first-time buyers unable to access typical mortgages to approach home ownership by saving a proportion of their rent to build up a deposit.

The building society said it has put £2.5 million into an incubator specifically designed to enhance platforms such as Kettel Homes by bringing together start-up businesses with innovators, organisations, and charities.

With a minimum deposit of two per cent, Kettel enables customers to purchase the home they wish to own and then rent back to them at market rates while they save their deposit and build their credit score.

“The fact is many individuals who are struggling financially have to pay more for the same goods and services,” said Claire Tracey, chief strategy and sustainability officer, Nationwide Building Society. “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.”

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