How Does Rent to Buy Work? Eligibility, Costs and Finding a Home

Buying a home in the UK has become increasingly challenging for households that can afford monthly mortgage payments but struggle to save a deposit while paying rent.

Rent to Buy offers an alternative by allowing eligible tenants to rent at a reduced rate while building savings towards purchasing a property.

So, how does Rent to Buy work? Under the government-backed scheme in England outside London, eligible households typically pay 20% below market rent, giving them an opportunity to save towards a deposit.

They may later purchase the property, subject to the landlord’s agreement and mortgage eligibility, or use their savings to buy another home.

In London, a separate arrangement called London Living Rent offers discounted housing for qualifying households.

Our analysis of government housing policies, published housing association requirements and property finance guidance examines eligibility, actual costs, deposit requirements, potential financial benefits and the risks applicants should understand before committing.

What Is the Rent to Buy Scheme in the UK?

Rent to Buy is an affordable housing arrangement designed to help working households move from renting into home ownership.

Instead of paying the full market rent, qualifying tenants occupy an eligible property at a reduced rental rate. The intention is to make it easier to save money towards the deposit required for a mortgage.

The standard government-backed scheme operates in England outside London, primarily through registered housing providers.

Its three central features are:

• Reduced rent: Rent is normally set at no more than 80% of the equivalent market rent, including service charges.
• Time to save: The scheme is designed around an initial five-year period of discounted housing, although tenancy agreements and extensions have their own rules.
• Opportunity to buy: Tenants may be able to purchase their rented property or use their savings to buy another home.

An important distinction is that Rent to Buy does not automatically transfer ownership to the tenant.

The rent paid generally remains rent, rather than becoming a contribution towards the property’s purchase price.

How Does Rent to Buy Work Step by Step?

The process begins with an application for an eligible property and ends, ideally, with the household obtaining a mortgage and purchasing a home.

Step 1: Find an Eligible Rent to Buy Property

The first stage is identifying a property offered through the scheme.

Most properties are advertised by housing associations, registered providers and participating housing organisations.

Availability depends on location, new housing developments and the number of homes allocated to affordable housing programmes.

Applicants should confirm that the listing is specifically designated as Rent to Buy rather than ordinary private renting, shared ownership or a commercial rent-to-own arrangement.

Step 2: Check Your Eligibility

Before making an offer, the housing provider assesses whether the household meets the scheme’s requirements.

Applicants generally need to demonstrate that they are working, intend to become homeowners and can afford the rent while saving regularly.

Providers may also examine income, credit history, existing debts and previous tenancy records.

Approval is not automatic simply because the applicant is a first-time buyer.

Step 3: Complete the Application

Eligible applicants submit their information and supporting documents.

These may include identification, proof of income, employment details, bank statements and evidence of their current housing circumstances.

Some landlords also require financial information demonstrating that the applicant has a realistic plan for saving a mortgage deposit.

Step 4: Move Into the Property

After approval, the applicant enters into a tenancy agreement and moves into the property.

Under the standard Rent to Buy programme, the government’s published guidance describes initial agreements lasting up to two years, with extensions potentially available.

The wider scheme is designed to provide discounted renting over approximately five years.

However, the tenancy’s legal structure and protections must be checked against current legislation and the particular housing provider’s terms.

Step 5: Save Towards a Mortgage Deposit

This is the most financially important stage.

Suppose the normal market rent is £1,500 a month.

Under a qualifying Rent to Buy arrangement:

• Market rent: £1,500
• Discount: 20%
• Reduced rent: £1,200
• Potential monthly saving: £300
• Potential annual saving: £3,600

If the household consistently saves the £300 difference, it could accumulate £18,000 over five years, before interest and other changes.

However, the reduced rent does not mean that £300 is automatically deposited into a savings account.

The tenant must actively save the money.

Step 6: Apply for a Mortgage

Once sufficient savings have been accumulated, the tenant can approach mortgage lenders.

The lender will examine income, expenditure, existing debt, credit history, deposit size and the property’s valuation.

Having rented the property through Rent to Buy does not guarantee mortgage approval.

If the lender is satisfied and the landlord agrees to sell, the household can proceed towards purchasing the property.

Who Is Eligible for Rent to Buy?

Eligibility depends on the programme and the housing provider.

For the standard England Rent to Buy scheme, applicants generally need to satisfy the following requirements.

Eligibility factor	General requirement
Employment	Working full-time or part-time
Property ownership	First-time buyer, with a possible exception after relationship breakdown
Affordability	Able to pay rent and save for a deposit
Financial circumstances	Unable to buy immediately, primarily because of insufficient deposit savings
Credit history	Subject to landlord assessment
Intended use	Property generally intended as the main home
Income	No universal minimum or maximum under Homes England’s core Rent to Buy policy

Is There an Income Limit?

One issue often misunderstood is the income threshold.

Homes England’s core Rent to Buy framework does not specify a national minimum or maximum household income limit.

However, individual providers sometimes advertise their own income requirements or restrictions.

For example, some housing associations specify a household income below £80,000.

That figure should not be presented as a universal government rule for every Rent to Buy property.

London Living Rent has a separate household income ceiling of £75,000.

Applicants should always examine the specific provider’s eligibility criteria rather than relying on a figure quoted in an older property article.

Can Self-Employed People Apply?

Self-employment does not necessarily prevent someone from applying, provided the relevant programme accepts their circumstances and they can demonstrate sufficient qualifying income.

A self-employed applicant may need to provide tax calculations, business accounts and evidence of consistent earnings.

From a financial perspective, the difficulty may be proving sustainable affordability rather than simply demonstrating that the business generates revenue.

Can Someone With Bad Credit Apply?

Having adverse credit does not necessarily prevent an application in every case.

Nevertheless, housing providers can carry out referencing and affordability checks.

Missed payments, defaults, county court judgments and significant outstanding debts may affect approval.

Applicants should also consider whether their credit history is likely to support a mortgage application within the intended saving period.

How Much Does Rent to Buy Cost?

The biggest attraction of the standard scheme is its rental discount.

For qualifying properties, rent is generally no more than 80% of equivalent market rent, including service charges.

The practical benefit depends on the property’s value, local rental conditions and whether the household genuinely saves the difference.

How Much Could You Save?

Market rent per month	Rent at 80%	Monthly difference	Difference over five years
£1,000	£800	£200	£12,000
£1,200	£960	£240	£14,400
£1,500	£1,200	£300	£18,000
£1,800	£1,440	£360	£21,600
£2,200	£1,760	£440	£26,400

These are illustrative calculations assuming unchanged rents and that the full difference is saved every month. They are not guaranteed returns.

The figures demonstrate why the scheme may help households that already earn enough to support a mortgage but cannot accumulate the initial deposit.

However, lower rent alone is not enough to establish financial value.

Applicants must also consider Council Tax, household bills, transport, moving costs and potential rent increases.

For renters assessing their overall finances, understanding how much rent is genuinely affordable on a monthly salary is essential before committing to a long-term saving strategy.

How Does Rent to Buy Work in London?

London operates differently from the standard England Rent to Buy programme.

The capital’s equivalent affordable housing route is London Living Rent, administered under the Mayor of London’s housing framework.

It is designed to help eligible households save towards purchasing a property while paying below-market rent.

Rather than applying a universal 20% reduction to every home’s market rent, London Living Rent uses local rental benchmarks.

These benchmarks reflect household incomes, property size and neighbourhood characteristics.

How Much Is London Living Rent?

For 2026–27, the Greater London Authority gives an average monthly rent of approximately £1,409 for a two-bedroom London Living Rent property.

The GLA compares this with an average London market rent of £2,168 in December 2025.

That represents a difference of £759 a month, or approximately 35%.

Over 12 months, the difference would amount to £9,108.

This comparison illustrates the potential affordability advantage, although actual savings depend on the specific property’s size, location, benchmark rent and comparable market alternatives.

A tenant should not assume that every London Living Rent property is discounted by exactly 35%.

Who Qualifies for London Living Rent?

The main eligibility requirements include:

• London connection: Applicants must live or work in London.
• Household income: Gross annual household income must not exceed £75,000.
• Property ownership: Applicants must not own another residential property.
• Housing circumstances: Applicants must normally be renting or living with family or friends because of housing affordability pressures.
• Purchasing ability: Applicants must be unable to buy an appropriate home locally, including through shared ownership.
• Financial sustainability: Applicants must demonstrate that they can afford the rent and build savings.

Individual housing providers may apply additional affordability checks or permitted prioritisation criteria.

How Long Can You Stay?

Under London’s 2026–36 affordable housing funding framework, London Living Rent is designed to support tenants towards ownership over a period of up to ten years.

For homes funded under that programme, providers are required to offer tenants the opportunity to purchase their London Living Rent home through shared ownership during the relevant period.

However, an opportunity to purchase is not the same as guaranteed mortgage approval or an unconditional right to own the property.

Arrangements may differ for homes funded under earlier programmes.

This makes it essential to examine the particular development’s terms before applying.

How Much Deposit Do You Need for Rent to Buy?

There are two different deposits to consider: the tenancy security deposit paid when moving in and the mortgage deposit saved towards purchasing a property.

Confusing these payments can lead to unrealistic financial expectations.

Tenancy Deposit

A tenancy deposit is security against matters such as unpaid rent or damage beyond fair wear and tear.

For tenancies covered by the standard Tenant Fees Act deposit limits, the maximum is generally five weeks’ rent where annual rent is below £50,000, or six weeks where annual rent is £50,000 to £100,000.

The precise rules and payment requirements should be checked for the actual tenancy arrangement.

A refundable tenancy deposit does not normally become part of the mortgage deposit automatically.

Mortgage Deposit

The deposit required for purchasing a home depends on the mortgage product and property value.

A first-time buyer might seek a mortgage with a 5%, 10% or larger deposit, subject to lender criteria.

For illustration:

Property value	5% deposit	10% deposit	15% deposit
£200,000	£10,000	£20,000	£30,000
£250,000	£12,500	£25,000	£37,500
£300,000	£15,000	£30,000	£45,000
£400,000	£20,000	£40,000	£60,000
£500,000	£25,000	£50,000	£75,000

A higher deposit can reduce the amount borrowed and may improve the range of available mortgage products.

However, deposit affordability and mortgage affordability are separate considerations.

A household might save £20,000 but still be unable to borrow enough to purchase a £400,000 property.

What Additional Costs Should Buyers Budget For?

The rental discount is only one part of the financial calculation.

Prospective buyers also need to prepare for the expenses associated with purchasing and maintaining a property.

Cost	What applicants should consider
Conveyancing	Solicitor fees, searches and legal disbursements
Mortgage valuation	May be charged depending on lender and mortgage product
Survey	Optional or recommended survey depending on property condition
Mortgage fees	Arrangement, broker or product fees where applicable
Stamp Duty	Depends on purchase price and buyer eligibility
Moving expenses	Removal services and relocation costs
Service charges	Particularly relevant for leasehold flats
Maintenance	Ongoing homeowner responsibility after purchase
Insurance	Buildings and contents cover as applicable

Will You Pay Stamp Duty?

Stamp Duty Land Tax becomes relevant when a qualifying home purchase takes place.

Under the first-time buyer relief rules applicable in October 2026, eligible buyers in England pay:

• 0% on the first £300,000.
• 5% on the portion above £300,000 up to £500,000.

First-time buyer relief is unavailable where the purchase price exceeds £500,000.

For example, an eligible first-time buyer purchasing a £450,000 property would pay £7,500 in Stamp Duty.

Shared ownership purchases can involve additional tax considerations, including the choice of how Stamp Duty is assessed.

These costs matter because saving enough for a mortgage deposit does not necessarily mean the household has saved enough to complete a purchase.

Can You Buy the Same House You Rent?

Yes, potentially, but purchasing the rented home is not automatic.

Under the standard Rent to Buy framework, the housing provider may decide to sell the property following the initial discounted rental period.

If it chooses to sell, the existing tenant is normally entitled to the first opportunity to purchase.

Purchasing earlier may also be possible with the provider’s agreement.

The eventual selling price is based on the property’s market value at the time of purchase rather than its value when the tenant originally moved in.

Rent to Buy does not normally provide a 20% discount on the purchase price.

The 20% reduction applies to rent.

What Happens if Property Prices Increase?

This is one of the most significant financial risks.

Suppose a property is worth £250,000 when the tenancy begins.

Five years later, its market value has risen to £300,000.

That represents a 20% increase in the property’s value.

If the tenant wants to buy it at that point, the expected purchase price may be £300,000 rather than £250,000.

A 10% deposit would therefore rise from £25,000 to £30,000.

The household could have accumulated substantial savings while the amount required to purchase the home also increased.

The opposite is possible if property prices decline.

Our analysis therefore suggests that applicants should regularly compare their accumulating deposit with likely house prices, rather than assuming that the original property value will remain unchanged.

What Happens if You Cannot Buy After Five Years?

Not every household will be ready to purchase when the intended saving period ends.

Employment changes, unexpected expenses, mortgage affordability problems or rising house prices can delay ownership.

Under the standard scheme, a housing provider may consider continuing the discounted arrangement, changing the rental arrangement or selling the property, depending on the applicable terms.

An extension is not automatically guaranteed.

If the landlord sells the home, the tenant’s relevant purchase rights and contractual protections must be respected.

Tenants may also decide to use their savings to purchase a different property.

This is a valuable distinction: the money saved remains the household’s own savings rather than being tied automatically to a particular property.

Applicants should establish the likely end-of-scheme arrangements in writing before committing.

Does Rent to Buy Work With Shared Ownership?

Rent to Buy and Shared Ownership are related affordable housing options, but they are not identical.

Rent to Buy is primarily a way to reduce rental costs while saving towards future ownership.

Shared ownership involves purchasing a percentage of a property’s value and paying rent on the remaining share.

For instance, a buyer purchasing a 25% share of a £300,000 home would acquire a £75,000 interest.

They would normally require a deposit based on the share being purchased rather than the property’s entire market value.

They would also need to budget for rent on the remaining share, mortgage payments and any applicable service charges.

Some Rent to Buy tenants may be able to move into shared ownership, subject to the housing provider’s agreement and eligibility criteria.

For London Living Rent homes funded through the 2026–36 programme, the shared ownership purchase route is particularly relevant.

Feature	Rent to Buy	Shared Ownership
Immediate ownership	No	Yes, of the purchased share
Initial mortgage required	No	Usually, unless buying with savings
Monthly rent	Discounted rental payment	Rent on the unowned share
Deposit basis	Saved towards a future purchase	Usually based on the share purchased
Property maintenance	Landlord and tenant responsibilities during rental period	Leaseholder and landlord responsibilities depending on lease and scheme
Long-term objective	Build savings and purchase	Increase ownership over time

Neither option is automatically cheaper in every circumstance.

The right choice depends on household finances, mortgage eligibility, lease terms and the intended length of residence.

How Can You Find Rent to Buy Properties?

Finding an eligible property can be harder than understanding the scheme itself.

Availability is limited to particular housing providers and developments.

Step 1: Search the Official Housing Services

For England outside London, applicants can begin with the government’s Rent to Buy information, which directs users towards the appropriate affordable home ownership services.

This is a useful starting point for identifying participating organisations.

Step 2: Search Housing Associations

Housing associations sometimes advertise Rent to Buy developments directly.

Applicants can investigate providers such as Riverside, Citizen Housing and other registered housing organisations serving their preferred area.

Not every provider offers Rent to Buy in every location.

Some properties are advertised through property portals, while others require direct applications.

Step 3: Check London Living Rent Developments

London applicants should search the Mayor’s Homes for Londoners property service for London Living Rent developments.

The application information should specify the income requirements, rental price, household size criteria and purchasing arrangements.

Step 4: Prepare Your Financial Documents

Applicants should be ready to provide proof of identity, income and employment, recent financial information and relevant housing records.

A realistic savings plan may also strengthen the applicant’s ability to demonstrate long-term affordability.

Anyone unfamiliar with tenancy applications can review the wider process of renting a home in London, including referencing, deposits, contracts and property checks.

What Are the Advantages and Disadvantages of Rent to Buy?

The scheme offers benefits for deposit-constrained households, but its suitability depends on more than the headline rent reduction.

Advantages	Disadvantages
Below-market rent can improve savings capacity	Eligible homes can be difficult to find
A mortgage is not required immediately	Future mortgage approval is not guaranteed
Provides time to organise finances	Property values may increase
Could lead to buying the rented home	Purchase of the exact property is not guaranteed
Savings can support another purchase	Tenancy extensions depend on applicable terms
May provide a route towards shared ownership	Buying costs and future service charges still apply

From a business and personal finance perspective, the main advantage is improved household cash flow.

Lower housing expenditure may allow a larger proportion of earnings to be directed towards assets rather than recurring expenses.

However, this benefit depends on disciplined saving.

If the rent reduction is absorbed by other spending, the household may finish the tenancy without sufficient capital to move into ownership.

Is Rent to Buy Worth It? Our Financial Assessment

Our review places particular weight on affordability, deposit-building potential, housing availability and the certainty of future ownership.

The following percentages are editorial assessments, not government performance statistics, consumer survey results or measured approval rates.

Assessment category	Editorial score	Reason
Reduced-rent benefit	85%	A meaningful discount can improve monthly cash flow
Deposit-building potential	80%	Consistent savings can accumulate over several years
Flexibility to pursue ownership	75%	Saved funds can support another suitable property
Availability of properties	35%	Limited developments constrain applicants’ choices
Certainty of buying the rented home	45%	Depends on provider terms, valuation and mortgage approval

The strongest financial case is for a household with stable earnings, limited existing savings and a credible mortgage plan.

For example, a couple with combined annual earnings of £60,000 might find their income sufficient to support some mortgage products but struggle to accumulate a deposit because of expensive rent.

A lower-cost tenancy could improve their savings position considerably.

By contrast, someone with unstable income, substantial debts or no realistic prospect of mortgage affordability may benefit from lower rent without necessarily achieving home ownership.

The scheme should therefore be evaluated as a deposit-saving strategy, not a guaranteed purchase solution.

What Are the Biggest Risks of Rent to Buy?

Rising House Prices

Property values may grow faster than household savings.

Someone targeting a particular home should review its estimated value periodically and adjust their deposit target where necessary.

Mortgage Affordability Changes

Interest rates, lender policies and personal circumstances can change over the saving period.

A mortgage affordable at the beginning of the tenancy may no longer be available on the same terms several years later.

Rental Increases

Discounted housing does not necessarily mean rent stays unchanged throughout the entire tenancy.

Homes England’s Rent to Buy funding rules generally limit annual increases to Consumer Prices Index inflation plus one percentage point.

London Living Rent homes funded under the 2026–36 programme are subject to their own benchmark and annual increase requirements.

The relevant programme’s rules must be checked rather than assuming the same restrictions apply to ordinary private landlords.

For context, the rules governing how much a landlord can increase rent in London differ according to the tenancy and housing arrangement.

Uncertain Purchase Arrangements

Tenants should not assume that the advertised savings period creates an unconditional right to buy.

The legal agreement needs to explain whether purchase is available, when it can take place, how the price is determined and what happens if the property is not sold.

Unexpected Household Costs

Childcare, illness, unemployment, debt repayments and maintenance of personal finances may interrupt savings.

A household relying exclusively on the theoretical rental discount without maintaining an emergency reserve could find it difficult to continue the plan.

How Do the 2026 Renting Reforms Affect Rent to Buy?

England’s rental framework changed significantly on 1 May 2026 following the Renters’ Rights Act 2025.

For most private assured tenancies covered by the reforms, traditional fixed-term arrangements have been replaced by assured periodic tenancies, alongside changes to possession rights and rent increases.

However, applicants should not assume that every housing association tenancy is governed by exactly the same implementation timetable.

Different rules and commencement arrangements apply to certain social housing tenancies, with further reforms scheduled for October 2027.

The legislation also includes a specific possession ground relevant to qualifying Rent to Buy arrangements with registered social housing providers.

The statutory definition refers to discounted rents and an agreed period of at least five years, or ten years for qualifying agreements in Greater London.

These provisions make the written Rent to Buy agreement particularly important.

Before signing, applicants should ask the provider to explain the type of tenancy offered, the applicable rent increase rules, any right to purchase and the circumstances in which the tenancy could end.

How Can You Improve Your Chances of Buying Through Rent to Buy?

A successful Rent to Buy strategy begins before the tenancy starts.

The household should establish a realistic property purchase target, determine the deposit required and examine the likely mortgage affordability position.

A practical approach includes:

1. Set a purchase target: Estimate the cost of a suitable home rather than saving towards an unspecified amount.
2. Build an emergency fund: Keep short-term financial security separate from deposit savings.
3. Automate savings: Transfer an affordable amount into a dedicated savings account each payday.
4. Review credit records: Address inaccuracies and manage outstanding obligations.
5. Control borrowing: Avoid taking on unnecessary debt that could reduce mortgage affordability.
6. Review the property market: Reassess local prices and mortgage products periodically.
7. Seek mortgage advice: Understand likely borrowing capacity before the intended purchase date.
8. Check purchase terms early: Confirm what the housing provider can offer and what remains discretionary.

Eligible first-time buyers may also consider savings products such as a Lifetime ISA, subject to age, property-price, withdrawal and other rules.

A Lifetime ISA can provide a 25% government bonus on eligible contributions, but the property purchase ceiling of £450,000 can be particularly restrictive for London buyers.

Non-qualifying withdrawals normally incur a charge.

It should therefore be assessed against the likely purchase price before money is committed.

Is Rent to Buy Better Than Renting Privately?

Rent to Buy can be financially advantageous where the household can access a suitable discounted property and save the difference consistently.

However, the choice is not determined by percentages alone.

For instance, a discounted property far from work might reduce headline rent while increasing commuting expenses.

A privately rented property closer to employment could have a higher monthly rent but lower transport costs and better practical suitability.

Applicants should compare all housing expenditure over the relevant period.

For weekly rental listings, the annual cost should be converted accurately rather than multiplying weekly rent by four. Understanding the difference between PW and monthly rent helps prevent incorrect comparisons when assessing properties.

It is also worth considering whether remaining in a cheaper existing tenancy and saving independently could achieve the same objective without moving.

What Should You Ask Before Signing a Rent to Buy Agreement?

Before proceeding, applicants should obtain clear answers to the following questions:

• What is the property’s independently assessed market rent?
• How has the discounted rental amount been calculated?
• Are service charges included?
• How long is the discounted rental arrangement expected to operate?
• Under what conditions can the rent increase?
• Can the household buy the same property?
• Is early purchase possible?
• How will the selling price be determined?
• What happens if mortgage approval is refused?
• Can the tenancy continue if the household is not ready to buy?
• What happens if the landlord decides to sell?
• Which repairs and other costs will the tenant be responsible for?

These answers should be supported by the tenancy agreement and relevant purchase documentation.

A verbal indication that a tenant will eventually be able to purchase the property is not a substitute for understanding their contractual rights.

Final Thoughts

Rent to Buy can provide a practical route towards home ownership for households whose main obstacle is saving a deposit rather than meeting monthly mortgage payments.

A reduction of 20% in rental costs can create meaningful savings over several years. In London, London Living Rent may offer a different and potentially substantial affordability benefit.

However, the scheme is not a guaranteed path to ownership. Property prices can rise, mortgage lending conditions can change and the opportunity to purchase a particular home depends on the relevant arrangements.

Our assessment is that Rent to Buy works best when tenants approach it as a structured financial plan: calculate realistic savings, understand the agreement, assess future mortgage affordability and review progress regularly.

The most important question is not simply how much rent can be saved today, but whether those savings can realistically help the household purchase a suitable home in the years ahead.

Frequently Asked Questions

Is Rent to Buy a Good Idea?

It can be worthwhile for working households that struggle to save a mortgage deposit. Its value depends on the rental discount, property availability, future mortgage affordability and purchasing terms.

Do You Get Your Rent Money Back When You Buy?

No. Under the standard government-backed Rent to Buy scheme, rent payments do not normally become equity or count automatically towards the purchase deposit. Separate commercial arrangements may operate differently.

Can You Buy a Rent to Buy House Before Five Years?

Potentially. Early purchase can be allowed with the housing provider’s agreement, subject to the applicable scheme rules and the buyer obtaining suitable finance.

Does Rent to Buy Affect Your Credit Score?

Participating in the scheme does not automatically improve or damage a credit score. However, missed payments, reported arrears, borrowing activity and relevant credit checks may affect credit records.

What Happens if You Decide Not to Buy?

You may use your accumulated savings towards another property or decide not to purchase. The ability to remain in the rented home depends on the agreement and provider’s policies.

Is Rent to Buy Available Everywhere in the UK?

No. The government-backed Rent to Buy scheme operates in England outside London. London Living Rent is a separate arrangement, while Wales, Scotland and Northern Ireland have different housing schemes and policies.

Can You Use Rent to Buy Without a Mortgage?

You do not need a mortgage when beginning the rental phase. To purchase the property later, most applicants will need mortgage finance unless they have sufficient funds to buy outright.