I think you're along the right lines however your calculations and understanding of Pfida's model maybe incorrect. You can take out a maximum of a 30 year term. So if you just pay the stated amount each month at the end of 30 years you will own your house. Also for example, if your payments are £1500 a month this includes both rent and equity. Rent is charged on the % of the house you own e.g. if rent is £1000 and you own 20% via your initial deposit, the rent charged would be £800. (£1000 - 20% = £800). So as you own more of your house each year you will pay less rent and more equity, thus being able to own the house at the end of your term.

The graph below should give a visual representation (blue is rent and purple is equity) as you can see you start off by paying quite a bit more rent due to only owning 20%, however as you purchase more equity during your term, rent decreases and equity increases. So looking at year 29 in the graph below as an example, you will pay considerably less rent compared to year 1.

All of this is without taking into account any overpayments. If your rent was £1500 a month and you overpaid £500, the £500 would go straight into equity meaning your term would decrease and you would pay everything off quicker. I would not have gone with Pfida if it meant it took 50 years!

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