Does it feel like everyone is getting on the property ladder except you?
While most people don’t want to be stuck in the renting cycle for the rest of their lives, it is becoming increasingly difficult to be able to afford to buy your own home.
Whether you are thinking about buying a house on your own, with your partner, or with a sibling or friend, the first thing you need to determine is if you can afford to.
Find out more about purchasing your first property below.
Be realistic about what you can afford
If you have already started looking at properties, even if just online, you may already be getting carried away and dreaming of a home that you are unlikely to be able to afford. This is completely natural and something that we have all done at some point or another, but it is not helpful in terms of you finding your first home.
Instead, be realistic about what you can afford and make sure that you consider other costs, such as solicitor fees, mortgage fees, and any home improvements that you might want to make.
Consider shared ownership or shared equity
There are several schemes available that can help you to get onto the property ladder and these are a good option for those who only have a small deposit to put down.
Shared ownership is when you buy a percentage of the property and you rent the rest from your local authority. Shared equity, on the other hand, is when a developer helps you to buy one of their properties through a scheme that increases your deposit. Essentially a loan from a developer, these often have low interest rates, which can help to make repayments more affordable.
There is also such thing as a help-to-buy scheme, which can help people who otherwise wouldn’t be able to afford their own homes. Find out more insights on help to buy here.
Ask the bank of mom and dad
Although this is not an option for everyone, if you can borrow some money for a deposit from your mom and dad, or someone else in your family, this can be a great way to get on the property ladder if you have been turned down by the bank.
That being said, this option is not without risks and it can cause arguments if you do not set clear rules about when or if you need to pay them back.
Another option is to ask your parents to be guarantors for your mortgage, which can help you to be accepted by lenders. However, if you need to be sure, you can comfortably pay the agreed monthly repayments or they could risk losing their home.
Can I get a mortgage on my own?
Yes, you absolutely can. There are no rules that say single people can’t buy a property and you have the exact same rights as a couple. That being said, you will have half the buying power of a couple, which means you will probably have to buy a smaller house. However, on the other hand, your application will only be dependent on yourself, so you don’t need to worry about anyone else’s poor credit history or bad credit rating.