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How to Get On To the Property Ladder

There are many pitfalls when trying to get on to the elusive property ladder. Being self employed, being in debt or having low savings can all hinder your chances of getting on the property ladder. Do not despair, even if you have minimal savings and a lot of debt, you can still realise your dream of becoming a homeowner. Getting on to the property ladder can be a realistic dream.

Many people have stated their utter despair at trying to get on to the property ladder. For years, people have been trying and they are often left feeling despondent by the results. With rising property prices throughout the UK buying a home can be difficult, although not impossible.

First time buyers must have at least 10% of the mortgage that they need as a deposit. This can be seemingly difficult to get. If you are currently renting, having a hefty amount of disposable cash at the end of the month can seem unrealistic. If you want to seek the advice of the housing experts, try searching for local estate agents within your current location. For example, a search stating “estate agents in Chigwell” will bring back localised results. Modify the search to suit your location.

There are a number of things that you can do to achieve home ownership. Shared ownership schemes have been put in place to help those who cannot gather the full deposit, or who are on a low income. The subsidised system does only apply to new build properties. Furthermore, if you earn more than £66,000 per year you may not be considered for this scheme.

As a self employed individual you may also face difficulties in obtaining a mortgage. Whether you are a contractor, or a freelancer, by not having a steady wage you could be hindering your chances of getting mortgage. Do not don your suit and head back to the office, there are things that you can do to ensure that you get a housing loan. Make sure that you have two years worth of books available, as well as all documentation from HMRC. This proves to the bank that you are a viable candidate for a loan. It may be important to start saving a small amount each month and making sure that your bank account does not go into the red.

A lack of deposit should not hinder your chances of becoming a homeowner either. The government’s Help to Buy scheme should be able to help you get a mortgage if you are lacking a significant deposit. The Help to Buy scheme was set up in April 2013 and allows first time buyers to buy a property with a mere 5% deposit. Many high street banks are now offering first time buyers a chance to buy their own home via the Help to Buy scheme.

The Help to Scheme has proved popular with new buyers. You are applying for a government backed equity loan which means that you only need a 75% mortgage. The loan is interest free for five years and is cheaper than most mortgages. Should you opt for this kind of mortgage, it is important to pay the loan back within the five years to avoid excessive interest fees.

 

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Image courtesy of William Wootton