With the prospect of rising rents, it’s little wonder that many people are very keen to purchase a property of their own. After all, being a homeowner allows you to put your hard-earned money into a real financial asset, rather than simply handing it over to a landlord.
However, making that first step onto the property ladder is often easier said than done. If you aren’t lucky enough to have enough left over cash to save, or any family able to help you make a deposit, then you may well question if buying your own home is even possible. Fortunately, there are still ways to achieve your dream of becoming a homeowner.
One: Check Your Credit Rating
Before you start to apply for a mortgage, it makes sense to get a good idea of your financial situation. There are many free online tools that provide an overview of your credit rating, which is a key indicator as to how likely you’d be to be offered a competitive mortgage deal. Don’t despair if your credit rating leaves something to be desired: there are many ways to improve it, such as taking out a credit card and paying it back regularly.
Two: Shop Around
When you’re ready to apply for a mortgage, don’t rush into signing up for the first deal you find. Instead, you can find that there’s plenty of money to be saved in the long run by shopping around. Make sure, too, that you understand what the different mortgage products involve. For all kinds of advice on different types of mortgage, including joint borrower sole proprietor mortgage legal advice, seek expert input, such as that seen here: https://www.parachutelaw.co.uk/joint-borrower-sole-proprietor-mortgage-legal-advice.
Three: Be Realistic
You will need to have a budget in mind once you start your home hunting, and it’s important to understand that different factors, such as location, number of bedrooms, and condition of the property, will have an impact on the price. Be clear on what are your property “must haves” and what are your “nice to haves”- for example, moving further afield may allow you to get that extra bedroom within your budget after all.
Four: Try A Government Scheme
For many first-time buyers, there are schemes available that are specially designed to help them get on the property ladder. Initiatives include Help To Buy and Shared Ownership, which can be explored. Your local council may also have schemes, so check out the Housing section of their website.
Five: Consider Buying With Friends
When you are in a similar position to your friends, you can pool your resources and buy together. However, if you do decide to go down this route, it’s essential to create a legal agreement to determine what will happen to the property should any of your circumstances change, such as getting married, having children, or simply needing to move away. Another option worth exploring is joining a “co-housing” group, in which you invest in self-building property with others.