One of the most rewarding parts of your life can be successfully applying for and actually managing to own a house. Nonetheless, given the relatively high price of owning a home, especially in London or the South East, it can be a rather stressful process. Thankfully for you, this guide has been created to outline a few ways that you can be on your way to owning a house of your own. If you are interested in learning more, it is recommended to read the complete overview created for your reading pleasure below.
Apply for a Mortgage
If you are making a certain amount of money and can afford to pay a deposit — which can vary between 5 to 15 percent of the total house price — then the smartest option can be to apply for a mortgage. This can be pretty simple if you have a salaried job, as all you will have to do is provide your work contract and your income slips to prove to the bank that you have enough money to pay off your mortgage each month. While mortgages do involve a monthly fee, it’s worth bearing in mind that this is usually a lot less than paying the rent, especially now as house prices are going down.
This process is slightly more complicated if you work as a freelancer or have your own business. This is because you might not easily prove that you have a certain fixed amount of income. Nonetheless, if you use the services of an accountant to verify your monthly income, this is definitely doable. It’s worth taking a look around you now to see if you can qualify for self-employed mortgages.
Ask For Money from Family or Friends
One of the best ways to raise funds for a mortgage or buy a house outright is to borrow from your family or friends. It’s worth bearing in mind that the 10th biggest loaner in the UK — especially when it comes to raising funds to pay for a deposit —is actually the so-called “bank of mum and dad.” This means that if you are in a position to do so, it might be worth asking your mum and dad if they have the funds to help you buy a house. Additionally, you can ask your friends instead. Just ensure that you have a plan to make sure that you pay them back in good time.
Buy a House Outright
If you don’t mind where you live in the UK, you will find that there could actually be the option to buy a house outright. For example, in New Cumnock in Scotland, homes are currently listed at just over £22,000. Given that this is ten times less than the traditional asking price, this means that you can potentially be able to save up to buy the house in cash. Additionally, if you want to mortgage this type of house, you would only need around £2,000, making it very affordable. However, this kind of option is far more difficult in a place such as London, where the average house price is over £650,000. It’s worth thinking a lot about the kind of location you would like to live in and how it works around your job to find the affordable one for you.
Use Help-To-Buy Schemes
If you are a first-time owner, there is the potential to use the government to help you buy a home. The help-to-buy scheme, introduced by the then Chancellor of the Exchequer George Osborne in 2013, has a variety of ways to help you get your foot on the property ladder. The government can help provide you with a loan of up to a certain amount of a mortgage, help you pay into a variety of ISAs, or help you buy a new-build home. It’s worth talking around to see how they can help you and whether it works for your particular circumstances. While a variety of help-to-buy schemes have been phased out, it’s worth looking at the equity loan that they possibly might be able to provide you. With that said, it’s worth consulting with a financial advisor before making a final choice to review your options.
