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The news is constantly filled with stories about the property market. Usually, these are based on the cost of homes rising, and how overpriced properties are preventing first-time buyers from getting onto the property ladder. It can certainly be disheartening to see the huge selling prices being asked for modest properties. But that doesn’t mean that you need to give up on your dream of buying your first home.
Purchasing your first property is a big step to take. You may be renting right now and keen to settle down in your own space. If this sounds like you, you probably want to find your first home quickly and move into it as soon as you can. However, for many first time buyers, the amount needed to pay a deposit on their first house purchase can be hard to save. In this blog, you’ll find some ideas to help you buy your first home more quickly, rather than waiting years to finally move into your own space.
Consider Shared Ownership
One option to consider first is shared ownership. Shared ownership schemes are often a popular choice among buyers with low deposits, and also those who don’t earn quite enough to be issued a mortgage for their preferred size and location of property.
Shared ownership allows you to buy a percentage of the property, while paying a subsidized rental amount on the remaining percentage of the home. Before you start looking at shared ownership properties, it’s helpful to consider shared ownership pros and cons to check that it’s the best option for your situation and your finances.
Find a Guarantor
If you’re struggling to be accepted for a mortgage for the amount you would ideally like to borrow, it can feel like the end of the world. This can mean that you need to stay in your rental while attempting to save up a larger deposit for many months or even years. One option to consider in this situation is to use a guarantor. A guarantor is usually a member of your family, and they must agree to cover the cost of your mortgage payments if you fall behind.
Being a guarantor is a huge responsibility, so many first time buyers struggle to find a willing family member to take on the role.
Look for Buying Schemes
Another option to consider to make buying your first home more affordable is to research buying schemes. Buying schemes are often introduced by the government or local authorities to stimulate the housing market, and are sometimes specifically for key workers, such as doctors, nurses, and teachers. Using a buying scheme usually enables you to buy a house for less or with a smaller upfront deposit.
Final Thoughts
Buying your first home should be an exciting experience, so finding ways to make it happen more quickly is always welcome. If your deposit is lower than you hoped, or your income doesn’t stretch to the mortgage amount you hope to borrow, the above alternatives may help.