Collaborative Post
Stepping onto the property ladder is one of the top goals in life. However, it is notoriously difficult for first-time buyers to make it happen. Despite the government schemes to help combat this issue, not least in this recession, there are several obstacles to consider.
Those potential brick walls deserve your attention, but they shouldn’t stop you from achieving your goal. Here are some of the most common challenges that you may face, along with how to overcome them.
Inconsistent Income
Around five million Brits are self-employed. Millions more work for agencies or in jobs with changing rotas or commission-based payments. We are a country of workers that do not necessarily have a set monthly wage. Nonetheless, traditional bank lenders continue to use the same criteria as in the past.
In truth, this causes major stumbling blocks for many mortgage applicants. Even those that can clearly afford their mortgage repayments. The best response is to find specialised products, such as doctor mortgages. This ensures that your full situation is taken into account and the best deals are found.
Meanwhile, self-employed applicants should consider hiring an accountant or looking at alternative methods. For example, a guarantor with a more stable income and financial background may help you get accepted. Just be sure that you can afford the payments. Or else, it could destroy your friendship.
Photo by Jozsef Hocza on Unsplash
Not Enough Capital For Your Dream Home
The average cost of UK homes has grown at a far quicker rate than salaries. This leads to a situation where lots of first-time buyers have to settle for a smaller property than they’d like. If a flat can see you through for the next few years, that’s great. However, it’s not the only way to get a cheaper home.
Buying a fixer-upper is often the best approach to buy a bigger property at an affordable price. When you choose cost-effective home upgrades too, it is perhaps the smartest option for your long-term finances too. The scope for financial growth is far higher.
In truth, you would spend a lot of time and money stamping your authority on any property. So, this route makes a lot of sense of first-time buyers. Even if it does mean that you will need to wait a little while until the property feels like a home. If you have young kids, you can always rent for a short time.
Finding A Location
When buying a property, you aren’t just investing into bricks and mortar. You are buying into a whole new way of life. For this reason, along with the financial factors, you cannot afford to get it wrong. The geographic location is vital, not least if you’re planning to stay put for a long time.
There are many things to consider when researching a neighbourhood. From living costs to crime rates and job prospects, each element needs attention. When combined with an understanding of terms like fixed-rate and variable, you will have a far better shot at finding the right solution.
Buying a home isn’t your only option. A lot of people are happy to keep renting while those in a council home can investigate their right to buy. Ultimately, you need confidence in the location as well as the property. Or else, you’ll never be truly happy. And that’s the least you deserve.