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A Third of UK Tenants Worry They’ll Never Own a Home

The UK is in the midst of a housing crisis. There simply aren’t enough homes being built for the growing population. This is driving house prices up, and keeping millions of people from getting onto the first rung of the ownership ladder

A recent survey revealed that a third of tenants in the UK are worried that they’ll never be able to afford a home of their own. But the problem is much more complex than unaffordable housing. 

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Young tenants struggling on below-average wages are struggling to find affordable rents in the private housing sector. Rents in the UK are also high, and they’re continuing to rise. 

The UK Government has attempted to tackle the issue of buy-to-let mortgages in recent years. An explosion of buy-to-let ownership in the UK has sent both rents and property values skyrocketing. 

Mortgage interest tax relief was removed in an attempt to rebalance the market. But rather than helping tenants and young house buyers, the move reduced the supply of rental properties in many areas of the country. 

Those lucky enough to already have a rental property have also been affected. Many landlords decided to pass on these higher costs to their tenants. The UK Government’s tax changes resulted in some very steep rent rises across the country. 

Unless young people get help with the purchase of their first home, they find it very difficult to afford homes in many areas of the UK. If you’re a young person on an average wage in the south and south-east of the UK, raising the deposit needed to buy your own home might take more than 10 years. 

But even if you have the deposit, your salary may preclude you from buying a home in your local area. One in ten people can’t buy their own home because they can’t get the mortgage they need. Hugely inflated house prices and a dearth of affordable home loans are consigning millions of young people to a life of renting. 

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So what are people doing in order to put roofs over their heads? One in 10 young people is sharing a home with friends or housemates. People are living with parents for much longer than they were just 20 years ago. Indeed, it’s not unusual for reasonably well-paid people to live in the family home well into their 30s. 

Renting homes isn’t as lucrative as it was for landlords just a few years ago. While this has resulted in rent increases, there is a positive aspect to consider. A lot of landlords have reached the conclusion that buy-to-let just isn’t lucrative enough. There is too much red tape. And there are too many costs for too few rewards. As more landlords decide to sell houses quickly, property prices in certain areas may begin to fall. Whether that’s enough to make them more affordable for people on average incomes, only time will tell.

6 Common Mistakes Made by First-Time House Buyers

The mistakes made by first-time buyers are too numerous to mention in a single article. House buying is a minefield, and it’s normal to make a few mistakes along the way. But knowing what those mistakes are before you buy your first property should help you to secure the home of your dreams without too much stress and hassle.

The main aim is to find a suitable house in a desirable area for a great price. This challenge might sound easy, but it rarely is. And if you don’t have prior experience, you might be in for a tough time.

But worry not! We’re here to help you navigate your first home buying experience. Avoid the following mistakes, and you shouldn’t run into too many difficulties.

1. Not checking your credit score

You can save yourself an awful lot of time by checking your credit score before you start looking for mortgages. The last thing you want is to put yourself through an application process you can never complete. And if you know that your credit score is less than perfect, you can limit your search for mortgages that cater to situations like yours.

2. Not identifying your priorities

Among the most common mistakes made by first-time house buyers is a failure to identify property priorities from the outset. If you simply start bidding on homes you like, you may end up making a huge mistake. Consider the following questions:

  • Do you need to live near your place of work?
  • Do you need good transport links nearby?
  • Do you want a big garden?
  • Do you prefer open-plan living?
  • Do you need off-street parking?
  • How many bedrooms do you need?
  • What’s your budget for renovations?

Get these priorities clear in your mind, and you can fine-tune your property search for success.

3. Not getting your mortgage arranged first

How do you know you’ll get the mortgage you’ll need if you haven’t been approved? Save yourself a lot of time and heartache by getting pre-approved before you start putting in bids. This way, you’ll know exactly how much you can spend. Whittle your prospective homes down according to your budget, and you won’t be left embarrassed further down the line.

4. Aiming for the very top of your house buying budget

So, you got a surprisingly high mortgage offer that expanded your options significantly. Don’t make the mistake of looking for houses at the very top of your range. Judge houses by their merits rather than their price-tag. And don’t forget that there are plenty of hidden costs involved in buying a home. Once stamp duty, fees and legal costs are factored in, the cost of buying your first home could be way higher than you bargained for.

5. Buying with your heart

Of course, there’s always going to be an emotional aspect to buying a first home. After all, this is going to be your refuge from the outside world for quite some time. But don’t get overly attached to any particular house during your search. Try to take an objective approach to property buying. Is it big enough? Can you afford the repairs and renovations? What’s the school like?

While your preferred home might look how you imagined it, there’s far more to consider. Be practical and pragmatic. If it’s not going to serve your needs on a day-to-day basis, move on to the next option.

6. Not getting a survey

House surveys are crucial for first-time house buyers

Understandably, you want to get into your new home as quickly as possible. But failing to carry out the necessary structural checks could backfire spectacularly. Once the house becomes yours, any defects become your responsibility. And that can be a very expensive mistake.

If you’re getting a significant mortgage, the chances are your lender will insist on a comprehensive survey. This will look for everything from damp in the walls to movement in the foundations. But if you don’t need a large mortgage, you may have the option of saving a few pounds by skipping the survey. This is a huge risk, and it’s just not worth taking.

Buying your first home should be fun and exciting. But don’t get too carried away with the romance of it all. Proceeding with caution maximises your chances of a successful first purchase.

For more information on how https://www.sellpropertyfastcash.co.uk can help you sell your house fast please visits our contact us page.

Sell Property Fast Cash,
Mclintocks,
Summer Lane,
Barnsley,
South Yorkshire,
S70 2NZ
Telephone:0800 68 99 42

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Getting on the Property Ladder: A First-Time Buyer’s Guide

The UK housing market is still in rude health, but raising finance is still difficult for first-time buyers. The days of the 100 per cent mortgage are long gone. If you’re a first-time buyer trying to get on the property ladder, you need a good credit rating and a hefty deposit.

Buying your own home for the first time is a minefield. You may have to jump through hoops to raise the finance you need. That’s why we’ve put together a brief list of tips for getting on the property ladder.

Consider shared ownership

Mainstream banks and mortgage providers now lend between three and five times the applicants’ annual salary. If the home of your dreams requires more than this, the chances of securing an approval are low.

But you can tip the balance in your favour by looking for homes that offer shared ownership. You get to buy a share in the property (typically 25 to 75 per cent). The rest of the house is owned by the developer or a housing association.

Shared ownership drastically reduces the mortgage and deposit you need. But it’s not without its drawbacks. You may be required to pay rent on the share you don’t own. And you must have permission to make any significant changes to the property.

The UK Government runs three schemes under the Help to Buy initiative: Shared Ownership, Equity Loan and a specialist ISA. Check out the website for more details or talk to a financial advisor who specialises in property.

In most cases, you’ll get the option of buying the rest of the property at a later date.

Team up with someone you know

Getting on the property ladder

There’s nothing stopping you from buying a home with someone other than your partner. For example, if you and your best friend want to buy together, you can apply for your mortgage together. This means you only need to find half the deposit. And you can combine your salaries to increase your budget.

Find a guarantor

A few mortgage providers will allow you to assign a guarantor to your mortgage agreement. This usually has to be a close relative, however. The person you choose must demonstrate that they are in a position to make the repayments if you fall behind. As soon as you miss a payment or two, the institution will chase the guarantor for the arrears.

A guarantor will usually need to provide collateral in the form of their own property. However, other forms of collateral are sometimes accepted.

By finding a guarantor with the necessary assets and a good credit history, you may be able to apply for a larger mortgage. And the lender may consider accepting a far lower deposit. Being a guarantor is a good way for parents to help their children onto the housing ladder without handing over huge sums of money.

Don’t pull the trigger until you’re ready

Getting on the property ladder

Being in a hurry to move into your first home is understandable. But moving too early can end up costing you money and unnecessary stress. Don’t buy your first home until you are financially stable.

If you have to move into your parents’ home while you save your deposit, so be it. Paying rent to a landlord means you’re paying off their mortgage instead of your own.

Before you sign on the dotted line with your mortgage provider, crunch the numbers as many times as you can. Will you have enough money after paying your mortgage to live your life? And what happens if you suddenly lose your job? Do you have a financial buffer or contingency plan?

Buying a first home is a big step. This milestone event often happens at a time in our life when we haven’t yet reached our financial peak. While things might be tight, make sure they’re not dangerously so. If you lose your home to repossession early in life, getting back on the property ladder later might be almost impossible.

If your first-time house purchase didn’t go to plan, we can help you move on fast. We buy houses for up to 100 per cent of their value. This means you can raise the funds you need for debt repayments, your next purchase or to avoid repossession. In many cases, we’re able to complete the purchase of a home within just four weeks.

For more information on how https://www.sellpropertyfastcash.co.uk can help you sell a house fast please visits our contact us page.

Sell Property Fast Cash,
Mclintocks,
Summer Lane,
Barnsley,
South Yorkshire,
S70 2NZ
Telephone:0800 68 99 42

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