Mortgages: Help for first time buyers
Putting that first foot on the property ladder) is becoming increasingly difficult for first time buyers (FTB for short. With house prices shoot when you see a wannabe FTB, the money to buy your own house, is nearly impossible.
So, what is there for people who buy their first home?
One option is to buy with a friend. Plenty of room mates who have rented together, on sale now together. It makes sense, and with two incomes instead of one, you may be able to get a mortgage okay.
Of course, you have to discuss “what ifs” beforehand. For example, what happens if a person wants to sell, but the other not? So do not set the ground rules and make sure that you are looking for any of your own lawyer about the legal documents. This means that you are both protected should the friendship go wrong.
The Tenant mortgage
There are now mortgages available which take into account, to the expected additional income from a lodger. A homeowner can save up to 4250 EUR per year tax free under the rent-a-Room scheme. This amount can not afford the difference in the position to be able to afford a mortgage.
Ask the parents!
Many FTB’s now get help from their parents when taking out a mortgage. The most common type is the provision of the deposit from them. If this is not possible to determine whether it is a part of the house you buy, you can buy back later.
Another possibility is to ask that they act as guarantor. This means that if you do not meet your monthly repayments, they are legally obliged to do this for you. However, this is a big financial commitment for them so they do not want!
Graduate Mortgage
You can check whether you qualify for a graduate mortgage. This allows you to borrow more than the standard amount of their salary, with the help of a guarantor of the foundation. The guarantor could be your parents.
Graduate mortgages differ from standard guarantor mortgages, that the guarantee is only for the portion of the mortgage, which is on the package. In the latter type of mortgage that is guaranteed for the entire amount of mortgage.
With a graduate mortgage, if you have enough money to make the entire loan, the guarantor is released. This is a good option to take if your parents like this not in a position to guarantee the whole mortgage, but perhaps only a part.
Expand your mortgage
Most mortgages run for 25 years. If you take a longer, however, say more than 30 years, it means your monthly repayments will be lower. This is because they are spread over a longer period.
Key Worker Living Program
If you are a “Key Worker”, someone who works in training police, health, fire or prison services, you can try the Key Worker Living Program.
EUR 690 million will help the government for the program in an attempt to provide Key workers who live near where they work made available. At the moment it is only in London and the southeast.
The program helps with a variety of ways to offer low-interest loans or ownership, depending on the type of program in your area.
Right To Buy Scheme
If you have lived long in a local authority property for at least two years, you may be able to buy your property at a reduced price.