One of the biggest purchases you will ever make in your life is that of buying a house, if not the biggest outright and so it’s perfectly understandable that you’d want to take your time to ensure you’re employing the right approach. Of the many considerations to take into account when looking to buy a house, a major one is affordability and what impact that will have on the experience you have with paying off your mortgage and working towards the full ownership of your home.
Some great advice you might have already received time and again is that of taking your time to make sure all your financial ducks in a row, ensuring you have sufficient funds for the deposit and that you can manage to pay off the monthly instalments on your mortgage for what is going to be a considerable amount of time to come. How far and long are you on your savings for the deposit however and what happens if your dream home is on the market right now and the market seems to be really hot with a lot of property moving?
Well, you can speed the process up and it actually applies to any other case in which anyone would want to buy their dream home, that being the fact that now is simply the perfect time. If you can put the finances together, do whatever it takes to do so, otherwise in a matter of mere months from now the property market will have moved on and you might not be able to add to your deposit savings as quick as the property market grows.
As you know, property is the one class of assets which appreciates in value and price and so if you are saving towards putting down a deposit on a mortgage for your dream home, you need to make sure your savings at the very least match the appreciating property prices.
Cue the micro-lending industry for an unlikely solution to your pressing financing issue, in the form of a Help to Buy Equity Loan Scheme. There are many costs associated with buying a property and we could all do with every of help we can get to off-set those costs and that’s exactly what the Help to Buy Equity Loan Scheme does.
You see it really helps to be in the know because as much as the Help to Buy Mortgage Scheme ran its course at the end of 2016, the related Equity Loan Scheme is very much still a viable option for prospective home buyers to and even existing homeowners to effectively get assistance in buying property of up to £600,000 in value.
What this means is you can borrow up to 20% of the value of the property you want to buy from the government, interest free (for five years) if buying a home in London and you live outside of the city, while those who live in the capital have up to 40% available to borrow on the same terms. All you’d need is a 5% deposit as well as a mortgage which would then cover the remaining balance.
For further information on this and other mortgage schemes are available, see this blog post from Mr Lender.