The Rough Guide to Property by Rough Guides

Author:Rough Guides
Language: eng
Format: epub
Publisher: Apa Publications
Published: 2015-10-28T04:00:00+00:00

Other ways to buy

› Shared ownership schemes: These usually involve new properties provided by housing associations. You take out a mortgage to buy a share in the property of between 25% and 75%, and pay rent to the housing association for the amount of the share of the property you don’t own. You can increase your share at a later date. See GOV.UK for more information.

› Help to Buy mortgages: A government-backed scheme to help buyers who are struggling to save a large enough deposit. They work like standard mortgages but the government guarantees some of the mortgage. There are two types of Help to Buy mortgage: mortgage guarantee and equity loans. With both it should mean that more people can buy with a deposit of just 5%. See the Help to Buy website for more information. To find out if you are eligible and which type of mortgage is right for you, speak to an independent financial adviser or mortgage broker.

› Buying with friends: If you can’t afford to buy on your own, why not join together with someone else, such as a friend or a colleague, to buy a place together? Discuss the purchase thoroughly and ask a solicitor to draw up an agreement between you. It’s extremely important that you set ground rules for living in the property and what will happen if one person wants to leave or sell up. See the National Association of Estate Agents (NAEA) website for further guidance.

› Right to Buy: If you are a council tenant you may be able to buy your property at a discount of up to £104,000 in London and £77,000 in the rest of the country. See the government’s Right to Buy website to find out if you’re eligible.

☞ TOP TIP If you are having trouble getting a mortgage, see if a family member or friend will act as guarantor. This means that, in the worst-case scenario, where you are unable to pay your monthly mortgage repayments, your guarantor is legally bound to make the payments for you. This type of mortgage comes with risk, so guarantors should seek independent advice.

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