Since the last two decades, banks and estate agents have been providing more versatile options to the first time buyers of a home. These options have enabled many young and newly married partners to buy a property; a luxury that they couldn't afford in the recent past. It is estimated that nearly 70 percent of the UK population who is legally entitled to purchase a property, can easily do so. Apart from these potential buyers, almost 95 percent dream of buying a dream home. This said, what about the 25 percent of home owners who may find it hard to buy a home? The good news is that there are many options for the first time buyers, only if they know.
If you have a good credit history then it is the time to head straight to the drawing board and start planning. If not, first time buyers should seek the help of a financial advisor. Every large company employ these experts whose only job is to help the buyers get a loan. Most probably, the loans will be variable which means that the lender may increase the interest rates if the Bank of England chooses to increase their interest rates. Also notice that many lenders increase the rate of interest without any official increase, primarily to secure their own financials. Anyway, variable loans are always an option for those who are desperate to own a property.
Right to Own
Another much overlooked option for the first time buyers is the 'Right to Own' scheme. If you have been living in a property overseen by a Housing Association or a council home then you have a right to own the home at a steep discount. The only restriction is that you must be a good tenant who pays the rent and utility bills, regularly. You must also be living in the same home for five consecutive years. Actually, you can ask the owners to consider you for the scheme at the beginning of fourth year. For many, this is still the best option.
Long Term Fixed Rates
Another option for the first time owners is to get a long term fixed rate. The only drawback to this type of loan is a fine on the early payment of the loan. Recently, Nationwide has started giving 25 years loans at 6.79 %. It is not the only fixed term loan. There are now more than 140 types of different long term fixed loans offered for ten years or more.
100 PLUS Mortgage
To ease of the burden for the first time buyers of the UK property, certain lenders have started providing 100% plus mortgage. As the name suggests, the loan is approved for more than 100% of the value of a property. This is done to overcome any additional costs associated with buying a property. These costs can include fees of the lawyers, financial advisors and other legal matters. It is estimated that a typical first time owner of a UK property spends around £16,000 in such charges, the very first year after a purchase.
Of course! The options for the first time buyer are on the rise, every year. There are various other methods to get on the home ownership ladder, including Social Home Buy, Key Worker Living, Joint Ownership and Rent to Buy. The list is limitless, only if one knows how?