The housing market in London is in a booming phase and before the prices are astronomical, a first time property buyer in London still stands a chance to hit the jackpot. This is, however, possible if you know the property market well and you are able to make the right moves.
In this article, we will find out how you can be a property owner even if it is for the first time you are investing in your dream nest amidst all adversities prevailing in the property market in London.
How the property market would take shape in the current year (2014) could be ascertained to some extent by observing the trend from the very first few months of the year. As of February 2014, the minimum deposit that you were expected to shell out as a first time buyer was a whopping £50,000 while in few other places in London, it was as high as £45,000. The main trouble with the figures is that while the cost of living and cost of property rises, the wages are not rising in tandem with the growing expenses.
The best way to enter the property market and explore your possibilities of survival includes a thorough inspection. Do not get deterred by the rising prices. Experts are of the opinion that despite the high figures, there is still opportunity for the brave. Let us see how.
First and foremost, you can try boroughs other than the ones located in Central London. In these areas, the prices have still not risen and are quite affordable for the investor. Few of these places include Hounslow, New ham, Bromley, Barking, and Greenwich. In these areas, you can find affordable property for around £100,000 and £150,000. Not only that if you are not interested in buying property at these locations, you can still opt for flatshare. There are many rental property market agents and service providers that can offer the necessary assistance in locating a good property for you.
Another way of getting access to the property market in London is by opting for areas that are less in demand. For instance, if you are looking for a landlord that offers room to rent and there is a good deal of tube connectivity, hiring a room in areas like Bermondsey and Latch mere Road should not be a problem.
Mortgage and first time buyers in UK
When you are exploring the property market for the first time for investing in property and you intend to avail mortgage, you might be in for a shock. But that does not mean the scenario is all that disappointing. Given the fact that there is a broad spectrum of mortgage options for homebuyers might make you spoilt for choice.
Prior to applying for mortgage, you need to set your finances straight. Are your finances in doldrums? Will you be able to repay the mortgage within the stipulated period of time, and what type of mortgage option will you opt for? These are few aspects that you need to take into account.
Apart from the above, remember, you will have to undergo credit check. Also, the new norms pertaining to mortgage that are introduced from time to time should allow you to qualify for a mortgage without hassle.
Whenever you apply for mortgage, the lender will assess your repayment capacity. He will weigh the regular financial obligations you have against the extra mortgage repayment that you are expected to make till the time you don’t pay off your loan in full.
Government’s Help to Buy scheme
Last but not least, you can always avail Help to Buy scheme that is offered by the Government. This is a scheme that is aimed at helping the first time buyers in United Kingdom, particularly with regard to residential property. Under this, a first time buyer can avail a number of schemes that include Mortgage guarantees, Equity loans, Buy new homes, and avail Shared Ownership property.