Data recently released by Halifax shows that the number of first time homebuyers is at the highest level since 2007, with 2014 seeing a 22% rise in purchases compared to last year. Those who are eager to put their foot on the property ladder, but are apprehensive about cost, should consider the following.
Help is available
You may think you have to go it alone with your savings when wanting to pay a deposit on a house, but recently plenty of support has been made available. While house prices are continuing to remain high, banks and buildings societies are offering better mortgage rates and the UK Government has set up a Help to Buy scheme.
Help to Buy was introduced in 2014 to specifically help younger people buy a home. Offering a deposit of just 5% on properties on the market being sold for a maximum of £600,000, the Help to Buy scheme makes purchasing a property affordable. Check out the official website for more information.
Spare rooms can be rented
If you’re concerned that you won’t be able to pay the mortgage on your new home, remember that you could always rent out your spare rooms. A lodger’s weekly or monthly rent will help you with mortgage payments and utility bills, with the added bonus of potentially a close friend for years to come. Take a look at websites like Spareroom and Gumtree to see how you can rent out the extra rooms in your house and make a helpful profit.
It is an investment
Whether you end up living in it until your dying day, or you end up selling, your first home will be a valuable investment for your future. From being able to put money into refurbishment and home improvements to the potential of becoming a landlord and renting your property out once you’ve moved on, you have the potential to do what you wish with your home.
With there being an improvement in the UK job market in recent years, people’s personal wealth and disposable income has increased. Younger adults, especially those without children, find that they have more disposable income than compared to previous years, which can easily be used to make small mortgage payments.
Paying a mortgage can be more constructive than paying rent
When you’re paying rent on a property, it can be difficult to see where the money goes, especially if your landlord puts little effort into keeping tenants in a comfortable home. With a rental property, should a maintenance issue occur, then you could find yourself spending a couple of days waiting for it to be fixed. Whereas, in your own home, the problem can be fixed relatively quickly.
The money you pay for a mortgage could be lower, higher, or the same as the amount that you pay when renting, yet it buys you the freedom to have your own home, and not to have to be concerned about issues with your landlord, such as them selling the house.
A house that you rent can be difficult to make a home, especially if you’ve got specific dreams of how you’d like your home to look. With your own house or flat, you can decorate however you wish, giving you the opportunity to really make your house your home.
If you’ve decided to take the leap and are buying your first home, then we can help with your move. Our friendly, professional removals team are experienced with helping people relocate, whether families, or single adults. Get in touch with Intransit today to find out about our packing and removals services. Call us on 01225 759200.