April 21, 2021
The property ladder has been raised for many, and it’s increasingly challenging to come anywhere close to getting on it for low earners or those trapped in the endless rent cycle.
Unfortunately, the end of last year saw the UK near the top of a list of countries where it’s most difficult for first-time buyers to get on the property ladder. This is especially regrettable in a time where people are feeling increasingly stifled by their circumstances, owing to the pandemic and all its restrictions.
Still, if you do desire to finally get on the property ladder once and for all, then know that there’s hope in doing so. The 3 suggestions listed below should help you realise that ambition.
Utilise the Help to Buy ISA Scheme
You can no longer apply for a new Help to Buy ISA account as of November 2019. However, if you opened one before that date, you should start or resume contributing up to £200 a month into the account until November 2029. The maximum total you can put in is £12,000.
If you put the full £12,000 in overtime, you could stand to gain an additional £3000 as a bonus from the government. If you’re looking for a property with a partner or friend with their own Help to Buy ISA in effect, then obviously, the tallied bonus becomes substantially higher.
Because of how helpful this scheme is, it’s been described as a lifeline for the prospective first-time buyer, in some circles. If you’ve missed the boat then that’s bad luck, but in the event you or your prospective co-resident may have set one up years ago and forgotten about it, kick it back into gear now.
Be Open to Receiving Help
Sometimes pride can get in the way of better life choices, so be open to receiving any help that’s offered. It might be that the bank of mum and dad may be willing to help, or that friends may be willing to move in with you to help their search. So long as you set a few hard rules to minimise disputes, all should be well.
Consider gifted deposit mortgages too, whereby trusted friends and family can contribute to your deposit. This is often a go-to solution for many first-time buyers, giving them the extra push that they need to get over the finish line. However, rigorous anti-money laundering rules mean that a clear paper trail in these arrangements must be established.
Clinch a Positive Credit Rating
Lenders are more inclined to give you money if you demonstrate you’re financially responsible. Paying your bills on time, fulfilling sizeable debts, and cutting off irresponsible friends or family from joint accounts may improve your credit rating, thus helping your situation considerably.
Your finances reflect your character. It may be that you need to make seismic life changes, but that’s perfectly fitting, as buying a home is an enormous life change too. So long as you’re prepared to hold yourself accountable, the process of securing your first home should become that little bit easier overtime.