How to Afford to Buy a Home in Essex: Your Problems Solved
News is that house prices for the north Essex region are set to increase once more, with some predicting that 2016 will see the biggest increases yet. Property hunters could see rises of up to eight percent in the region. If you have your heart set on buying a home in Essex, but you don’t see how you can afford it, take a look at these ideas.
Low Salary Solutions
If you want to buy but you are not earning a high income, you could be eligible for a shared ownership scheme. The system of shared ownership is applicable to new builds, and many people can access the scheme providing they are not earning too much or too little. In a shared ownership scheme you buy a portion of the property – between 25 percent and 75 percent – so you don’t have such a large deposit or mortgage. You then pay rent to a housing association. If you decide to sell, you split the amount you get with the housing association.
Mortgage Solutions for the Self-Employed
If you are a freelancer, you own your own business, or you work for yourself, it has in the past been more difficult to get a mortgage than if you had a standard job according to http://www.beresfords.co.uk. But you can get one when you supply two years or more of statements and accounts to prove how much you earn – the only person who won’t be considered for a mortgage is someone on benefits.
What to Do If You Don’t Have a Deposit
Houses for sale in Colchester are normally purchased with a mortgage, and to apply for a mortgage you generally need a deposit – but that deposit can be somewhere near 50k in some cases. If you do not have a substantial deposit you can apply for a mortgage using the Help to Buy scheme – this requires a 5 percent deposit. You then get a loan for an extra 20 percent so your full deposit will work out at 25 percent, meaning you have more mortgage options.
Also, the obvious solution to this problem is to save money until you do have a deposit. You may need to simply make a few cuts to your spending, or you could have to make major lifestyle changes such as moving in with your parents.
Too Much Debt?
If you have plenty of debt it’s not the end of the world. But since mortgages are based on your disposable income you may not be able to borrow much after the repayment amounts are subtracted. You can look at consolidating debt and paying off what you can before you apply for a mortgage.