For the past five or so years, it has become increasingly difficult for first time buyers to get themselves onto the property ladder. At first institutions weren’t lending and now that they are, massive deposits are often required.
The first time paradigm
As the effects of the global financial crisis seem to be easing, or at least the consensus is that the worst is over, it is becoming slightly easier for a first time buyer to take their first steps towards ownership. It should go without saying that the free-lending deposit-free days are well and truly over and now people are required to present substantial deposits in order to receive a mortgage offer. Whilst this is down to the sins of lenders feeding the sub-prime mortgage market in the middle of the last decade, the game has changed for everyone now and there are new rules of engagement.
If you are thinking about taking your first steps onto the property ladder, it is wise to visit an independent financial adviser, to get an idea of exactly what you can borrow and what the terms of the loan are likely to be. It is usually best to talk to someone who specializes in your local area, to ensure that they are conversant with any peculiarities in the system. If you live in Belfast for example, talking to an IFA who can offer specialist property legal advice in Northern Ireland will be much better than one who deals with the entire UK.
An IFA will be able to explain to you the rates offered by lenders, with information regarding the level of deposit required and above all the amount of money you will be able to borrow. It is really important to get this information clear in your head before you start looking seriously at properties with the intention to buy. Obviously, if your initial thoughts on what you may be able to borrow are vastly higher than the actual fact, your expectations on the type of property that you want will have to be reduced, so it is wise to get that information upfront. Someone offering specialist property legal advice in Northern Ireland, or whatever area you are wishing to locate to will be able to also provide details about any schemes available to assist in the purchase of your new home.
Considering your options wisely
Before you make your final decision on whether or not you are going to purchase a property, it is a good idea to weigh up all options wisely. If your monthly mortgage costs are likely to be the same, if not a little more than your rental costs are at present, how will you manage to replace the washing machine when it breaks for example? Remember also that if you are the owner of a property, you are responsible for the entire property and if something major breaks or fails, you need to have it repaired, rather than getting the landlord out.
AUTHOR BIO: Anna Mathews has written many articles on a range of subjects, including helpful property legal advice northern ireland for a range of different websites. When she is not writing, Anna is often found arranging soul classics to be played in her function band.