UK Finance Mortgages Trends Data for 2019
Let’s face it – getting a mortgage is now harder than ever. With the requirements for at least a 10% deposit, no rental charges, debt or breaks in your employment often looked at factors during your application, it is small wonder that many of our young adults think they will never be able to own property in their lifetime.
With headlines such as Short Term Loans Bad Credit UK hitting the news screens, it’s easy to fall into the belief that a mortgage is simply an unattainable dream. After all, with the economy where it is at present, it’s hard enough to make ends meet without having to worry about find thousands of pounds to put down as a deposit.
But what can we do to break from council and rented housing to that sort after status of home ownership? Well by looking at the current trends in the market and being spending savvy, the ideal of owning one’s own home might not be such as distant dream as previously thought.
The housing market is known for its trends, which come and go on an almost regular basis. You might have heard your grandfather comment on the bad house prices or the market crash and that’s because these events come around with regularity. Whilst there are always houses on the market, waiting for the right time to buy can be key to ensuring an affordable mortgage.
The current trend in Britain for house prices is that they are going up, there is no denying it. However, the government is also trying to retaliate this fluctuation in the market where it concerns younger adults, who will not have had the same financial advantages as their parents and grandparents.
Statistically more and more young adults under the age of 35 are living from paycheck to paycheck, with the average cost of living exceeding their minimum wage standards resulting in more borrowing, private rent, and reliance on benefits. None of which bod well for the housing economy.
Thus with increased debt, lower wages and living expenses on the rise, it looks as though the housing market might face another crash in future years. But what about now? Well, the government and banks have teamed up with new first-time buyer ISA schemes to encourage future homeowners to save as much as £200 a month towards a brighter future. With this scheme, the government is offering to pay a certain amount towards a new home based on the monies saved. So it’s worth looking into.
Short Term Loans Bad Credit UK
Getting a mortgage is hard enough without having to worry about your bad credit score. A short term loan with high-interest rates might sound like a counterproductive idea but is one of the quickest ways of rebuilding your bad credit, provided that you can pay on time and in full.
How to Get a Mortgage
Banks and mortgage lenders are more than happy to sit down with prospective new homeowners and talk about their financial probabilities of getting their first home. Once there, the mortgage broker will ask about your incomings and expenditure, savings and other means to best gauge what amounts can be responsibly offered.
For first-time buyers things such as rent will come into play here, so what many younger couples are doing is to rely on the bank of Mum and Dad, either by moving back home temporarily or borrowing some money to provide a bigger deposit.
Another scheme available with most banks is for parents to act as guarantors for their children so that their mortgage repayments aren’t as high.
But whatever route you choose to go through, the first step is getting your finances in order as much as possible. The more savings and less expenditure you have the better your chances.
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If you are considering a loan please make sure you can afford to repay it back in time. Late repayments can cause you serious money problems. For help please go to moneyadviceservice.org.uk