Here’s how to become a homeowner in 2021

Finding your place on the property ladder is increasingly challenging, as house prices continue to rise at a rate difficult to keep up with on the average UK wage. 

Indeed, whether you are looking to buy your first home, purchase a buy-to-let, or find a home to settle down in after years of renting, finding a property you desire but can also afford has never been trickier. 

This is especially true if you have to live in a city for work because property prices will reflect the enormous amount of people demanding homes in your area and the relatively few properties to accommodate everyone.

As a result, prices will inflate, making it harder for you to justify buying a home and leave you stuck in rental properties. 

However, this is not to say it is impossible to buy a house. 

In fact, there are a number of methods you can use to step onto the property ladder without overstretching yourself financially or putting unnecessary pressure on yourself to find the additional money for mortgage payments.

Here’s how to become a homeowner in 2021:

You could apply for a mortgage that suits your requirements

One of the most common approaches to buying a house is to apply for a mortgage. 

Although everyone is aware of what a mortgage is, there are countless different types to consider, and choosing the right option for you is difficult.

If you decide upon the mortgage route, finding the right package for you is of the utmost importance. It is no exaggeration to say that your mortgage package can define your long-term financial health, as the rates of repayment can vary wildly.

One type of mortgage to be aware of, for example, is a Right to Buy mortgage. A right to buy mortgage is a scheme that helps council tenants purchase their rental properties, even if they have bad credit. This is crucial because bad credit can normally hinder your mortgage application, so a scheme like the Right to Buy mortgage may be of interest if you find yourself in this situation 

Streamline your overheads to save money

If you’re looking to buy a property, it may be necessary to change your spending habits to compensate. This is particularly relevant if you’ve never owned a property before and therefore have no experience of the expenditures necessary with homeownership.

The most obvious expenditure is the purchase of the property itself – or, more likely, the mortgage payments you’ll need to factor in – as well as any property checks and estate agency fees that may be applicable. 

Even if you have factored this in, there will likely be maintenance costs and unexpected surprises during the duration of your ownership – in the form of burst pipes or a new roof, for instance. 

To compensate for this, reassess your current overheads and decide whether you can lower them by living more frugally. This could include avoiding car lease deals, cancelling expensive gym memberships, and limiting yourself to one or two holidays per year.

The location can make a huge difference

Deciding upon the location of your property is one of the most important aspects to consider when choosing a house. 

This is because house prices vary wildly depending on the area. Although this may not apply to you if you have to live in a certain area because of your job, if you have the added flexibility, consider moving away from expensive cities and commuter belt areas, which tend to inflate property markets instead find better value elsewhere.