There’s always a delicate balance to be struck when trying to figure out how to get your mortgage deposit sorted out – since buying property is probably the biggest expense you will ever have, it’s worth paying careful attention to what’s out there and figuring out what the best course of action is for your needs and preference. Here, then, are three ways that can help you get your mortgage deposit sorted out:
Saving as much as you can
The more money you have saved and put down as deposit, the cheaper your loan and mortgage will be in the long run – because then, you have much less interest to pay. However, there are two factors to consider here: time and availability. Naturally, the more time you spend saving, the more savings you will have amassed and the more you save in the long run. However, the longer you wait before getting that mortgage, the more years you may spend paying rent – and in the meantime, you may end up having to pass on great potential mortgage deals. For people who are not in a hurry, saving some money first certainly has its advantages.
Government help and assistance
The government is prepared to help many individuals get a mortgage, because it realises that nowadays, there are a lot of barriers for many people. The government, under its “Help To Buy” scheme, can help you with this by giving an interest-free loan for up to 20% of the said property’s value that you can use as deposit for the mortgage – it may require you to put down 5% down as well, but this is still a big help. That’s one fifth of the value of the property – sometimes as much as one fourth of the mortgage where no interest has to be paid on.
Shared ownership options
Shared ownership has helped a lot of people over the past years – it basically means making a deal with a housing association. The deal, in essence, is simple: you pay half of the property’s price (by getting a mortgage or paying the deposit) and the association pays the other half. You then pay rent to the housing association for the half that the association put down. Whilst you initially do not own the whole property, there are often options to scale the ownership up later on to 100%, which means you can have the option of buying the rest of the ownership from the association later on down the road.
Whilst securing and purchasing a home or property is not always a simple matter, there are many options out there, and it pays to look around and seek help from a qualified and experienced London mortgage broker as well. Often, people are not aware that these options are available to them, and lose out on great deals.