Everyone dreams of owning their own home one day, but the rise of house prices has made the journey to get there far from straightforward. You might have your eyes set on a perfect apartment but getting onto the property ladder might require an entirely different approach. From Shared Ownership to joint ownership, here are some of the best alternatives to getting a mortgage:
Many people end up renting homes in the short-term with the goal of eventually moving out into their own property. However, given the high cost of renting currently, this short-term arrangement can often take longer than planned. If you are itching to live in your own apartment, but don’t yet have the money to use Shared Ownership, affordable rent is a great way to save a bit more to buy a home in the future.
Wondering what affordable rent is? If you pass the criteria, affordable rent enables you to rent a home at 80% of the market rate. To take part, you need to make sure you don’t currently own a property and have a household income of around £18,100 to £66,000. At Square Roots, we will offer affordable rent on many of our upcoming properties - register your interest to find out more!
Shared Ownership is one of the most popular alternatives to buying a home outright. What’s not to like about a scheme that allows you to enjoy all the benefits of homeownership, without having to save a huge deposit to get there? Shared Ownership enables you to buy a share of your home while paying subsidised rent on the remainder, resulting in a much smaller deposit.
While the whole property doesn’t belong to you, you’ll be able to live in your home as if it’s your own. Additionally, the ‘Share’ in Shared Ownership isn’t permanent - Shared Ownership is a pathway to full home ownership. That means that if your financial circumstances improve, you can buy more shares in your home through ‘staircasing’, which also reduces the amount of rent you pay.
Move in with a partner or friend
Buying a home can be a big financial responsibility for one person to take. So why not buy a home with your friend or partner? By dividing the financial responsibility between two or even more people, the daunting process of saving a home immediately looks more appealing. However, be sure you think clearly before taking the plunge for joint home ownership - living together can be a big test of your friendship/relationship.
Ask the Bank of Mum and Dad
If you are fortunate enough to be able to call upon your family for help, many first-time buyers look to their parents to help them get on the property ladder. Saving up for your home deposit is the longest part of the home-buying process, but your parents could give your savings a much-needed boost.
For example, your parents could opt to loan you some of their savings to help reduce your monthly repayments, or even step in as a mortgage guarantor - someone who pays your mortgage repayments if you can’t.
If you are finding it difficult to buy your home with a conventional mortgage, Square Roots could have the solution you need. Whether you want to take advantage of Shared Ownership or Affordable Rent, we aim to turn the dream of owning your first home into a reality.< Back to News & Events