London is somewhat a property bubble where you will find soaring rents and huge asking prices. With so many people stuck in the rental market for a longer period than ever before, many can be unprepared for the sky high prices and fast paced London property market.
If you have chased after property that you cannot afford, put in offers that have fallen through, or are struggling to find your perfect pad, here is some advice for buying in London.
All About Location
This is always important in a property search, but nowhere more so than the big smoke. Your preferred borough is probably the favourite of tons of other property hunters. Instead, widen your search to the surrounding areas or try up and coming districts, where you may be able to find a larger property for your budget.
If you are struggling to narrow down an area, seek the advice of a company who specialise in finding buyer’s a home.
Seek Out Your Parents
A larger number of first time buyers are turning to their parents for help, whether it’s for a large enough deposit, or monthly remortgage payments. If your parents are not able to provide funds, an alternative is to ask your parents to sign as guarantors. This will make you a safer financial risk in the eyes of the bank, which could help you to secure a mortgage.
Buy with Your Friends
There is nothing more soul crushing than finding your perfect pad but realising its way out of your price range. If you are single then why not join forces with a friend? With both of your wages combined, you will have a much larger budget to play with. Just make sure you choose wisely as buying with the wrong person can be catastrophic!
There is a type of mortgage called ‘tenancy in common’ which will allow two people to buy together and each own 50% of the property.
Choose a New Build Property
A new build is an excellent way of getting onto the property ladder. Property developers are often keen to selling to first time buyers, particularly because they have no chain. As such, developers sometimes offer equity loans to first time buyers.
One bonus of choosing a new build is that you can custom finish your home. Choose your bathroom suite, kitchen finish and carpets, then enjoy moving into a finished house.
Help to Buy Scheme
While this scheme is available throughout the country, Help to Buy may be particularly helpful to London buyers where so many people are priced out of the market. There are two different scheme options: a mortgage guarantee and an equity loan. Essentially, this scheme allows you to purchase a property with a lower deposit, meaning you may be able to get onto the property ladder quicker.