Sometimes a family will outgrow the home in which they live. It is not an unusual situation in which to find yourself because most people have to climb the housing ladder slowly. When it is time to step up to the next rung, you might wonder how to fund the move.
Maybe you live in rented accommodation and want to sink your money into bricks and mortar to leave something behind for your children when you are no longer here. Whatever the reason, you will need to raise a deposit for a new mortgage. It is not easy to get a mortgage since the financial crash of 2009. You must meet all of the criteria set down by the government and the lenders.
If you act now, you can take advantage of the Help To Buy scheme that is in place to help people who struggle to raise the cash they need. Banks ask for twenty percent deposit on most mortgages to ensure that there is equity in the property should they ever repossess it. That is an enormous sum of money. It equates to forty thousand pounds on a two hundred thousand pound property. Under the plan, you only need to find five percent and the country pays the rest. You have a five-year break before making payments on that money. It is such a good idea that it is in no small way responsible for the current housing bubble. Contact Scotland’s leading mortgage brokers, First Mortgage before it is too late. I will not be surprised if the government cancels the system soon.
How will you raise the much needed cash for your deposit? Here are a few ideas for you.
You could take on a second job. Even if you feel exhausted at the end of a long day you could go home, take a shower, have something to eat, and head off to the supermarket to stock the shelves. It isn’t ideal, but don’t think of it as a permanent situation. As soon as you have enough money you can quit the extra job.
Open A Vintage Shop Online
Sell used items online under the guise of vintage collectables. The high streets are full of shops selling ‘retro’ gear, so why not get your slice of the pie? Register with an online auction site and invest in a camera. The secret to selling online is to take fantastic pictures and use creative descriptions. Visit car boot sales, to find suitable material for your online shop. Some people will buy anything.
Do you own an expensive car, caravan, holiday home, or anything else that could raise some ready cash? Your home must come first, so sell those luxuries for the greater good. In a few years, when you have some extra money, you can start surrounding yourself with them again.
Don’t fall into the trap of thinking you can put the money on your credit card, or take a second loan. You financial state will come under much scrutiny when you apply for a mortgage, and those repayments might mean that you do not have enough money left to buy a house. Maybe your parents could lend you the deposit, but make sure they say it is a gift.
It is hard to qualify for a mortgage, and it is set to become even harder as the qualification rules change to calm the booming housing market. Many people succeed though, so don’t give up at the first try. You will get there one day.