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Getting on the Property Ladder



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span                            that this could take years, and   
class="cap">As most     many may not want to keep         
people know the mortgage        throwing their hard earned cash   
market is in something of a mess      on renting someone else’s         
at present, and funding has all       property for so long.

         
but dried up for lenders, who         

One option for those wanting   
have found it more expensive and      to get onto the property ladder   
difficult to secure funding for       is shared ownership schemes, and  
their mortgage lending                these are offered in conjunction  
operations. This has made it more     with housing associations. The    
difficult for first time buyers       buyer can purchase a certain      
to get onto the property ladder,      percentage of the property, such  
as many cannot raise enough cash      as 25%, 50%, or 75%, with shared  
– or deposit – to purchase a home     ownership. The buyer then rents   
on the market in the normal way.      the remaining share of the        
There are a number of options         property. This means that you     
open for those that are looking       will need to take out a far       
to get onto the property ladder,      smaller mortgage and will need a  
and whilst the choice is not as       far smaller deposit, as you are   
great as it once was due to lack      only taking out a mortgage for a  
of affordability there are still      share of the property. You can    
some solutions that could help        then buy further shares in the    
those desperate to get onto the       property as and when it is        
property ladder to achieve their      affordable, and can continue to   
dreams. Of course, one option is      do so until the property is fully 
to simply wait it out and see         owned. Alternatively you can      
whether things are any better         choose just stick with the        
once the mortgage market              original share that you bought,   
rectifies itself, but some            and then sell on your share if    
industry officials are predicting     and when you decide you want to   



move on.

                          Also, remember that the interest  

There is also the recently         rates on many mortgage products   
launched HomeBuy scheme, which is     have been rising, so make sure    
a government initiative to try        that you can comfortably afford   
and get people into affordable        the repayments before you make    
housing. With this scheme you can     any                               
get an equity loan from the           commitment.

government of up to 32.5% and         gend>About the                 
this can be repaid as normal or       Author
paid off when you sell the            id="authorbio"                    
property. No interest is charged      class="membersnoticewhite">Peter  
on the loan for at least the          Kenny has been writing financial  
first five years. This scheme         articles for 10 years and is a    
could help more people to get         writer for The Thrifty Scot,      
onto the property ladder at a         please visit us at time when the housing and             href="http://www.thriftyscot.co.u 
mortgage sectors are experiencing     k/Loans/Secured_Loans.html">Homeo 
difficulties.

                     wner Loan and

If you do decide to go for a       href="http://www.thriftyscot.co.u 
mortgage then you should bear in      k/remortgages/">Remortgage    
mind that lenders have really         Visit tightened up on credit                href="http://www.thriftyscot.co.u 
conditions, and this means that       k/092008/what-to-look-for-in-a-sa 
you may find it difficult to get      vings-account.html">What to look  
the mortgage you need. Many now       for in a savings                  
want higher deposits than the         account

traditional 5%, so you may have       >
                            
to pay more upfront as well.          




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