Property

What Are The Different Ways Of Buying A House?

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So you’re looking to buy a house? Honestly you should be proud of yourself, buying your own house is a big achievement.

There are quite a few different ways & Government Schemes you can use to help you buy your new house.

You’ve got options, it’s as simple as that.

Traditional Mortgage

With a traditional mortgage you just have to put down the deposit (lump sum) for the house you would like to buy.

This is usually 20% to 40%, you then take out a loan for the remaining amount, this is called a mortgage.

With a traditional mortgage you usually pay back your loan over 20 to 30 years. This is called the “term” of the loan.

A traditional mortgage only really works for people with a lot of savings or stinking rich family.

Imaging trying to buy a £400,000 house & having to have £80,000 to £160,000 in cash as deposit…it’s mad!

What Are The Best Mortgage Deals?

Halifax 2 Year Fixed
Maximum LTV
60%
Initial Rate
1% fixed for 2 years
Subsequent Rate (SVR)
4% variable
Overall Cost
4% APRC
Lloyds Bank 2 Year Fixed Remortgage
Maximum LTV
60%
Initial Rate
1% fixed for 2 years
Subsequent Rate (SVR)
4% variable
Overall Cost
4% APRC
Barclays 2 Year Fixed
Maximum LTV
60%
Initial Rate
1.9%
Subsequent Rate (SVR)
4.2% variable
Overall Cost
4% APRC

Right to Buy

If you live in a council flat at the moment, the Right to Buy Scheme might just be perfect for you.

It gives people who live in council houses the chance to buy their homes at a big big discount, sometimes up to 70%.

You can apply to buy your council house if:

  • It’s your only, or your main home.
  • It’s self-contained, which means you don’t share any rooms (including kitchen, bathroom and toilet) with people outside your household.
  • You’re a secure tenant, so there is a legal contract between you and the landlord.
  • You’ve had a public sector landlord (eg, a council, housing association or NHS trust) for three years (it doesn’t have to be three years in a row).
  • You have good credit

What Are The Best Right to Buy Mortgages?

Help to Buy

If you want to buy your first home & don’t have super rich parents who can help you find a 20% to 40% deposit, the Help to Buy Scheme is pretty much perfect for you!

It’s a Government scheme that helps you buy your first house with just a 5% deposit. Yep only 5%.

The Government then gives you a loan for up to 20%, (40% in London) of the house price.

You then just need to get a mortgage to cover the rest of the money that you need to buy the house.

The Government literally helps you to buy, it’s all in the name!

What Are The Best Help to Buy Mortgages?

Halifax 2 Year Fixed for First Time Buyers
Maximum LTV
60%
Initial Rate
1.4% fixed until 31 May 2022
Subsequent Rate (SVR)
4.2% variable
Overall Cost
4% APRC

Shared Ownership

So shared ownership is this super-hybrid between buying and renting your new home.

To put it simply. You buy a share of a house, then pay rent on the part you don’t own.

So in essence, you only pay reduced rent & you own part of the house.

If you don’t have enough money to buy your own home, but want to get a foot on the property ladder, Shared Ownership is something to consider.

What Are The Best Shared Ownership Mortgages?

Royal Bank of Scotland 2 Year Fixed
Maximum LTV
70%
Initial Rate
1.2% fixed for 2 years
Subsequent Rate (SVR)
4.2% variable
Overall Cost
3.8% APRC

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