We all have a master plan of how we’d like out life to map out. And it normally looks something like this:
‘Go to school, pass exams, move into higher education, get a good job, meet the love of your life, get a mortgage, get married, have kids, go on two holidays a year, retire and live happily ever after’
However in the current economical climate it is clear that this idealistic future won’t happen for everyone. As taxes are rising, the cost of living has become more expensive and it is becoming more and more difficult to live comfortably in Britain.
The two most popular means of living in a home in Britain are renting a house from a landlord and buying your own house. There is also the possibility of renting a home which is owned by the local council. But because these council schemes work on priority the chances of finding a home via the council are very low meaning unless you fit these criteria it is almost impossible to get a house.
Renting a house privately can be expensive but this can depend where you live. For example, house prices in London will be considerably more than house prices in Manchester.
Over the years mortgages have become a hit and miss topic for most of us as it is getting increasingly harder to get onto the property ladder never mind climb the rungs. Deposit rates have increased over the past five years and as we have fallen into a double dip recession and current predictions say that it is only going to get worse.
Unlike our parents and generations before us we have become ‘Generation Rent’ as most of the population have resided in rented accommodation for most of their lives. Although this is a sad tale to tell, it is becoming increasingly difficult to get a mortgage on a property, even if it is part of our master plan.
The standard deposit for a 2 bedroom house is on average £8,000 and for most people that is a lot of money to save! With extra costs on top of this such as home insurance and council tax, if you step back and think – is it really worth buying? Your answer will most likely be no.
If you can find a good mortgage lender then by all means look into it further, however keep an open mind and research mortgage lenders/providers which suit your needs.
This blog was written by Sammy Green, who needed advice before settling on a mortgage deal. He used www.londonmortgageadvice.co.uk.