Five top tips for young people hoping to get on to the property ladder
Times are hard and it is becoming increasingly difficult for young people – even those with good salaries – to buy a home.
Daniel Copley, consumer expert at Zoopla, says they should not despair, however.
Here he shares his tips for getting on the property ladder:
- Find out what you can afford: Use a mortgage calculator such as the one on Zooplato find out what you could afford based on your income to get a starting point for your search.
- Be area-agnostic: Most people in a recent Zoopla survey said they couldn’t afford to buy a home where they lived or grew up, so the reality for many is that they’ll need to look at alternative locations. Zoopla’s area guidescan help you find out where might be right for you.
- Look at the help available: There are many schemes out there designed to help people get on the ladder. Shared ownership schemes (where you own part of the home and pay rent on the rest) can be a great way to get a foot on the ladder. Meanwhile 95 per cent mortgages, can help make saving the deposit less of a barrier.
- Don’t go it alone: Buying with a friend or a partner is one way to slash costs significantly and pool your salaries together. It may feel risky, but it’s actually very straightforward to get a legal document drawn up to enshrine what your share of the property is.
- Get the right mortgage: Many people will have seen worrying news reports about huge increases in monthly mortgage costs. However, there is a number of options so it’s vital to choose what’s right for you. For example, a fixed mortgage reassures you of what your monthly mortgage payments will be for a set period.
Daniel adds: “There is little doubt that younger people today face far more barriers to getting on the housing ladder than previous generations.
“However, with the right knowledge and understanding of what your options could be, owning a home may be more in reach than some realise.”