If you are self-employed, have bad debt or already in some debt, then you may think that you’ll never be able to get onto the property ladder. After all, who will want to lend money to someone that hasn’t always make repayments in the past? But the key thing is to never say never. Owning your own home could be more of a realistic dream than you might think. So read on to find a scenario that helps to fit your individual situation, so that you can make some changes and be prepared to be a homeowner.
I Don’t Earn a Six-Figure Salary
There is no getting away from the fact that some parts of the country are going to cost more than others. Even some parts of different states will cost more than others. Which is where something like shared ownership might be the best option for you. It is mainly a subsidies option that often is relevant to new property developments. But if you are in an affluent area and don’t have a salary to match, then it could be for you. So look into any schemes that are operating in your state or local area.
I’m Self-Employed and Don’t Get a Regular Income
Not everyone in the world works in a regular nine-to-five kind of job. There are many people that are self-employed and don’t get the regular payment from an employer in their bank each month. So understandably, this brings with it some questions. But as long as you can prove the income that you do earn, then you should still be able to get a mortgage. So keep invoices, bills, and receipts. This article could be helpful if you’re in this situation: totallymoney.com/guides/self-employed-mortgages/. Show that you’re sensible with your money and you’re much more likely to be able to get approved for a mortgage.
I’ve Got a Lot of Debt
If you have maxed out credit cards and find that you are living paycheck to paycheck, then t might feel that you’ll never be able to get on the property ladder. The first step would be to get your debt under control; you wouldn’t want more debt from a mortgage when you can’t control what you already have. So look at the best ways to do that, whether that be through consolidating your loans with the help of a site like consolidate.loan or by stepping up the amount that you repay each month.From there, you are going to look much more attractive to a bank when it comes to applying for a mortgage.
I Don’t Have a Deposit
Having a deposit can be a good way for a bank to take you seriously. They see you are committed, can manage money, and gives them some collateral, so to speak. But renting and trying to save for a mortgage can be a bit of a catch-22 situation. So you could look out for help to buy style schemes in your local area. You could also get a 100% mortgage loan. This may result in higher interest rates as the risk is higher, but it means you’re on the property ladder and not renting.
*This post was contributed. Family friendly post are welcome.