Finance Your Dream Home

When you apply for a mortgage, lenders look at a number of things to work out how much you can borrow including your earnings, outgoings and credit history.

We will help you do the sums by completing a budget planner, so you will need to give us as much detail as you can about your finances.

If your savings are limited or your income is not sufficient to obtain the level of mortgage that you require, there are other options open to you:

1. Buy with friends or family

Why not join forces with someone close to you? It would help relieve the financial burden and you should be able to afford a larger property or a better location. We do recommend you seek legal advice before entering into a formal agreement with someone.

2. Shared ownership

Housing associations operate shared ownership schemes where the association owns part of the property, and you take a mortgage on the rest of it. Shared ownership makes home ownership more affordable. You might buy a 25-75% share in your home. The bigger share that you purchase, the less rent you will have to pay. When you can afford to do so, you can buy more shares until you own your own home outright, in a process known as 'staircasing'. 

For more information, visit the DirectGov site.

3. Government schemes

There are a number of schemes available to help people get onto the property ladder including low cost home ownership and cash incentive schemes. However, these are often available in limited areas and to certain professionals such as key workers like nurses, teachers and social tenants - however the government has launched a number of schemes aimed at first time buyers.

For more information, visit the DirectGov site.

4. Guarantor mortgages

If your salary is not large enough to cover the mortgage you need, someone close to you can act as a guarantor until your earnings are sufficient to cover the mortgage.

This could be a parent, a close relative or long-standing friend. Your guarantor does not have to part with any money unless you fail to make your repayments. If this happens, they are liable to cover the repayments for you.

It should be noted that your guarantor could be at a risk of losing their home if you and they are unable to pay the monthly repayments, so you should be confident that you can afford the payments before you proceed).

If your lender uses income multiples to work out borrowing limits, you can also benefit from your guarantor's borrowing power.

By combining your income with your guarantor's income, you can increase the size of mortgage available to you. So, with a little boost from your guarantor, you could finally be able to get onto the property ladder.

If you would like any further information, contact our expert mortgage advisers today.