When it comes to buying or owning a property, you’ll find the main problem you face stems from finding property finance. Whether you are a first time home buyer or you are looking to take on a second home, getting access to the five-to-six figures you’ll likely need takes a lot of work. Most people cannot afford to take on two mortgages at once without at least off-setting the cost in some way or another. If you do want to pick up a second property, then it pays to know what kind of property finance you can access.
Different kinds of finance will make sense for various reasons. Let’s take a look at some popular property finance options available to you today.
What property finance options exist in the UK?
- For example, someone buying their first ever property will need to turn to a standard mortgage, most likely. This will obviously come with the caveat that you need a fantastic credit rating: the present financial situation worldwide means most lenders are taking little to no risk with mortgages.
- You could, of course, look into getting bridging loans. These kind of loans act, as the name implies, as a bridge from one property to the next. So, if you wanted to make a fast offer for a dream property, but lack the time to sell your own home first, a bridging loan can provide you with the finances needed until you sell.
- Another population option is to go for a development and refurbishment finance fund. This would allow you to develop and improve a present property site, meaning that you could make a significant increase on property value. While it’s dependent on the improvement being good enough to add to the value, it could effectively pay for the loan over time.
- If you would rather build from scratch, then you could easily look at a self-build finance loan. As the name implies, this is a fund that is used to help make sure you can build a new home from scratch. It’s quite similar to a normal mortgage, with different caveats given there is no actual property on the land at the time of the loan being provided.
What property finance option is best for me?
Whether you find that bridging loans make the most sense for you, or you would rather go down a more traditional route, there’s plenty of options. Of course, given the long-term benefits and implications of buying a new home, it makes sense to really take the time to learn the little tricks of the trade.
By understanding the present housing market situation and working out what loan is going to help you achieve your aims, you’ll find property management far less destructive. It’s a challenging market to get involved with, but the right planning – and the correct investment – can ensure you make an investment that you can be happy with for years to come.