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By Mark Lambie
Buying a house is almost certainly the most expensive purchase
you will ever have to make. Finding or saving the funds to buy
your first home and get your foot on to the property ladder
used to be almost impossible without taking out a mortgage to
lend you the required funds.
Although most people still don’t have access to the amount of
cash you would need to buy a home, alternate options to the
mortgage are starting to be explored. With the increased use
of
the internet to search for your new home, and the increased
involvement of the buyer and seller of the house, direct
communication between the two parties has never been better.
Buyers and sellers are now communicating together to see if
they can reach a compromise for the exchange for the house
which doesn’t always include financial payment. These deals
are
becoming increasingly creative and can accommodate a whole
host
of requirements for either or both parties.
The most widely used alternative to the traditional mortgage
is
that of the seller mortgage. Most buyers, particularly first
time buyers, require a substantial down payment towards the
purchase of their new home. This is usually a percentage of
the
overall price and is 10% as standard. The cost of houses in
the
UK has risen hugely over the past decade and so this can be as
much as £18,000 in some areas of the country for a small two
bedroomed terraced house. Given that many buyers have to rent
their current home, savings are not always easy to come by.
Should they wish to buy a house from someone who has no
outstanding mortgage to pay a seller mortgage agreement is a
possibility.
The seller mortgage involves the original owner remortgaging
the property and then setting up an amortized loan for the new
buyer. This is a complicated loan but has been made much
easier
lately as it can be set up online and does not necessarily
need
an experienced and expensive accountant to work out the
details.
About The Author: Mark Lambie is the founder of
www.loan-source.co.uk a website providing homeowners
with free secured loans quotes.
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