There's no getting around the fact that buying a property is expensive. Even in places where property is cheapest, you can still expect to pay at least tens of thousands. When you first start to research how much you can afford to spend, you might be disappointed by the numbers you're getting. They could seem pretty low, especially if you're certain that you could afford more. After all, you've never missed a rent payment so you know you can be relied on to repay a mortgage. If you're not happy with the initial numbers, you can probably find ways to maximise what you can afford.
By Team Savant
Image: Jenny Löyskä
Explore Your Mortgage Options
There are lots of different mortgage options out there. So many, in fact, that it can get a bit confusing. But it's something that's definitely worth exploring if you want to be sure you can buy a property you really want. There are fixed-term mortgages with different fixed-length periods, variable-rate mortgages, and tracker mortgages. Then there are interest-only mortgages, which can make sense for some individuals with specific borrowing needs. If you find it all a bit overwhelming, speaking to a mortgage broker is the best thing you can do. They can provide the advice you need and give you access to a broader range of deals.
Get Help with Buying
Some people are in the fortunate position of being able to ask others to help them with their property purchase. You might have parents or grandparents who want to give or lend you money to help out. Maybe you even have friends who can help you. If this is an option you're considering, you can find some mortgages are now designed for exactly this. This can enable you to boost your borrowing power while also ensuring that whoever is helping you is protected and benefits at the same time.
Be More Flexible
The ability to be more flexible when you're looking for a property can really help you maximise your buying potential. It might not make a difference to how much you can borrow on a mortgage, but it can matter in terms of what your money can buy you. For example, if you're willing to be more flexible about which area the property is in, you could get more for your money. If you choose a flat over a house, you could even find you get more space for less money. Flexibility in your thinking and what you want can really pay off.
Play the Long Game
There's no need to rush into buying your first property. If you're willing to be patient and wait longer, you could increase your buying power. More time allows you to save a larger deposit and might even give you the opportunity to increase your income. What's more, if you time your purchase right, you might find that you can buy when property prices are lower.
You have multiple ways to increase your property buying potential if you want to make sure you have more options available to you.