Buying a home in London is notoriously expensive. Even taking a staycation in London is notoriously expensive. But it is expensive because the demand is there, driving up prices in everything, including homes. If you are looking at settling down in London, you should look at this guide that will help you keep the costs down at least a little.
Go to auctions
With such a diverse population of people going in and out of London, there is bound to be some empty homes that need to go on the market quickly, for any number of reasons. Chances are these homes have been repossessed by the bank, indicating the previous owners couldn’t afford them, in turn indicating a nice home.
This makes auctions a breeding ground for bargains. Get a catalogue and go to some viewings to make sure you know what you’re buying however because once that hammer comes down you are legally obligated to buy the property.
If you’re worried about having to make a hasty transition, with all the chaos around you, you can make things easier by looking into self-storage in London. You can store all your furniture and belongings away while you look for and buy your property.
Buy just outside London
Central London is one of, if not the most, expensive places to live in the UK. The need to get into the central hub of the country is obvious, and the appeal of a shorter commute is even more so. But as appeal rises, so do property prices. What is being seen, therefore, is that areas just outside of London are becoming popular too.
Two areas of London that have seen a vast amount of growth lately are Hammersmith and Fulham on the west end of London, but there is also Wembley, which offers superior transport links even though it is outside Zone 4. It is a quick train ride to Heathrow Airport and is close to the M25 and M1.
Look for future projects around the area
Infrastructure and development plans in the area could affect the house prices in the area. Heathrow Airport has a planned expansion, for example, that has contributed to reducing house prices in Windsor and Maidenhead by around 6%.
Take a look at planning permissions to find out if there is anything in the area that will lower the value of your potential home and take advantage of the change.
Up your mortgage borrowing power
There are a few things you can do to convince your lender that you are good for a bigger mortgage – the most obvious being to wipe your debt. A lender is going to look at your debt-to-income or DTI to determine how much you are obligated to put towards your debt per month before you pay anything else. Paying it all off in one go or getting an instalment loan will make this easier.
Make sure to show proof of any extra income you have. Lenders will accept a range of income sources that you probably hadn’t even considered, such as pension income, investment dividends and government benefits like Disability Living Allowance. You can also add any freelance or self-employed income as long as you show proof of earnings from the past two or three years.
You can also split the costs with a joint mortgage. Typically taken out by couples, joint mortgage owners can also be unmarried couples, civil partners, friends, family members or business partners. However, it should be enforced that this is a contract that has to be fulfilled, not just a name on a house. They will be responsible for the property and split the finances to keep it.