When you’re a child, you don’t really day dream about growing up and paying for someone else’s mortgage. You think about buying your own home and being the owner of your own castle. Unfortunately, that’s not always how it goes. Buying a house includes saving for a deposit, solicitor’s fees, stamp duty, moving expenses and insurance costs. It’s a complicated process and when you just want to fly the nest and get out on your own, it can feel easier to just rent instead.
The problem with this, is once you’re in a rent trap, getting out of it is exceedingly difficult! Unless you have a job that pays well enough to afford both rent and putting money into a savings account, or you have a sizeable inheritance, finding that initial seed money to put into homes for sale feels a little impossible. When most of the housing market ask for a percentage deposit that ends up in the several thousands, so many people are left stuck renting a home instead of owning one. There are ways to get out of the rent trap and buy a home faster, and we’ve listed some of those for you here:
Stay put at home. So, instead of rushing to move out of your parental home as soon as you’re old enough to do so, stay where you are. Negotiate a minimal rent with your parents and start plugging as much money as you can into savings. It may not be the ideal scenario, but it’s a fast way to get yourself in a position to buy your own home.
Go for a help to buy scheme. Where most mortgages for new homes require you to have a fairly large deposit, only the help to buy schemes, you only need 5%. This means a lot less time saving up, less time having to stay at home with your parents and an easier way on the route to ownership. There’s also no interest to pay for the first five years, which is a nice little money saver!
Opting for a shared ownership home instead of one outright is a nice way to get your foot onto the property ladder. Shared ownership is the scheme where you buy a part of a home from the council or housing association and you have a mortgage for your share, and rent the rest. This isn’t the first option for most home buyers, as they would prefer to pay a mortgage on a whole house instead of just part of one. However, it’s a solid way to get into the housing market!
Borrowing from family is usually a last resort for renters, but if you have the chance to borrow what you need to move out from your family and they are willing to help, go for it! Usually a loan from a family member doesn’t come with interest, meaning you can pay them back at a far more affordable rate. It’s not the ideal, but you can easily get the keys to your own house and stop renting this way.