How to Fund Your New Property Purchase
There are several funding options available for buying properties. Make sure that you have the right financial product in place when you buy it. brought to you by Propway.co.uk
Funding Options for Buying Properties – How to Fund Your Property Purchase
When people think of house purchase, they instantly think mortgage. And historically would toddle off down to the local building society to see how much they could borrow. 2.3 – 3.5 annual salaries were quite normal, and if this didn’t generate enough buying power to purchase your new property of choice, hard luck. Deposits were a pre-requisite also, and often a hefty percentage of the buying price. Thankfully though, properties were much more affordable years ago and, pre-house price boom the ratio between a house price and annual salary was nowhere near the cavernous void that exists today.
Buying a Property – Mortgage?
A mortgage is the most preferred way to buy a property in the UK, and the process of application is relatively straight forward. The fun and games can come with property valuations and loan to value calculations. These are carried out to ensure that the lender is safe with the amount that they are loaning a property buyer.
The lenders are far more comfortable with a lower loan to value on a property for obvious reasons. If for whatever reason the buyer is unable to make the payments on the mortgage then the liquidation or sale of the property has to cover the outstanding loan plus any charges.
Other Property Purchase Financial Products
There are also many financial products available for professional landlords looking to buy additional properties, as well as potential investors or people that want to buy a property from auction and will need to have proof of funds available at the point of sale, sometimes even at the point of bidding for the property.
Buying a property to use as a personal home or an investment opportunity both require cash. Making the right decisions can either cost or save a lot of money. Our advice is, take your time and consider wisely.