Discovering the Best Unconventional Ways to Buy Your New Home

Sep 20

Discovering the Best Unconventional Ways to Buy Your New Home

Buying a home can be daunting for anyone, however, more people than ever before are choosing to buy homes through alternative methods. The traditional paths and resources that have been used for many years are becoming unpopular. Therefore, searching for new methods are becoming the way forward when buying a home.

Mortgages can be a minefield of difficult decisions and figures; therefore, many people choose to stick with what they know. However, if you think out of the box, and search for unconventional methods you will be surprised how straightforward it can be for you. There are several different tool and methods which can assist you when searching for the right mortgage.

The buy to let schemes in the UK have become a secure way to purchase a property without the need for a huge initial financial outlay. There  are several buy to let mortgage calculator tools online, which can help you to decide if this is an option for you in the future. Some banks remain flexible, and want to assist people when purchasing their homes.

If you find that the banks are not willing to help you, there are several unconventional methods, that you may want o research. Learning how to move away from the banks can be a challenge; however, it is not impossible if you research well and understand what is needed. The most popular methods for losing the bank are:

Shared ownership options are one of the riskiest financial decisions to make, however, for some people there is no alternative. You can share the ownership with friends, family, or investors, however, you need to ensure that everything is discussed beforehand, and all parties understand the terms.

Financing through the seller is an option that is considered to be unusual, however, is gaining in popularity. You will seek financial support from the seller rather than the bank, and pay the overall amount to the seller direct. This can take several years; however, there are no costs or interest rates involved making it financially viable.

Assuming the mortgage is something that some people prefer to do, and if your mortgage agreement allows it, it may be an option. You can assume responsibility of all payments and compensate the equity which would have built up on the loan.

Financing through a third party is similar to financing through the seller; however, you will be paying the mortgage to a third party. Choosing someone t o take the role of a bank may be daunting; however, you will be surprised how many people like this option. However, you need to ensure that you can take on the loan repayments, as having to foreclose on a friend or family member will be incredibly hard.

Rents to buy schemes are extremely straightforward and can provide you with the opportunity to own a home without a huge outlay. There will be a contract that outlines payments, terms and the percentage of rent that is used to pay the mortgage.

Security backed mortgages are an idea if you have some form of investment that the lender can use to secure the payments they will receive. The bank or lender will hold the investment until the mortgage is paid in full.