Mortgages – How To Get On The Ladder
Now I have been in the market for a mortgage for a few years now. I have been working hard to get my foot upon that elusive first rung of the housing ladder. My income has increased greater than the rate of inflation, which should be a good thing, but nevertheless the bottom rung, and that is all I want to get to at the moment, is just out of reach.
House prices, of course, have been rising without a care in the world for other factors such as average incomes or inflation. Average character values are now several times average incomes, and when I say several times I average a associate of times more than lenders are usually willing to lend.
With all the talk of late about the crash of the US subprime mortgage sector due to bad credit losses I was buoyed temporarily at the though of a house price crash – Could house prices in the UK suddenly plummet so I could go to the bank and borrow 3 times my salary and buy a nice three bedroom house? Sadly it appears not. Any drop in house prices may well rule to interest rate hikes which would make repayments on already these lesser figures as prohibitive as at present. At the same time mortgage lenders are doubtful to take such flamboyant punts in lending potentially unaffordable amounts to prospective borrowers.
So, what is the best way forward for me? I have considered trying for a buy to let mortgage, like buying a small, very small flat and renting it out – at the minimum I would be on rung one? But, financial matters are conspiring against me, and the millions in my situation, what if house prices drop really? Then what a surprise that would be to truly, after years of strive to climb aboard the character gravy aim I ended up with negative equity on a character I could not already live in.
The best way forward when faced with such uncertainty is to speak to an expert such as at ClickngoMortgages who specialise in First Time Buyers Mortgages and Buy to Let Mortgages