Mortgages and Properties for families in London
London is the world’s most expensive City for homeowners so how can families find affordable mortgages in London? If you’re interested in moving to London you should set your sights further afield. While the centre of London is financially out of reach for many, if you look for mortgages in the surrounding boroughs such as Bexley, Newham, Hounslow and Greenwich you will find the bill a lot easier to afford. Barking and Dagenham is one of the cheapest boroughs to live in, with an average sale price at only just over £270,000 a property.
Areas on the outskirts have several advantages. They don’t require £50,000 deposits for mortgages, in many instances. Housing estates aren’t growing as fast. As the demand for housing in these areas is less than in Central London, housing prices are more reasonable. Often, properties are close to rail links to London making it easy for parents to commute to work. Suburban locations are also nearer the countryside which is usually more attractive for families with small children.
Affordable Properties for Families in London
If you do want to live right on London’s doorstep without paying millionaire prices, another tactic you could try is to look for less popular areas that are near to the famous, hotspot areas that everyone wants to live in. For instance, there are parts of Battersea that are far cheaper than the iconic London Bridge area.
Other Ways to Obtain a Home in London
Buy Your Social Housing
If you currently rent social housing within London, you’ve done so for at least three years, you don’t have any other properties and you don’t have any debts you may be eligible to buy your property from your local council as a cheaper way of getting on the housing ladder. There is more information on the Right to Buy website.
Lump Your Savings Together
Another option, if you are married or in a long-term relationship, is to join your savings together to double the amount you have to put into a mortgage and this should enable a wider choice of properties. If you’re taking the plunge and moving into together to expand your family and you are already homeowners, you could sell your individual homes to raise income for a new home in London.
Invest in London with a Buy-to-Let Scheme
Buy to let is another way to increase your income and obtain your dream family home in the capital City. Studios for young professionals are becoming increasingly popular and by purchasing an old building and transforming it into several studios you can gain rent from several tenants to enable you to buy the London home you want. You would have to invest money into renovation and would have certain legal responsibilities towards your tenants, such as making sure that gas safety checks are carried out and repair work to the building. Special buy-to-let mortgage deals are available to help you gain maximum profit for a reasonable outlay. Before taking out a mortgage, always shop around for the best deal. Rates can vary. You can find useful information online.
The Cheapest Place to Rent
If you’re not eligible for a mortgage right now or you don’t know if London is for you – you could try it out first by renting a home instead. Although rental prices are often more expensive than taking out a mortgage, there are less criteria to obtain a rental home, you can move more easily and the landlord is responsible for major repair works. Bexley is currently the cheapest place to rent in the London area, with rents averaging at £919 a month.