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How to Get on the Property Ladder

Posted On Tuesday, 31 May 2022 10:13
How to Get on the Property Ladder

There’s no doubt that it’s getting harder and harder to get a foot on the property ladder, with the average home in the UK peaking at a record high of £274,000 in January 2022.

This is £24,000 higher than during the same time last year, with English house prices increasing to an average of £292,000 and rising by 9.4% over a 12-month period.

While it may be hard to buy your first home, however, it’s by no means impossible. So, here are a few steps to help you on your way!

#1. Pay Down Your Outstanding Debt

When you have excessive levels of debt, it can be hard to save and accumulate the type of deposit that can minimise your future mortgage commitments.

If you’re struggling to repay your debt, you may also create increased pressure on your credit score, making you a far greater borrowing risk in the eyes of potential lenders.

So, appraising the total value of your debt and paying down as much of this as possible can be highly beneficial, both in terms of creating a viable financial plan and creating a history of positive credit transactions.

#2. Boost and Demonstrate Your Earnings

Your earnings are also a key consideration in the eyes of mortgage lenders, who want to put forward an offer that’s manageable and repayable over an extended period of time.

So, you’ll ideally boast secure job status and clearly defined earnings, which can be presented to lenders and are visible through payslips or bank statements.

You should have been in employment for a minimum of three months and have exited any probation period, as this minimises the lender’s risk and increases your chances of being accepted for a mortgage.

Where possible, you may also look to create additional earnings through freelancing, as this may enable you to borrow more and further offset the lender’s risk.

#3. Consider Help-to-Buy Schemes

Even with regular employment and clean credit history, there may be times when you need a little help to secure your first home. 

Fortunately, the government continues to operate schemes that incentivise and empower first-time buyers, while most new build developments offer help to buy schemes that make purchasing property easier and more affordable.

Such schemes may contribute towards your deposit, for example, or minimise the amount of cash that you have to pay down to complete the transaction in the first place.

#4. Don’t Forget the Deposit!

We’ve already touched on the deposit, but saving as much money as possible will help to reduce the size of your mortgage (and subsequent repayments) and increase your chances of being successful.

When it comes to deposits, bigger really is better, and you can improve your circumstances simply by entering into a joint mortgage arrangement where your finances are combined.

Once again, increasing your earning potential is an excellent way of contributing to your deposit fund, while don’t be afraid to seek out help from parents or loved ones who are able to assist.

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