Today is

By: Ikedi Ani-okoye.

Author: Helen Adams

Buying a Home

Somehow it's in our genes to want to own the roof over header. Buying your first home makes sense not Jnly because at some point you will no longer have to pay rent or a mortgage, but also because hopefully you will have made some money too. Although tlK property prices have risen over three times in the last ten years, they are now beginning to level off. Levelling or lowering interest rates are also perhaps creating an opportunity for those wanting to invest.

For budding property orders, the East of London presents a unique opportunity. due to the investment in property, services and infrastructure in preparation for the 2012 Olympics. Property prices are already beginning to show inflation in this pocket as all the promotion and hype gets underway.

So how can you jump on the bandwagon

With mortgage lenders rattled by the subprime' mortgage lending issues in the us market, they are certainly more cautious about who they lend to in the UK - though the lending market in this country is substantially more regulated - and they will be looking to reduce their exposure. To start with, try to gather together as large a deposit as you can. This will make the mortgage slightly lower and cheaper. These days, parents are helping enormously with gifts or loans for deposits.

The high property prices preventing first time buyers from stepping onto the property ladder are exactly the same forces that mean their parents are sitting on a pile of equity in their own homes - equity that can be put to good use to provide independence for their grown up children. If you don't want to gear up for a huge mortgage - even if you can get one - you might also want to consider some sort of co-ownersidp or co-financing option.

Joint Home Buying

Joint ownership is when friends or family buy a property together as tenants in common. Sharing mortgage payments, bills and a deposit can make all the difference - but make sure you have agreements in place to take into account any change in circumstances. These will help protect your investment. Shared ownership is offered by the Government through the Housing Corporation and typically these schemes are aimed at key workers In this instance you co-own a property with a Housing Association.

You have a mortgage for the part you osvn and then you pay them rent for the part you live in and they own. Shared equity is also offered by the Government to those considered to be key workers. Favourable mortgage and loan offers including an 'equity loan' mean you own all the property but need to give up the relative proportion to your lenders when you come to sell. Parents can also help with the mortgage, not necessarily by becoming co-owners, although that is an option, but coborrowers.

Using their salary or pension you can jointly borrow a mortgage, your parents helping wiidtdie mortgage payments but not appearing on the deeds. Parents can also help by acting as guarantors on a range of first time bu uyer mortgages launched to 'get the FTB market going' Whatever your hopes, you mill need to seek mortgage advice. You can contact lenders directly, tied brokers who sell on behalf of a number of lenders or consult an independent broker wish access to all the mortgages on the market.

CONCLUSION

Under strict guidelines they will need to know all about your finances and will, if asked, advise on which mortgages they think suit your situation the best. Buying a first home is a very personal decision - one that you need to think about carefully. It's a big financial undertaking with no set guarantees anymore, and only you can decide when the time is right. On the other hand, you can't beat turning key in your front door and then shutting it behind you knowing that you are now out of the rental trap and on the property ladder.