How To Traverse The Unexpectedly Bumpy Road To Home Ownership

 How To Traverse The Unexpectedly Bumpy Road To Home Ownership

Prices are always rising, and wages aren’t keeping up. One look at the news is enough to have us quaking in our boots. How are future generations supposed to live in a world where homeownership is no longer an option? Millennials are increasingly cost conscious, and none of us can blame them. Not since after the war has the future seemed so uncertain for a generation. 

As much as you may sympathise with the struggle, financial comfort removes you from the problem, right? It may break your heart that future generations can’t buy homes, but what’s to stop you? You have money in the bank, and your heart set on the house of your dreams. In truth, though, the path may to homeownership may be bumpy for you, too. High-bracket individuals struggle to get mortgages for a variety of reasons. Here are a few worth considering. Are you an unreliable asset? Unreliable assets are a nightmare for many mortgage brokers. If they’re lending you money, they want to know you’ll pay it back. If you’re unreliable, how can they be sure? Few of us would argue with that logic. But, there’s a small chance you’re unreliable without realising.

Recent changes in government policy mean criteria for affordability has become more stringent, especially in high-end loans. As such, that financial security you thought you had may hinder you. So, what makes you unreliable? The primary and most obvious example is if you’re self-employed. If you’re earning steady and large sums of money, it shouldn’t be an issue, right? Think again. The changes have made companies a lot less willing to take risks. You may know you earn a steady amount, but that won’t be enough to see you through.

Equally, being past a certain age can make you unreliable. Sorry to be morbid, but the reason is as simple as the company not knowing you’ll stick around to repay. The good news is, there are options if you’re in these categories. Companies like Enness work hard to ensure people considered ‘unreliable’ by other brokers get the homes they deserve. So, you don’t have to traverse these waters alone.

Money in the bank doesn’t mean much

You may also struggle to get a mortgage if you’re relying on savings, rather than income. Money in the bank doesn’t mean as much as you might think. The fact you have savings now doesn’t make you a viable option down the line. If you’re in this position, your best bet is to find a guarantor who can vouch for you. Bad credit is bad credit

If you have bad credit, you’ll struggle to get a mortgage from anyone. Irrelevant of earnings, bad credit is bad news. The best way to avoid this issue is to always keep up with payments. If you do find yourself with bad credit, do anything you can to improve the situation. Your best option may be to get a small loan, and make sure you keep on top of payments!