| As the housing market continues to boom, first | | | | money over the long term. A 2005 survey by |
| time buyers are asking themselves if they can | | | | Abbey showed that on average a home owner |
| afford a place to call their own. In the south-west | | | | will pay £37,650 less over twenty-five years |
| of England, particularly, it can feel like you could | | | | than renters. |
| pay tens of thousands of pounds and still only | | | | So, if you decide to take the plunge and look |
| afford a shoe box. | | | | around for a place to buy, how on earth do you |
| Many people are now looking to buy in up and | | | | go about it? There are hundreds of companies |
| coming areas, possibly a touch run down, but with | | | | selling many types of mortgages: capped rate, |
| 'potential'. They cross their fingers and hope that | | | | buy to let, variable rate, and tracker mortgages |
| these cheaper houses or flats might appreciate in | | | | are just a few of the options available. |
| value in years to come. In recent years, the trend | | | | Financial books can be helpful, as can Internet |
| in house prices has been upwards, but a recent | | | | sites that help you find and compare mortgages, |
| tremble in the financial markets has once again | | | | but don't forget that the old fashioned approach |
| had people talking of a 'realignment'. | | | | of going into your local bank can work just as |
| However, the other option of course is renting, | | | | well. After all, staff know the difference between |
| good if you are moving around frequently, but not | | | | the many mortgage types which can swiftly give |
| so attractive if you like staying in one place and | | | | the non-specialist a large headache. |
| putting posters up with blue-tack. The total | | | | Each mortgage seller must also provide you with |
| amount of local housing stock has also declined | | | | a Key Facts Illustration (KFI) to make it that little |
| substantially since the 1980s, and most private | | | | bit easier to compare and contrast different |
| tenancy agreements are Assured Shorthold | | | | mortgages, and to understand what features are |
| Tenancies, more favourable to the landlord than | | | | being offered. |
| the old Assured Tenancy. | | | | So, if you're keen to have a home of your own, |
| The other issue in the buying versus renting | | | | a place that satisfies all those clichés about |
| debate is the old 'money down the drain' | | | | 'home is where the heart is', head down to your |
| argument. As challenging as home-owning may be, | | | | local mortgage seller and keep your eyes peeled |
| at least it means that you can pat your bricks | | | | for the property of your dreams. The whole |
| and mortar and think, 'this is mine'. In clear financial | | | | process might be easier than you think. |
| terms, home-owning is also better value for | | | | |