Home ownership

Thinking about buying a new home

As a minimum you will need to have at least 5% of the price of a house as a deposit. Lenders will then want to be happy that you have the income to pay back any money you borrow. For ways to actively save money, take a look at nudge, our free money management tool.

As an initial step you should talk to an independent financial advisor or mortgage broker who will be able to explain how much money you could borrow and the possibilities for paying it.

In the past few years there have been several schemes which give you the possibility to purchase a share of a new home, usually 25 – 75% and pay rent on the remaining share to the landlord, usually a Housing Association. 

The schemes are usually called shared ownership properties, they provide the possibility for those that do not currently own a home the opportunity to purchase a share in a new build or resales property. It means that you need to have a smaller deposit, need to borrow less, and have the option to buy further shares in the property until you own it outright. In some rural areas you may only be able to purchase a maximum of 80% of the property.

Before deciding to buy a new home, you should carefully consider the responsibility this brings. Unlike a rented home you shall be responsible for all the repairs and maintenance and all bills. If you part buy a home, you will need to think about how much your mortgage and rent will add up to and any other charges or contribution.

The Government provides a How to buy a home guide, which provides homeowners and prospective homeowners with a helpful overview of the process of buying a home.

Dealing with mortgage arrears

We understand how quickly you can fall behind with mortgage payments and slip into arrears. We also know that there are many reasons why this can happen. Most people know that their mortgage is a top priority and should be paid before any other financial commitments. However, we understand that there are lots of reasons why you could find yourself in financial difficulty and not know where to turn.

If you are struggling to pay your mortgage and have possibly fallen into arrears, then you are not alone. Even if you have received a letter about court action it is not too late to get advice and there may be options to stay in your home that you have not considered. Don’t be tempted to just borrow money or consider an option like bankruptcy to deal with any mortgage arrears as this may make things worse.

First steps:

  • Talk to your lender, they shall make reasonable attempts to come to an arrangement with you.
  • Check if you have Insurance that shall cover your mortgage such as Mortgage Payment Protection, Accident, Unemployment or Sickness Insurance.
  • Look at your budget, can you cut down on any non-essential costs to save money. Use nudge our free money management tool to help.
  • The Perennial Debt Team are here to help you find a solution.

You may have other debts that you are trying to pay instead of your rent or mortgage, and we can help you look at the options for managing those better too.

Ignoring mortgage arrears and not seeking assistance can have serious consequences like your home being repossessed and you being evicted. You may then find it difficult to get further accommodation. This rarely happens if you get the right advice so get in touch and talk to us. Call our Helpline on 0800 093 8543 and make an appointment with one our specialist Debt Advisers. All advice is free and fully confidential, impartial, and non judgemental.

Perennial’s Debt Advice Service is authorised and regulated by the Financial Conduct Authority.

If you have not worked in the horticultural industry contact a specialist debt counselling service that can provide free impartial advice from a trained money adviser, check your local Citizens Advice Bureau or National Debtline.