How to find financial help when buying a property
The property market in Plymouth has been in rude health of late. Figures from the Office of National Statistics showed that 2018 saw around a 3% rise for property value in the city.
This is part of a vibrant bigger picture for the South West which saw property prices rise by over 4% on average last year. With many thinking that this trend will continue in 2019, it is a great time to be buying property in Plymouth.
Of course, if you are a private individual buying a house to live in, you might need some help with the financial side of it all. If you are new to the property market, you may wonder where to turn to for this kind of assistance.
Luckily, as we will see below, there are some great places to go to for help when buying or building a property in Plymouth.
Need help buying your property?
If you are looking to purchase a new home or have found the perfect investment opportunity to develop a property, then having or borrowing the cash to complete the deal could be a sticking point. Here are some of the best places to turn to for help if you find yourself in this situation.
• Specialist P2P lending platforms – you will no doubt have already come across peer to
peer lending in terms of investing money. It might surprise you to know that there are also specialist P2P platforms that can help you access the cash you need when buying a property.
Lendy is a platform to use for this as it is safe, secure and quick to supply the financial help you need. The loans are secured against the property you buy and there are a range of loan types to take out depending on your needs. Developers for example can take advantage of the bridging loans it offers to build up their portfolio while standard buyers can take out a light refurbishment loan to help with any redecoration work needed for the house they buy.
• Mortgage from bank – another type of loan that you could apply for is a mortgage from a bank or building society. If granted you would be required to repay the loan amount over the agreed period with interest. Such institutions offer a range of mortgages from straightforward ones to purchase a property to more specialist types like Buy-to-Let. The key thing is to put down as much as possible for a deposit to enable you to borrow more and also to bring the monthly repayments down. The greater the deposit you can put down the better the deal will be (lower or fixed rate interest) that you are offered by the lender. You should also bear in mind that this sort of loan is usually for a far longer period (often 25 – 30 years) than a P2P loan and can be harder to get in some cases.
• Auction finance – some people head to their nearest property auction to buy a new home. While this is a viable choice and can land you a real bargain, you may find the 28-day payment deadline most auction houses enforce a little tight. If that is the case, you could find a specialist company online that deals in auction finance. These companies can loan you the money you need to pay the auction house on-time and complete the purchase.
• Family or friends – if you want to keep things more straightforward, why not consider asking your family or friends for help? This is probably only going to be feasible if you need a fairly small amount for the required deposit to secure a mortgage.
• Crowdfunding – one innovative way to get help with financing a property purchase is crowdfunding. Different to the other lending options we have looked at, sites like Indiegogo connect you with investors online who will collectively put the money up you need. In return, they would usually be line for some kind of gift or return on the sale of an investment property for example. This can be a quick and fairly easy way to find investors with money to put into your purchase. Crowdfunding is not recommended for first-time buyers.
Many ways to get the help you need
As the above shows, there are quite a few ways to get help with buying property in Plymouth. If you have decided to make the city your new home or are embarking on a property development career in the South West, one of the tips above might help. From P2P lending to mortgages and crowdfunding, you just need to pick the one that works best for you.