Buying a property is one of the best long term investments you can make, but jumping on the property ladder is no walk in the park. Home ownership is a big deal especially if you’re considering buying a property in London for the first time and even more so, if you’re thinking of buying a property in London on your own. So, is it possible to buy a house in London on a single salary?
With properties in London costing the single buyer nine times their salary and the average house price in London for the first time buyer, at £351,783, the prospects of buying a property for the single buyer is a difficult matter.
When it comes to viewing properties on the market, you’re allowed to get excited about the prospects of owning a one bedroom luxury apartment or other elegant one bedroom property in England’s capital – and who could blame you? But before you do, remember that the reality of owning a property doesn’t come with a cheap price tag and when you print and sign on the dotted line, you assume all responsibility as a sole property owner.
If you’re thinking of moving house and buying a property without a partnership, be sensible about what you can afford. The decision to buy a property isn’t only about monthly re-payments on a mortgage but also, legal fees and a reasonably large deposit, which, by the way, will bring down your monthly repayments.
However, without the help of a spouse or partner, you’d firstly need to qualify as a single buyer before the banks will lend you the money and if all goes well, the amount that they lend you will be less than if there were a joint income.
Whether you are a male or female looking to buy a property for the first time in London, the challenges are the same; the cost of a home being nine times your salary is the highest ever salary-to-value ratio the UK has ever known, particularly for the potential single buyer.
With the responsibility of a mortgage, comes the need to consider changes in your financial status and how this might affect your monthly repayments. In any case, you’ll need to think about changes in health or losing your job. Essentially, you’d need to think about any change in your circumstance which meant that you were unable to fulfil mortgage repayments.
No home owner wants to hear the word ‘repossession’ but unfortunately, circumstantial changes means that this is the reality for some people.
Safeguard yourself and prepare for ongoing costs, it means that you will be as prepared as you can be. Think about home insurance, maintenance costs and don’t leave out life insurance. Budget wisely when thinking of buying a property in London or consider joining with a trusted relative or friend to take that all important step.