We know the past year has been a challenging one, and it has left many people wondering if they will ever own property. However, the lockdown period has reinforced the need for space, and recent studies indicate many people have serious dreams about owning property one day.
If you would like to discuss your property plans or ambitions, contact Williams of Petersfield. We are here to assist you as best we can, and we look froward to helping you achieve your property dreams.
What is your property dream?
Research from Aldermore has revealed that almost half of the UK’s renters have not given up on their dream of being a homeowner.
Aldermore spoke with 2,000 private tenants in the UK, and 45% say “owning a home is a life goal”, and 26% are actively saving for a deposit.
The areas which saw the most significant level of intent from renters to buy were:
- Northern Ireland
- Greater London
- South East of England
There are challenges to overcome
Some of the biggest challenges cited by prospective buyers were:
- 38% of respondents said they were actively looking to upgrade their credit score
- 30% of respondents were concerned about raising a deposit
- 28% of private tenants cited their credit history as a concern
- 17% of respondents cited affordable house prices
- 13% said high rental costs was a concern
- 8% of respondents said securing a mortgage was their biggest obstacle
Credit issues cause problems
If you are looking to buy a home, you need to feel confident about your credit score, and what mortgage offer you will likely receive. If you have concerns regarding your credit score, and how it will impact you, you are not alone. We are also happy to advise as best we can.
The main credit issues experienced by respondents include:
- Their overdraft, said by 26% of respondents
- Credit card debt, said by 25% of respondents
- Employment gaps, said by 21% of respondents
- Being responsible for dependents was cited by 17% of respondents
- Missed bill payments was listed by 15% of respondents
- 8% of respondents save said their account has been handled by collection agencies
- 7% have said they have taken out a payday loan
- 5% have a CCJ (County court Judgment) in their past
Of course, there have also been challenges presented by the pandemic:
- 22% of tenants have been placed on furlough or lost employment
- 12% of tenants have admitted to missing or making a late rental payment
- 14% of tenants say they have had to use their savings to get by
Jon Cooper is the head of mortgage distribution at Aldermore, and he said: “The experience of lockdown has focused renters’ minds to work towards owning a home more than ever before, but it is clear from the data that renters see credit issues in their past as a problem for them. And with many dealing with furlough and reduced incomes recently, it is understandable they may feel the dream of homeownership is far from reach. However, the challenges they face are not as large a barrier to buying a home as it may have been in the past. Specialist lenders, like Aldermore, consider borrowers with credit issues, including debt and CCJs, alongside those experiencing furlough, so options are open as we begin the new year for renters that previously may have been turned away from high street lenders.”
At Williams of Petersfield, we aim to support the Petersfield community as much as we can, and we know this is an extremely trying time. A lot of people are looking for support and guidance, and if you have any property or housing related questions, we are more than happy to assist you, so contact us today.