Homeownership: Renting versus owning, and available Mortgage solutions!
Homeownership refers to those people that own their own home as opposed to renting the accommodation they live in.
"Starting to feel there's a light at the end of the tunnel, thank you"
Mr G., Oakwood, Derby
This page takes a look at Homeownership and how it compares to renting, along with the advantages and disadvantages of homeownership. If you're looking to buy a home and get on the property ladder we also provide information and details as to how we may be able to assist, even if you have suffered credit difficulties.
Table of Contents:
What is Homeownership?
So, quite simply, Homeownership is the name given to the term that encompasses those people who own their own home.
Of all the European countries, the United Kingdom has the greatest proportion of homeownership compared with those who rent their accommodation.
Benefits of Homeownership
So, what are the benefits of homeownership? Well, owning your own home has many benefits over renting, and these include:
- Independence: within reason, you can do as you wish with your property
- Asset-building: the increase in value over the years is your collateral
- Real-term reduction in expense: over time the cost of mortgage repayments will in real terms diminish, and eventually stop once your mortgage is repaid
- Inheritance: home-ownership will provide an asset to leave to your family
- Springboard to move up the property ladder: it's practice for homeowners to commence their property ownership on the first rung of the ladder, for example; an apartment, studio flat, maisonette or a terraced house. Homeowners will build up equity and use it to fund a property purchase of a higher grade, such as a semi-detached, or detached property; or maybe make a move to a more salubrious area, and so on.
Disadvantages of Homeownership?
Being the owner of your own home also has it's drawbacks, for example.
- Expense: you are responsible for the maintenance of your property
- Mortgage Payment Increases: your monthly payments could increase substantially in the event that interest rates increase, whereas those renting have fixed rent payments until the next rent review takes place
- Mobility and Costs : if there is a necessity to move areas, the sale of your property could take several months, which may mean that you have the upkeep of two homes for a period of time. Similarly, you will have the cost of sale and purchase,which could run into tens of thousands of pounds when you include Stamp Duty, solicitors' costs, estate agent and broker fees.
I'm very interested in buying a home, but I'm not sure if I would get a mortgage, can Shire Direct help me?
Well, we'll certainly try, that's for sure!
We're geared to accommodate most circumstances. Lots of people have found that the door to homeownership is closed because they can't get mortgage funding, which is often as a result of experiencing credit difficulties, such as a credit default, or a County Court Judgement (CCJ).
It's worth giving one of our professionally qualified mortgage advisors a call to see how we can help. They'll be more than happy to discuss the options open to you, and we will of course carefully assess your circumstances, needs, requirements and aspirations and come up with the most appropriate solution for you!
Advice and service always come first at Shire Direct, and we think you will find our service to be both friendly and helpful. So, please don't hesitate to contact us if you would like to discuss your requirements and the options available to you, naturally without any obligation! Our mortgage experts are available on Freephone 08000 282 281 up to 10.00pm everyday, or you can enquire online at any time, and we'll be delighted to provide you with an in-principle decision, whatever your circumstances!
Hopefully that has managed to answer any initial questions you may have had regarding homeownership and filled you in on owning versus renting your home, maybe you are even feeling enlightened, we'd like to think so! Why not take a few minutes out to explore some of the other possibilities that may be open to you by perusing the rest of our site, and if you do feel our services can be of assistance, then please do get in touch, we'd love to hear from you!
The overall cost for comparison is 9.8% APR.
The actual rate available will depend upon your circumstances. Ask for a personalised illustration. APR variable and based on a usual case. Most customers are likely to receive a lower rate or the same rate as our overall cost for comparison rate - learn more about APR.
There are no upfront broker fees.
However, a fee may be charged on successful completion. An indication is that on conforming cases (straightforward applications with no or minimal adverse credit) a fee may be charged of up to 1% of the amount advanced, typically £795 and will depend on your circumstances.
For non-conforming cases (where case research and processing may be more complex due to adverse credit or unusual circumstances), a fee may be charged of up to 3% of the amount advanced, typically £1,995.
THINK CAREFULLY BEFORE
SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED
IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Adding existing debt to your mortgage will increase the repayment term and overall cost.
Are you worried and becoming stressed because you are having problems getting a mortgage or remortgage? Worry and stress no more! Here at Shire Direct we provide tailor made mortgage solutions to suit you, and can usually help with all kinds of circumstances including...
Remember, we're here to help, and would love to hear from you!
Shire Direct and Shire Direct Mortgages are trading styles of Shire Processing Centre Limited which is
Authorised and regulated by the Financial Services Authority in respect of regulated mortgage products and general insurances.
Registered No: 302389. Commercial funding and Secured Loans are not regulated by the FSA.
Licensed Credit Brokers. Consumer Credit Licence Number: 349999.
Shire Processing Centre Limited is registered under the provisions of the Data Protection Act by the Information Commissioners Office: Registration No: Z6795249. Registered in England & Wales. Company number: 2732202. Telephone calls may be recorded for training, monitoring and security purposes. All applicants must be aged 18-years or over.