One of the most expensive cities in the world, London is also one of the most desirable and exciting. Situated on a bend in the River Thames, this bustling metropolis is home to just over 8 million people and stretches out for some 32 miles in every direction. If you’re thinking about moving to London, it’s important that you do your research before committing to anything because purchasing property here isn’t like other places. Here are a few things you need to know before buying your first house in London.
Buying a house in London can be an exciting experience but it can also be very daunting if you don’t know what you’re doing.
Easily the most expensive city in the world with regards to housing, London is not a place you should be rushing into especially if you aren’t sure whether or not it is the right place for you. There are a lot of things to consider before buying property here and one of these important pieces of information will be whether or not you have enough money for a deposit.
The deposit for this type of property varies from price-to-price and even between neighborhoods which makes it difficult to pinpoint how much money you need to save in order to purchase your first home. There is no standard size for London deposits so keep this in mind. If you have a large deposit then you are more likely to get a mortgage that is actually worth taking out but if you want to buy somewhere smaller then it will be harder to get enough money together to do so.
Mortgages in London are completely different than they are in other parts of the UK and, in fact, the world. If you want to purchase something here then your finances are going to be scrutinized much more thoroughly than anywhere else and it won’t matter how much money you have earned within the past year or how high your credit score is – if your bank thinks you have made some bad financial decisions then they won’t give out a mortgage for any amount of money. If you are unsure about your financial history then it is probably best to stay away from the capital city until you have some more information.
If you are looking at buying in the outskirts then there is a slightly different picture. If you have a large deposit then you will definitely be eligible for a mortgage but it will still be scrutinized like it would be in London. In many cases, however, if your current credit score is good enough or if you have been paying back debts on time then banks will be willing to take care of you.
One of the biggest problems with buying a house in London is that if you don’t know much about your financial history then you aren’t able to buy a property anywhere in the city. In many ways it is very subjective which can be frustrating for those who have been saving up for years to be able to afford to live here. This does make sense, however, considering how much London property costs and how fast prices are rising.
To begin with, unless you are very wealthy or have a huge down payment then renting is likely your best option while living in the city because it will only take a couple of months before you figure out whether or not this is the place for you.