Almost certainly, buying a house will be the most expensive thing you ever buy. Before, it used to be nearly impossible to find or save enough money to buy your first home and get your foot on the property ladder without taking out a mortgage.
Even though most people still don't have the cash they need to buy a home, people are starting to look into alternatives to the mortgage. With more people using the internet to look for a new home and more involvement from both the buyer and seller, it has never been easier for the buyer and seller to talk to each other directly.
Buyers and sellers are now talking to each other to see if they can agree on a way to trade the house that doesn't always involve money. These deals are getting more and more creative, and they can meet a wide range of needs for one or both parties.
The seller mortgage is the most common alternative to a traditional mortgage. Most buyers, and especially first-time buyers, need a big down payment before they can buy a home. Usually, this is a percentage of the total price, and 10% is the standard. The price of homes in the UK has gone up a lot in the last ten years, and a small two-bedroom terraced house can now cost as much as GBP18,000 in some parts of the country. Since many buyers have to keep renting their current home, it isn't always easy to save money. A seller mortgage agreement is possible if they want to buy a house from someone who doesn't have a mortgage to pay.
In a seller mortgage, the original owner refinances the property and sets up a loan for the new buyer that is paid off over time. This is a complicated loan, but it has become much easier in recent years because it can now be set up online and the details don't always need to be worked out by an expensive accountant.
