Wednesday, July 24, 2024

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4 Practical Ways to Buy a House Without Money

Buying a house is already a big decision. When you have to do that without money or no financial back-up, it is a herculean task. You have no clear picture of how to start, where to start, and when to start. But you know what; we humans have the habit of dealing with the impossible things. History proves it.

Home buying is a big decision that means it needs big courage, and if you are doing that with no funds, you need that.  Remember one thing that every financial decision can become comfortable in the right manner to do something, and there are practical ways for everything.

You are not alone

If you think you are the only one with no money, then you are sharing the boat with many others. Every year countless people come with the same query of how to buy a house with no money. The financial situations keep changing and also the mood of the economy of a nation. Look around, the type of stability issues that the UK economy is facing nowadays will take to revive. It is better that you start early as the property market will take time for every formality, every process.

1. Apply for a joint mortgage

A joint applicant can quickly compensate your financial weakness by adding the shield of his/her finances. The option usually works for couples.

However, the condition is that –

• Prime applicant, as well as the joint applicant, should be in a regular full-time job. You cannot say that your wife has gathered a lot of money through her saving habit or some freelance work. A monthly income should be there to show.
• Your co-applicant should be earning well with a balanced debt-to-income ratio. If that is possible, you can borrow money and can buy your ‘home sweet home’.


Who can get a joint mortgage?

Usually, it is considered that only couples can apply for a joint mortgage. But that is just a perception, get familiar to the reality with the following points and know precisely who can get a joint mortgage?

• One or more family members or friends that you intend to live with.
• A family member or  a friend who want to give a financial back-up to you or want to purchase a part of the property for investment.
• Your business partner who wants to buy the property with you for the investment purpose.


It is essential to stay aware of the actual meaning of a method before you use it. Misinterpretation causes wrong decisions and a huge loss.

2. Additional collateral – If you own a property (maybe paternal)

It can be a solid point for you to buy a home with absolutely no money. A property that you own can be used as the additional collateral. It is massive security for the lender, and it can easily offer you funds. The property can be a paternal house or any other one, but the condition is that it should be on your name.

4 Practical Ways to Buy a House Without Money

You need to make sure that the additional collateral –

• Is in good condition
• It is not abandoned

The best thing is to present a home/property that gives rental income. It can be a double shield against the threats of home buying with no money.

3. Go for shared ownership

In this method, you do not buy the whole property, but a certain percentage of it that spans from 25% to 75%. The rest of the part or percentage is owned by either a housing developer or a local authority. It saves you from a large size mortgage as you need to borrow only for the value of the share that you own. For the part that is owned by the other party, you need to pay the rent.

Shared ownership is usually for the existing and new build properties on leasehold. The benefit of this method is that you can buy a property much more significant than your affordability.

4. Gather deposit

All your problems are solved if you manage to arrange the deposit amount. The biggest anxiety for any mortgage lender is on the part of the financial efficiency of the applicant. Through deposit, you can quickly turn the situation in your favour.

Leave the rest of the things, the first thing that any home buyer will need is the deposit money. Maybe not a huge one but at least the minimum 5% is required. But, with no financial back-up, it is difficult to take the things forward. Later if you will need a mortgage, the lender and the seller/builder always prefer the borrower with a down payment. There are ways through which you can arrange deposit money.

• A gift from your relative – It has been a culture in the UK (as you already know) to gift to children and grandchildren. It can be cash or a fixed deposit on the name of that person who receives the gift. If you have any such thing, it can be presented as the deposit money.
• Your guarantor pledges his/her savings account – Another way to ensure the presence of down payment. Your guarantor vows a savings account with the minimum deposit money. However, it is on the wish of the guarantor that if he wants, he can put more than 5% amount.

Mostly these two tricks are used by the varied borrowers according to their convenience. The reason behind this is, both are reliable. The money already comes under the authority of the lender.


Use any of the above ways, and you can smoothly get a mortgage with no deposit. However, before you exploit any of them, first explore them. Home buying is a huge decision, and you need to get into the details of everything beforehand. It is not easy to buy a house with no money. The wrestle with the conditions becomes difficult, but we cannot say the task is impossible. At least not after reading about the above promising methods you can lose hope.

Do not forget, whatever you do, it should be in right harmony with your affordability. Do not decide in haste or excitement. Careless attitude only delivers regretful decisions. Walk in the right direction, and you will get to the destination.

Description- Know about the possible ways of buying a house with no money. The situation may look complicated, but it is not as several effective ways are there.

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