There are many ways to buy a house in the UK, from traditional mortgages to creative schemes.
Usually, buying a house in the UK means getting a mortgage from a lender, with your deposit, income, and the state of the economy all affecting the terms. Some buyers, however, have enough money to purchase a property outright, skipping loans entirely.
Beyond these common routes, there are several alternative ways to buy a home – some of which aren’t widely known. These options might not suit everyone, but they can help people get onto the property ladder (or support loved ones to do the same).
To help you explore your choices, here’s a summary of 17 different ways to buy a house in the UK, each with its own advantages and drawbacks. It’s wise to get professional advice before making any decisions.
1. Cash Buyers
Buyers with enough money can purchase a property outright, avoiding loans. This can speed up the process and give negotiating power, but it requires thorough financial checks.
2. Auction
Properties can be bought at auctions, often at lower prices and with a quick turnaround. However, buyers must prepare in advance and may face unexpected issues with the property.
3. Right to Buy Scheme
Council tenants in England and Northern Ireland may be able to buy their homes at a discount, though the scheme is limited and not available everywhere.
4. Right to Acquire Scheme
Similar to Right to Buy, this scheme lets eligible housing association tenants buy their homes at a smaller discount.
5. Shared Ownership
First-time buyers can purchase a share of a property (usually 25-75%) and pay rent on the rest, gradually increasing their ownership over time.
6. Build Your Own Home
Some choose to build their own home, which can be cheaper but involves finding land, securing a special mortgage, and managing the project.
7. Lifetime ISA
People aged 18-40 can save money in a Lifetime ISA, receiving a government bonus to help buy their first home – though there are limits on property value and withdrawal penalties.
8. Guarantor Mortgages
A family member or close friend can guarantee a mortgage, helping those with lower incomes qualify. However, both parties’ credit can be affected if payments are missed.
9. Shared Mortgages
Two or more people (often couples) can take out a joint mortgage, sharing responsibility for repayments and ownership.
10. Joint Borrower Sole Proprietor (JBSP) Mortgages
Up to four people can help with mortgage repayments, but only one owns the home. This method is often used by parents to help children buy a property.
11. First Homes Scheme
First-time buyers in England can buy new-build homes at a 30-50% discount, but there are income and price limits.
12. Security Deposit Mortgages
A friend or family member can guarantee just the deposit, not the entire mortgage.
13. Home Reach Scheme
Buyers can part-buy, part-rent new builds through Heylo, with a minimum 5% deposit and income limits.
14. Gradual Home Ownership
Schemes like Wayhome let buyers purchase a share of a home and pay rent on the rest, increasing ownership over time without a mortgage.
15. Affordable Housing
Various schemes offer cheaper homes for those who can’t afford market prices, but supply is limited and competition is high.
16. Specialist Finance
Options like bridging loans and buy-to-let mortgages are available for investors, not for those buying a home to live in.
17. Alternative Housing Ideas
Unconventional options include log houses, houseboats, or converted vans. These can be more affordable but may be harder to finance or resell.
Each option has its own pros, cons, and eligibility requirements, so it’s important to research and seek professional advice before deciding.
