Can a personal loan help you get on the property ladder?
It’s no surprise that property prices have shot up and become more and more unaffordable (thanks baby boomers, you ruin it for the rest of us). It’s pretty frustrating, so if you haven’t inherited a king’s ransom from family or not married into wealth buying a property has become significantly difficult!
With that in mind, coming up with creative ways to get on the property ladder have become a sort of game for the twenty somethings these days. One way of doing that is by getting a personal loan, which might seem a bit of a contradiction initially but if you are financially disciplined enough you can actually have a better chance to borrow money. It is also important to note that you need to find personal loans that suits your needs otherwise you might have additional bills which make getting the loan a financial stretch in the first place.
By having a personal loan you are basically telling the banks that you are actively proving that you are responsible with your money. A great way to do that is by getting a personal loan for a car for example. As long as you pay the monthly payments promptly then in theory banks will be kinder to you once you decide to go that step further and get a mortgage.
Also if you do decide to get a personal loan your credit score could be likely to improve. Not a given by any stretch of the imagination, but if you’re responsible with how much you lend and your monthly repayments then you shouldn’t have any problems.
In short a personal loan could be a way to get on the property ladder, but it’s a long game and you shouldn’t use any form of lending to buy a house other than a mortgage where interest rates are lower. The best way to get on the property ladder is to save as much as you can and be realistic on where you want to live or buy.