How are property investments financed in the UK?

When you are looking to finance property in the United Kingdom, it is run a little bit differently than in other places. In the United States, most lenders want to see a 20% down payment made before they give out any loans for a home. The fact of the matter is that these properties are not owned by anyone but the bank until they are paid off. In the UK, it is actually a similar process.

Key Takeaways:

  • Forty two percent of people in the UK who purchased a home in the last eleven years did so with cash.
  • Nearly 20% of homebuyers reported that they used alternative forms of financing than mainstream loans.
  • Mezzanine finance, crowdfunding options and loans that are unregulated are different avenues that homeowners used to purchase their home.

“The latest research from Market Financial Solutions has uncovered how Britons are financing their property investments, and the factors influencing their decision.”

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