Different Ways To Buy A Property

Buying a home is a significant financial decision for anyone and can be a complex, and intimidating process.

There are several different ways to buy a property in the UK, each with its advantages and disadvantages.

Let’s explore the different methods of buying a home and gain an understanding of what each option means for you.

Outright Purchase

One of the most straightforward ways to buy a home is to purchase it outright.

This means that you have the necessary funds to buy the property without the need for a mortgage or any other form of financing.

Outright purchase offers several advantages, such as:

  • Complete ownership
  • No mortgage interest payments
  • No restrictions on property usage

However, buying a home outright requires a substantial amount of money, making it an option primarily for those who have saved or inherited a significant sum of money.


For the majority of homebuyers in the UK, obtaining a mortgage is the most common way to finance a property purchase.

A mortgage is a loan secured against the property, and it allows you to spread the cost of buying a home over several years, typically 25 to 35 years.

Mortgages come in various forms such as:

  • Fixed-rate mortgages: A fixed-rate mortgage has a consistent interest rate and monthly payments that never change throughout the loan’s term.
  • Variable-rate mortgages: A variable-rate mortgage has an interest rate that can change periodically, affecting the monthly payments.
  • Interest-only mortgages: An interest-free mortgage is a loan for a home purchase where the borrower only pays back the principal, with no interest charged.

The main advantage of using a mortgage is that it enables people to buy homes without having to pay the full purchase price upfront.

However, it involves interest payments, and the property serves as collateral, meaning it can be repossessed if the borrower defaults on payments.

Shared Ownership

Shared ownership is a scheme that allows you to purchase a portion of a property (usually between 25% and 75%) and pay rent on the remaining share.

This option is designed to help first-time buyers or those with lower incomes to get on the property ladder.

Shared ownership can be particularly appealing because it requires a smaller deposit and lower mortgage payments.

Over time, you can gradually increase your share of ownership through a process called “staircasing.”

While this option offers affordability, it comes with restrictions, such as limitations on selling your share and potential rent increases.

Right to Buy

The Right to Buy scheme allows tenants of council or housing association properties in England to purchase their homes at a discount.

The discount is based on the length of time they have been a tenant, and it can significantly reduce the property’s purchase price.

This scheme aims to promote homeownership and give tenants the opportunity to own the property they live in.

However, the right to buy is limited to specific properties and eligibility criteria.


Another way to invest in property in the UK is through a buy-to-let arrangement. This involves purchasing a property with the intention of renting it out to tenants.

Buy-to-let investors can generate rental income, potentially benefit from property appreciation, and build a property portfolio over time.

However, this option requires careful financial planning, as it involves responsibilities such as property management, maintenance, and adherence to landlord regulations.


Some home-buyers prefer to buy property at auctions, where properties are sold to the highest bidder.

Auctions can offer opportunities to secure properties at competitive prices, but they also come with risks, such as the need for a significant deposit on the day of the auction and the potential for properties to require renovation, meaning you’d need to potentially invest more money into the property.

Leasehold and Freehold

When purchasing a property, whether it’s a new build home or secondhand, it’s essential to understand the difference between leasehold and freehold ownership.

  • Leasehold: In a leasehold arrangement, you own the property but not the land it’s built on. Leasehold properties often come with ground rent and service charges.
  • Freehold: Freehold ownership, on the other hand, means you own both the property and the land it sits on.


There are various ways to buy a home in the UK, each with its own set of advantages and considerations.

Your choice heavily depends on your financial situation, personal preferences, and long-term goals.

Before making your decision It’s crucial to conduct thorough research, seek professional advice, and carefully assess your options before embarking on the journey to becoming a homeowner.

If you are looking to purchase a Hopkins home reach out to one of our Sales Consultants, who will happily discuss the options available to you.