There are a number of ways available to secure the property of your dreams without using a mortgage. The top four methods of doing so are explained below.

Cash Purchase
If you’re lucky enough to have a large sum of money sat in a bank account or invested as stocks and bonds then you can easily use this to purchase property without the need for a mortgage. Purchasing property this way will not only save you thousands of pounds worth of interest over the years (normally 25 years for a mortgage), it will also give you a bit of leverage with regards to the asking price of the property. Buyers who don’t need to arrange for a mortgage are a seller’s best friend, especially when they’re in a chain sale, and so emphasising the fact that you have cash can get you a nice reduction in price if you’re lucky.

Equity Release
People who already own a property outright often have a fair bit of equity in the property that can be put to use buying a second property. Admittedly this would mean that the property you current own would be worth less if you later sold it – as you’d have to pay the equity release company the amount they lent you against the house – but it also means that you can release money which can be used instead of a mortgage on another property. At the end of the process you still have property worth the same amount of money but now you own two properties rather than one.

Trade or Exchange
Again, if you own your property outright but you fancy a change of location then you could consider a property exchange. This often involves a straight swap with the owners of a similar priced house and is a great way to live where you want without the need to take out another mortgage. If you have a house or property in a desirable location then you could even exchange for a house worth more than your current home does.

Rent
This last alternative is the most popular for younger people who haven’t got the deposit or income to secure a mortgage. Private rentals are a way of setting up home without taking out a long term mortgage and as most rental agreements only last from 6 months to 2 years at a time they offer great flexibility. Obviously renting doesn’t buy you your home but it does give you’re the opportunity to save for a deposit while still being independent…and you get the benefits of a landlord should anything go wrong with the property.