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How to Save Money When Buying Your First Home

Today we want to provide some great tips on how to save money buying your first home. There is a lot of money involved in buying a home. You spend years saving up enough money for a house deposit – only to spend it all in one go. However, it is crucial to have enough money for a house deposit and all the additional charges. You may need to hire an estate agent to help you find your dream home and a surveyor to check out the property. All of these steps cost more and more money – and you haven’t even moved in yet.
That said, here are a few ways to save money when buying your first home.
It’s not just the deposit
Your house deposit is only one part of the equation. You also need to save for furniture, decorations, bills, additional fees, and so much more. So always keep in mind that the total amount in your house savings account is not just for your deposit – you need to keep some money for other expenses. Once you move into your new home, you need money for renovations and decorative touches. Even the basic items, like a bed frame and mattress, can cost a lot of money.
Budget during the buying process
Photo by Pixabay on Pexels
It’s easy to lose track of your spending during the buying process. You need to budget for all the service charges and additional fees. Keep a list of your expenses and check your account balance daily. You might find you are spending a lot more than you first expected. Update your budget and stay flexible. It’s normal for your budget to move around a little, but you must stay on top of where your money is going.
Work on your credit score
Your credit score can impact interest rates, meaning if your credit score is low, you be needing to pay more money in the long run. While you are saving for a house deposit, you should also be trying to improve your credit score to avoid additional costs here and there. You can always check your credit score online and find how to improve it.
Consider shared ownership
Shared ownership is when you take out a mortgage on a share of the property and pay rent to a landlord for the remaining share. Shared ownership is a more affordable type of homeownership that can help first-time buyers get on the property ladder.
Take advantage of help to buy schemes
The UK government currently offers the help to buy scheme for first-time buyers. You can pay 5% of the house deposit, while the government arranges a repayment mortgage of at least 25%. The scheme is only available for new-build properties, and the maximum property purchase price differs across the country. For example, in the Northwest of England, the maximum property purchase price for the scheme is £224,400.
Considering aspects such as these can help you save money here and there when it comes to buying your home. No matter how much your save, buying a house is always going to be an expensive venture, but one that is worth it and will earn you more money in the future. Plus, saving wherever possible is always helpful!
Read more lifestyle and finance articles at ClichéMag.com
Images provided by Flickr, Unsplash, Pexels, Pixabay & Creative Commons
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