So you have made the decision to invest in a new house. That is fantastic news.
Perhaps you are interested in a stylish 3-bedroom in a quiet cul-de-sac. Or maybe a modern penthouse apartment that comes with stunning views over the city? Regardless of what type of property you are interested in, we are confident that you feel excited about shopping for a new home.
Yet it is important to understand that not everything in the buying process will be plain sailing. Perhaps you have started to notice all the fees and costs involved to buy a new home?
We understand that you may be feeling frustrated or overwhelmed. After all, the costs are already high for the mortar and bricks, and then there are a host of other costs involved before you can even think about getting excited about finally getting your keys to the home you have always dreamed about.
Legal costs, conveyancing, expensive stamp-duties if this is going to be your 2nd home, mortgage fees and the list goes on. This is the reason why many home buyers are always looking to save money where they can before buying a new home.
So if you need some advice on how to save as much as you can along your own buying journey, here is our list of useful saving tips.
Before you even start to set up viewings to see the homes you are interested in or making an offer, make sure you know what your credit score is. Once you know what your current credit score is, you are able to identify the ways in which to increase the numbers. Obviously the higher your score is, the better your chances will be to secure a mortgage that is decent. Family Money is a great website for financial advice that will help you save money.
Take Advantage of Free Online Mortgage Calculators
If you are only starting out with your home-buying experience, use an online mortgage calculator to provide you with an accurate idea of what you will be able to borrow. Use a Google search and you will notice that there are a host of options to choose from. Once you have a better idea of the amount you can think of borrowing, you can now start searching on the comparison sites to locate the current offers available in the areas that you are interested in. You can take this a step further by consulting with our professional mortgage advisors. They are able to provide you with honest and reliable first-hand advice along wth discussing the different options available to you.
Take Into Account The Overall Costs Involved
Trying to work out all the costs that you will be liable for when buying a new home can be a complex task. Yet it could also provide you with an idea of what the total costs will amount to. Take into account any potential costs involved and then plan on budgeting accordingly. Factors such as valuation fees, mortgage arrangement fees, stamp duty, home repairs, removal costs, furnishings, and surveys, are just some of the fees you need to consider. While gaining an idea of what type of costs you can expect won’t be able to save you money technically, it can help you with avoiding any unwanted surprises. In addition, if you are able to over budget slightly you may even be left with some money once you receive the keys for your new home.
Help To Buy ISA
If you are a first-time home buyer you may want to find out about the benefits involved with one of the government schemes which was first introduced in 2017. Lifetime ISA allows you to save as much as £4,000 a year, by either putting money away when you are able to or in a lump-sum. The state will then award you with a 25% bonus to this amount when you use this money towards buying your first home. The government will contribute up to a maximum amount of £32,000.
In many cases, home buyers and more particularly the first-time buyers will settle for the 1st mortgage offer that they come across. They also do the same with the 1st solicitor that they chat with, along with other aspects involved with buying a home. This is because they are overeager to set things in motion. Yet buying a property should not be seen as a race. With the typical transactions taking from 3 to 6 months, time is generally on the buyer’s side, and you should use this opportunity to make well-thought-out decisions. The housing market may be competitive, and it is true that the best homes are often snapped up fast. Yet once you have put in an offer and the seller has accepted, you have the time to shop around for better deals on solicitors and legal fees. Taking a bit of time to conduct your own research could save you a lot of money in the process.
Use One Of The Personal Finance Apps
With the latest technology, you now have more and more options involving useful ways to save your money. If you are currently saving for a deposit, or you are in the market to put in an offer on one of the best deals, there are many finance apps that can guide you on the best ways to save your hard-earned cash.
Keep An Eye On The Market
In some ways, the housing industry is similar to stock markets. This includes its susceptibility to dips and peaks. When you buy a home it is usually based on your own personal decision and it should not be imposed by the current trends. Yet when you know more about the average prices for homes in a particular area you are able to make a more informed decision when you do make an offer.
Monitor The Lease
When it comes to owning one of the leasehold flats it will mean that you are renting the flat for the lease period. Before you buy, it is important to find out about the lease length. The shorter leasehold properties are usually sold for a lower price, but the process of renewing these leases is usually costly. Look at the properties that have over 80 years remaining on the overall lease period. This will mean that you will save money over the long-term and you also never have to worry about a lease that is about to expire.
Find Out What Service Charge Costs Mean
Flats are also accompanied by service charges. This is the fee involved to maintain the building and communal areas. The service charges can range from £80 and £150 pounds every month, and with some properties, these charges are even more expensive. The fee is generally worked out according to the building size and then divided up evenly between the apartments. The buildings that feature many flats usually translate into lower service charges. Amenities are also something you need to consider. The properties that offer a gym, concierge, swimming pool, etc will usually cost more when compared to the developments that only come with communal gardens. It is important to establish what the services charges are before you decide to make an offer.
Try Out An Auction
This might not be for every buyer, but if you are struggling to find a property that you really like, buying from an auction has the potential to save you a significant amount of money. The auctioned properties usually come in at a price that is lower when compared to the market value. Provided you do not get caught up in one of those bidding wars, you can pick up a property at an extremely favourable price point.
Save And Then Save Some More
Buying a home is an expensive affair, yet if you can use one or more of the tips mentioned above, you can make a few savings that will eventually add up. Whether you are just starting out, or you have already put in an offer, these tips can assist you with making the most out of your money before you buy a home.