Getting on to the property ladder is one of the most expensive things that most people will ever do. It takes an enormous amount of money – or a hefty mortgage – to buy a house in the UK. But, luckily there are some ways of knocking a fair few pounds off. Today, we’re going to have a look at some of the best ideas around for anyone looking to get on the ladder who wants to make some savings. Let’s get stuck in right away.
Use a government scheme
If you’re a first-time buyer, there are some government schemes that can help you. There are various schemes in place, which can help you borrow money to help with raising a deposit, such as the Help To Buy scheme. Help To Buy also guarantees your loan with the bank when you take a mortgage out on old or new homes. It’s worth taking a look to see if there is anything that can help you. Head over to the government housing website for a further look.
Raise a large deposit
One of the biggest costs of buying a home comes from your interest. Although you might not notice it as you pay each month, over the years it can cost you a considerable amount. Let’s say that your interest rate is 5%. That might not seem a lot, but you will be paying that on what you owe every year for around twenty years or so, you can see how it adds up. So, the answer is to raise as much of a deposit as possible. Higher deposits will give you a far better interest rate, and lower your monthly payments, too.
Get a house inspection
It’s worth investing in a house inspection before you buy any house. There will be a structural inspection, under the terms of your mortgage, but it won’t reveal everything. A proper inspection should reveal any flaws in the home, which you can then point out to the owner. If they haven’t accounted for it in the house price, then why not try haggling with them? Any major work that needs doing can put a lot of people off buying, so it’s worth looking at. If they are struggling to find a buyer, you never know how much you could save if you play your cards right. As with any trade in life, you have to know how to play the game.
Go to a house auction
House auctions can be a great way to find a real bargain. However, you have to bear in mind, that if a property is in demand, you may end up paying over the odds. One thing you should do if it’s something you’re considering is to get as much info as you can on the property. House auctions have guide prices, and the best deals will result in you getting near this price. However, if you have to spend tens of thousands to fix structural problems, it won’t be much of a deal. So, bide your time, and take in as much as you can before entering a bidding war.
Do you have any tips to share? We’d love to hear from you if so…