So you and your spouse/partner have decided to buy your very own place. Congratulations! It is going to be the biggest investment that you make and one that leaves you richer than you were ever before. The best part, you will have your very own place that you can do whatever you like with. As easy as it may seem right now, getting a house is difficult. Not because there aren’t any houses left, but because the process is a long one and there is lots of planning involved. You will also need to see how much savings you have and what mortgage you will need to take out.
Worried? Don’t be. Things are a little intense but you can do it so long as you are willing to work with a plan. Here are some suggestion on how you can save up for a house as a couple and apply for mortgage in less than a year’s time.
Before actually getting into the practical applications of purchasing your house, you need to sort out some long term details. Here are some ideas you need to be very clear about.
- Is your spouse or partner in complete agreement of buying the house with you? How much do you plan to invest and what amount of money will the other person put in? What will you do if there comes a point that you want to divide the asset?
- Likewise, who is going to be making the actual mortgage payments each month? You, your spouse, or both of you together? Most couples work out a way in which one partner pays off the mortgage while the other one works to support the house. This way financial burden is eased out.
- Are both of your jobs permanent? Are they secure? There wouldn’t be any sudden departure or shifting away from the place you currently are in and plan to buy a house in? These are things you need to seriously think about before planning to get a house.
- What is the amount of saving you currently have? How about your spouse? Do you have enough to make a 20% down payment? Is there any possibility of monetary help of some kind, like a savings fund, some money from a property etc.? These can make a huge difference on your financial and affordability aspects, so do consider them.
- What are the combined savings of both you and your spouse? Is it enough to invest in a house? Maybe a flat would be better suited at your current condition. If you aren’t sure what is the right amount you need, get in touch with a professional and find out.
Once all these matters have been discussed, agreed upon and written down, you can then start the actual process of discovering the amount you will need and how much savings you need to have in order to get access to your very own place.
How to Save?
Saving money for a house can be tough if you have never been one to save before. There are a lot of expenditures that you will need to cut down on for some amount of time. But hey, it’s for the greater good, right? Here is how you can save money as a couple.
Setting A Budget
The most important thing that you need to do is set up a budget of your monthly and daily expenses. What is the amount of money you spend each day and how can you cut down on it? This is actually not as difficult as it may seem to you. Cutting down on expenses in no way signifies that you should stop all kinds of indulgences but rather that you limit them. For example, if you used to eat out every single week, cut it down to twice a week. You will be surprised by how much you are able to save within a month!
If you have more than one car, get rid of one and save up the money. Not only will you get some cash from the selling of the car, you will also be able to save up on the fuel and regular maintenance cost of the car.
First Buy and Help to Buy Schemes
These government schemes are some of the best things happening to the people of UK. With the first buy, you will be able to acquire 20% loan from the government to make the down payment. These loans are available for new housing schemes. Help to Buy is another scheme that allows lenders to get mortgages on 5-10% only.
Check out the website of these schemes and discover more. You will be surprised by how much help is available for people who want to invest in their own homes, especially if they are first time buyers. Just make sure you go through the plans in detail in order to understand which scheme will work best for your needs. They are going to save you quite a bit of money.
Now that you know all about mortgages, we would suggest that you get in touch with a professional about your personal consultation and advice. Remember, investing in a house is a huge decision and mortgages are pretty expensive. Since you will be paying this for a long time, you need to know everything you can about the market, interest rates and what is the best option for you. We at quiddicompare provide our users with all the right facilities to compare all the well-known, reputed and trustworthy mortgage providers and lenders. Visit our website today to find out the lender that best fits your requirements. Be sure to specify what it is you are looking for. Best of luck!