Owning a home is a major life goal for many people, offering stability, a sense of achievement and most importantly, security going forward, especially if you’re thinking about starting a family.
We understand that in many cases, even getting started can be difficult for some buyers, especially as affordability is squeezed in the current market. Buying a property is a huge financial step and for many people, finding savings where possible is key to achieving home ownership.
That’s why we’ve put together this article, examining how to get on the property ladder on a budget and where you might find some savings within the process.
How to Get on the Property Ladder on a Budget
The process of buying a home can be extremely overwhelming, especially if it’s your first-time. The good news is, there’s plenty of opportunities to make savings throughout the process, depending on how you approach the search and purchase.
To make things easier, we’ve broken down the buying process into several stages and detailed the various ways you can start saving money, allowing you to get on the property ladder on a budget.
Preparing Your Finances
Firstly, consider how you might start preparing your finances in the run up to your purchase.
Check your credit score
When you come to buy, your credit score will be used to assess your affordability, whether that’s a lender, housing association or other professional. Your credit score essentially shows how reliable you are at repaying money and the higher it is, the easier the buying process will be.
In the run up to the purchase, it’s worth using a third-party service to check your score. If it’s low, you can start working on improving it by: paying bills out on time, starting to repay any debts, using your credit card and repaying it in due time. If you check early enough, you’ll be able to start improving your score well within time.
Maximise your savings
The biggest financial hurdle for most people is the deposit. It’s always required and depending on the value of the home you’re buying, can be a significant outlay.
While buying through Shared Ownership can significantly reduce the size of the deposit required, it’s still a major consideration and will require you to maximise ways of saving.
We’ve already run through some of the easiest ways to save for a deposit but a key consideration is to cut back on unnecessary spending, look at money saving sites for different vouchers or freebies you can find and of course, where possible, utilise banking options such as a Lifetime ISA (Individual Savings Accounts). While these require plenty of time to get up and running, they’re extremely useful for building savings whilst also earning a government bonus.
Change the Way You Search
A great way of finding savings is by changing the way you search and reassessing what you’re looking for.
Widen the search
While you might have your heart set on a certain location, it’s always worth looking around the local area to see if you can find savings. If you want to buy near a city for work, for example, it’s worth looking at some of the more unknown locations rather than popular suburbs as you might find a bargain. A ten-minute addition to the commute could save you thousands in the long run.
Likewise, consider what’s occurring around the area. You might be dismissing an area because of a lack of amenities, for example, but these could be in progress and by the time you come to move, you’ll have missed out on a potential hidden gem that was under development.
Consider a renovation
One of easiest ways to find savings during your property search is by purchasing a fixer-upper. Homes that need redecorating, cosmetic fixes such as a new kitchen or minor structural work, such as new windows or new central heating, can often result in savings when it comes to buying. If you’re particularly handy, even better, as you’ll also save money when it comes to performing the work.
Consider upcoming developments
If you’re thinking about buying in a certain place, research some of the upcoming developments that might be in progress around the area. Many of these new developments offer incentives if you’re looking to buy and ready to move in, which can often result in savings.
Buying Smart
Buying smart is one of the easiest ways to find big savings, especially with so many affordable home ownership schemes out there.
Shared Ownership is obviously the most prominent scheme in the current market, offering affordability in terms of both deposit and monthly payments, while also offering a route to full home ownership.
While Shared Ownership is only available in certain locations or on certain properties, it’s a great way to buy in more expensive or desirable areas without having to break the bank.
You can learn more about Shared Ownership here.
